CMINEUTRAL

CMI Gross Margin Analysis

26.7%

Updated 57h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after subtracting the direct costs of producing goods, and CMI's current 26.7% means it keeps less than a third of each sales dollar before other expenses.

Sector Performance

19th percentile

CMI

26.7%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

26.1%(Aug 2026)

↑ Improving

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Deep Analysis

Gross margin is the share of revenue left after subtracting the direct costs of producing goods, and CMI's current 26.7% means it keeps less than a third of each sales dollar before other expenses.

This sits well below the sector median of 46.4%, placing the company at the 19th percentile among peers. The metric is stable over the last eight quarters, with no year-over-year change available and a quarter-over-quarter increase of +2.3%, supported by historical values of 26.7%, 26.1%, and 26.7% (most recent first). The low level versus peers suggests persistent cost or pricing pressure, while the stable trend indicates no recent deterioration. That combination points to a limited opportunity for margin-driven upside but also no acute near-term earnings risk. This supports the overall NEUTRAL verdict: the gross margin neither strengthens the case for buying nor raises immediate red flags.

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: 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.