CHRWCAUTIOUS

Gross Margin

7.7%

Higher than 10% of Industrials sector peers

Updated 296h ago

Sector Performance

10th percentile

CHRW

7.7%

Sector Median

29.0%

Sector Avg

662.6%

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Deep Analysis

Gross margin measures the percentage of revenue a company retains after paying the direct costs of producing its services; CHRW's current 7.7% means it keeps less than 8 cents of every dollar earned.

That is well below the Industrials sector median of 29.0%, placing the company in the 10th percentile among its peers—indicating a low-margin business relative to the industry. The year-over-year change is not available, but quarter over quarter the margin declined by 3.7%, from 8.0% to 7.7%, showing recent pressure on profitability. A low gross margin combined with a downward trend suggests the company faces structural cost or pricing challenges, raising the risk of thinner earnings. This metric directly supports the overall CAUTIOUS verdict on CHRW, as both the level and direction point to weak underlying economics.

Frequently Asked Questions

What does the Gross Margin tell investors about CHRW?

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.

How does CHRW's Gross Margin compare to its sector?

CHRW's Gross Margin of 7.7% compares to a Industrials sector median of 29.0%, placing it in the 10th percentile.

Who are CHRW's closest peers by Gross Margin?

The closest Industrials peers by Gross Margin include: BLDR (28.3%), BE (30.0%), SAVE (31.3%), AAL (26.0%), CARR (23.3%).

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.