APDNEUTRAL

Gross Margin

31.1%

Higher than 14% of Basic Materials sector peers

Updated 1878h ago

Sector Performance

14th percentile

APD

31.1%

Sector Median

44.1%

Sector Avg

-39957.7%

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Deep Analysis

Air Products and Chemicals’ gross margin of 31.1% means that for every dollar of revenue, the company keeps about 31 cents after covering the direct costs of producing its industrial gases and chemicals.

This figure sits well below the Basic Materials sector median of 45.1%, placing APD in the 13th percentile among its peers — meaning 87% of comparable companies have a higher gross margin. Because year-over-year and quarter-over-quarter changes are not available, there is no trend data to assess whether the margin is improving or deteriorating. The combination of a low gross margin and an absence of trend makes it difficult to judge momentum, but the current level alone signals weaker pricing power or higher input costs relative to competitors. This metric directly supports the overall CAUTIOUS verdict, as an already narrow gross margin leaves little room for cost increases or pricing pressure without squeezing profitability further.

Frequently Asked Questions

What does the Gross Margin tell investors about APD?

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 APD's Gross Margin compare to its sector?

APD's Gross Margin of 31.1% compares to a Basic Materials sector median of 44.1%, placing it in the 14th percentile.

Who are APD's closest peers by Gross Margin?

The closest Basic Materials peers by Gross Margin include: MP (44.1%), BHP (42.8%), PPG (42.1%), CDE (49.8%), PAAS (52.7%).

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.