CARGNEUTRAL

CARG Gross Margin Analysis

92.2%

Updated 12h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying direct production costs, and at 92.2% CARG keeps $0.92 of every revenue dollar before other expenses.

Sector Performance

100th percentile

CARG

92.2%

Sector Median

44.6%

Sector Avg

45.5%

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Deep Analysis

Gross margin is the share of revenue left after paying direct production costs, and at 92.2% CARG keeps $0.92 of every revenue dollar before other expenses.

This sits well above the sector median of 44.6%, placing the company in the 100th percentile among peers. Trend data is unavailable: the year-over-year change and quarter-over-quarter change are both N/A, so no directional pattern can be confirmed. The high margin suggests strong pricing power or a cost-light model, but the absence of trend data means investors cannot gauge whether this level is improving or eroding. This combination supports the NEUTRAL verdict: the margin level is a positive attribute, yet it is not enough to justify a bullish stance without trend confirmation.

Frequently Asked Questions

What does the Gross Margin tell investors about CARG?

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 CARG's closest peers by Gross Margin?

The closest peers by Gross Margin include: LLY (81.9%), MSCI (82.7%), SYF (82.7%), EA (82.8%), THC (83.4%).

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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.