CDWNEUTRAL

Gross Margin

21.0%

Updated 224h ago

Sector Performance

15th percentile

CDW

21.0%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its goods or services—here, 21.0% means CDW retains $0.21 of each sales dollar for other expenses and profit.

This figure is well below the sector median of 44.4%, placing CDW in the 15th percentile among its peers, indicating it has a much lower pricing power or higher cost structure than most competitors. There are no trend data available: the year-over-year and quarter-over-quarter changes are both listed as N/A, and the only historical value provided is the current 21.0%, so no direction can be assessed. The combination of a low gross margin with no observable trend makes it difficult to judge whether the metric is improving or deteriorating, introducing uncertainty rather than a clear risk or opportunity. This metric does not directly contradict the overall NEUTRAL verdict, but the weak competitive position relative to peers tilts toward caution, reinforcing the view that the stock is a neutral holding lacking a strong margin advantage.

Frequently Asked Questions

What does the Gross Margin tell investors about CDW?

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 CDW'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.