CMINEUTRAL

Gross Margin

26.7%

Updated 8h ago

Sector Performance

21th percentile

CMI

26.7%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin is the percentage of revenue left after deducting the direct costs of producing goods — a higher number generally means stronger pricing power or cost control.

CMI’s current gross margin of 26.7% sits well below the sector median of 44.0%, placing the company in the 22nd percentile among its peers, indicating it is less profitable on a per-sale basis than most competitors. The year-over-year change is not available, but the quarter-over-quarter change shows a +16.6% improvement, rising from 22.9% to 26.7% in the most recent period. The combination of a low absolute level and a recent upward trend implies a potential opportunity if the improvement continues, but also presents risk if the gain proves temporary or if margins remain far behind the sector. This mixed picture — below-average level paired with rising momentum — supports the overall NEUTRAL verdict, as it neither clearly signals outperformance nor a definitive weakness.

Frequently Asked Questions

What does the Gross Margin tell investors about CMI?

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 CMI'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.