BANEUTRAL

BA Gross Margin Analysis

11.5%

Higher than 26% of Industrials sector peers

Updated 1467h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying the direct costs of making its products, so BA’s 11.5% means it retains about 11.5 cents from each dollar of sales before other expenses.

Sector Performance

26th percentile

11.5%

Sector Median

28.9%

Sector Avg

846.3%

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Deep Analysis

That figure sits well below the sector median of 29.6%, placing BA at the 25th percentile among Industrials peers, meaning roughly three-quarters of comparable companies show higher gross margins. The trend data is not available: both the year-over-year change and quarter-over-quarter change are marked N/A, so no direction can be inferred from the single reported value of 11.5%. The combination of a low level and an unknown trend implies elevated uncertainty about BA’s cost structure and pricing power, which raises the risk of thinner profits if revenue weakens. However, gross margin is just one component, and the lack of trend data prevents this metric from clearly signaling further deterioration or improvement. On balance, this metric neither strongly supports nor contradicts the overall NEUTRAL verdict — it flags a competitive disadvantage but does not by itself force a bearish stance.

Frequently Asked Questions

What does the Gross Margin tell investors about BA?

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 BA's Gross Margin compare to its sector?

BA's Gross Margin of 11.5% compares to a Industrials sector median of 28.9%, placing it in the 26th percentile.

Who are BA's closest peers by Gross Margin?

The closest Industrials peers by Gross Margin include: BLDR (28.1%), AVY (29.6%), POOL (29.7%), SAVE (31.3%), AAL (26.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

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.