APTVNEUTRAL

Gross Margin

18.1%

Higher than 24% of Consumer Cyclical sector peers

Updated 47h ago

Sector Performance

24th percentile

APTV

18.1%

Sector Median

36.1%

Sector Avg

30.8%

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Deep Analysis

Aptiv's gross margin of 18.1% means that for every dollar of revenue, the company keeps about 18 cents after paying direct production costs—the rest covers materials, labor, and manufacturing.

This is well below the Consumer Cyclical sector median of 36.2%, placing Aptiv at only the 23rd percentile among peers. The metric has been perfectly stable over the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. A low gross margin combined with no movement suggests limited pricing power or cost leverage, but the lack of deterioration also indicates no immediate downside risk. This profile neither amplifies nor undermines the overall NEUTRAL verdict—the stability offers no catalyst for upgrade or downgrade, while the below-median level reinforces the case for holding rather than adding or exiting.

Frequently Asked Questions

What does the Gross Margin tell investors about APTV?

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 APTV's Gross Margin compare to its sector?

APTV's Gross Margin of 18.1% compares to a Consumer Cyclical sector median of 36.1%, placing it in the 24th percentile.

Who are APTV's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BROS (22.8%), XPEV (21.3%), TSLA (21.1%), BBY (20.9%), BWA (19.2%).

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.