CEGNEUTRAL

Gross Margin

26.9%

Updated 176h ago

Sector Performance

21th percentile

CEG

26.9%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying for the direct costs of producing its goods or services—a higher number typically indicates stronger pricing power or cost efficiency.

At 26.9%, CEG’s gross margin sits well below the sector median of 44.4%, placing it in the 21st percentile among its peers. The metric has been decreasing over the last eight quarters, with no year-over-year comparison available but a sharp quarter-over-quarter drop of -37.3% from the prior period’s 42.9%. This combination of a low margin relative to peers and a persistent downward trend signals increased investment risk, as the company may be losing profitability at the product level or facing rising input costs. The overall NEUTRAL verdict is supported by this metric: the weak level and deteriorating trend reinforce caution, but without confirming a clear bullish or bearish case on their own.

Frequently Asked Questions

What does the Gross Margin tell investors about CEG?

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 CEG'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.