CEGNEUTRAL

CEG Gross Margin Analysis

16.4%

Updated 105h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying direct production costs, so 16.4% means CEG keeps $0.164 of each sales dollar before other expenses.

Sector Performance

7th percentile

CEG

16.4%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

26.9%(Aug 2026)

↓ Declining

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Deep Analysis

Gross margin is the share of revenue left after paying direct production costs, so 16.4% means CEG keeps $0.164 of each sales dollar before other expenses.

That level is far below the sector median of 46.4%, putting the company in the 8th percentile among peers. The year-over-year change is N/A, but quarter-over-quarter the margin fell 39.0%, from 26.9% to 16.4% in just one period. The combination of a low absolute margin and a sharp quarterly decline points to rising input costs or pricing pressure, increasing near-term earnings risk. The margin trend could also signal an opportunity if the drop reverses, but no YoY data prevents confirmation of a longer pattern. This metric contradicts the NEUTRAL verdict because a deteriorating margin at this low level leans more negative than balanced.

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: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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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.