CATCAUTIOUS

Gross Margin

33.1%

Updated 126h ago

Sector Performance

29th percentile

CAT

33.1%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

CAT's gross margin of 33.1% means that for every dollar of revenue, the company keeps $0.331 after covering the direct costs of producing its machinery and equipment.

That figure sits well below the sector median of 44.2%, placing CAT in the 29th percentile among its peers—meaning 71% of competitors achieve a higher gross margin. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 5.7%, dropping from 35.1% in the prior quarter to 33.1% currently. The combination of a gross margin that is far below the sector median and a recent decline points to potential pressure on pricing or rising input costs, increasing the investment risk. This metric directly supports the overall CAUTIOUS verdict, as the weak level and downward trend are warning signs that warrant careful monitoring.

Frequently Asked Questions

What does the Gross Margin tell investors about CAT?

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 CAT's closest peers by Gross Margin?

The closest peers by Gross Margin include: EXPD (14.0%), 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.