ALLNEUTRAL

Gross Margin

45.3%

Higher than 18% of Financial Services sector peers

Updated 1880h ago

Sector Performance

18th percentile

ALL

45.3%

Sector Median

68.5%

Sector Avg

67.7%

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Deep Analysis

Allstate's gross margin of 45.3% means that for every dollar of revenue, the company retains roughly 45 cents after covering the direct costs of providing its insurance policies and services, before other expenses like sales or overhead.

This figure sits well below the Financial Services sector median of 76.6%, placing Allstate in the 16th percentile among its peers—meaning 84% of comparable companies have a higher gross margin. Trend data is unavailable: the year-over-year change is listed as N/A, the quarter-over-quarter change is N/A, and there are no historical values beyond the current 45.3%. Without a trend, it is impossible to assess whether the margin is improving or deteriorating, which introduces uncertainty for investors evaluating future profitability. The combination of a low margin relative to peers and a complete lack of trend information suggests a higher risk of competitive disadvantage or cost inefficiency, yet no signal of momentum exists to confirm or ease that concern. This metric does not contradict the overall NEUTRAL verdict—the low percentile rank is a negative, but the absence of trend data prevents it from shifting the balance toward a bullish or bearish conclusion.

Frequently Asked Questions

What does the Gross Margin tell investors about ALL?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ALL's Gross Margin compare to its sector?

ALL's Gross Margin of 45.3% compares to a Financial Services sector median of 68.5%, placing it in the 18th percentile.

Who are ALL's closest peers by Gross Margin?

The closest Financial Services peers by Gross Margin include: SLM (68.5%), SPGI (70.4%), JPM (64.3%), IBN (73.6%), HDB (58.4%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.