CAGCAUTIOUS

Gross Margin

24.4%

Updated 8h ago

Sector Performance

20th percentile

CAG

24.4%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

CAG’s gross margin of 24.4% means that for every dollar of revenue, the company keeps about 24 cents after deducting the direct costs of producing its goods.

This is well below the sector median of 44.7%, placing CAG in the 20th percentile among its peers — indicating most competitors have higher profitability from their core operations. The year-over-year change is not available, but the quarter-over-quarter change is a +3.4% improvement from the previous quarter’s 23.6%. While the absolute level is low, the recent sequential uptick suggests a potential stabilization after prior weakness. For an investor, the combination of a below-median margin and a modest quarterly gain points to persistent competitive pressure, offset by a small operational recovery. This metric supports the overall CAUTIOUS verdict because the low gross margin remains a structural concern, even with the recent improvement.

Frequently Asked Questions

What does the Gross Margin tell investors about CAG?

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.

Who are CAG's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

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.