BANEUTRAL

BA Gross Margin Analysis

11.5%

Higher than 20% of Industrials sector peers

Updated 540h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after subtracting the direct costs of producing its products; BA’s current 11.5% means that for every dollar of sales, only $0.115 remains to cover other expenses and profit.

Sector Performance

20th percentile

BA

11.5%

Sector Median

29.0%

Sector Avg

662.7%

📊

Deep Analysis

Gross margin is the percentage of revenue a company keeps after subtracting the direct costs of producing its products; BA’s current 11.5% means that for every dollar of sales, only $0.115 remains to cover other expenses and profit.

This figure sits well below the Industrials sector median of 29.0%, placing BA in the 20th percentile among its peers, indicating a cost structure that is much less efficient than most competitors. The trend for this metric is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and there is only a single historical data point (11.5%), so no directional insight can be drawn. The combination of a very low gross margin with no trend data suggests that investors face elevated uncertainty — the current level signals potential pricing power or cost-control weakness, but without a historical baseline it is impossible to assess whether this is improving or worsening. This metric contradicts the overall NEUTRAL verdict because a gross margin that is roughly 60% below the sector median typically points to structural disadvantages that would warrant a bearish view, not a neutral one.

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 29.0%, placing it in the 20th percentile.

Who are BA's closest peers by Gross Margin?

The closest Industrials peers by Gross Margin include: POOL (29.0%), AVY (28.9%), BLDR (28.3%), BE (30.0%), SAVE (31.3%).

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.

Advertisement

Master BA's Valuation

Get the complete institutional research report covering all fundamental and technical metrics.

View full BA research report

Free account — no credit card

BA

11.5%

Sector Median

29.0%

Sector Avg

662.7%

How BA's Gross Margin compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.