CMCNEUTRAL

CMC Gross Margin Analysis

18.3%

Updated 156h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue left after subtracting the cost of goods sold, so an 18.3% reading means CMC keeps that amount from each dollar of sales to cover other expenses and profit.

Sector Performance

11th percentile

CMC

18.3%

Sector Median

44.6%

Sector Avg

45.5%

Prior Period

18.2%(Jun 2026)

→ Stable

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Deep Analysis

Gross margin is the percentage of revenue left after subtracting the cost of goods sold, so an 18.3% reading means CMC keeps that amount from each dollar of sales to cover other expenses and profit.

This figure sits far below the sector median of 44.6%, placing CMC in the 11th percentile among its peers, indicating a competitive disadvantage in cost efficiency. Year-over-year change is not available, but the quarter-over-quarter change shows a slight increase of +0.5%, while the trend direction over the last eight quarters is also not available. The combination of a very low gross margin (11th percentile) with only a marginal sequential improvement suggests limited near-term profitability risk, but any continued uptick could signal a slow turnaround opportunity. This metric directly contradicts a bullish outlook because the margin is extremely low versus peers, yet it does not override the overall NEUTRAL verdict, as other factors may offset this weakness.

Frequently Asked Questions

What does the Gross Margin tell investors about CMC?

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 CMC's closest peers by Gross Margin?

The closest peers by Gross Margin include: MSCI (82.7%), SYF (82.7%), EA (82.8%), THC (83.4%), INTU (83.9%).

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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.