CMSNEUTRAL

CMS Gross Margin Analysis

37.7%

Updated 153h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying direct production costs, so CMS keeps 37.7 cents of every dollar in sales.

Sector Performance

35th percentile

CMS

37.7%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

39.4%(Jul 2026)

↓ Declining

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Deep Analysis

Gross margin is the share of revenue left after paying direct production costs, so CMS keeps 37.7 cents of every dollar in sales.

That is below the sector median of 46.4%, placing CMS in the 36th percentile among peers—meaning most comparable companies are more profitable at the gross-profit level. The trend data are incomplete: the year-over-year change is N/A, but the quarter-over-quarter change is -4.3%, with the margin falling from 39.4% to 37.7% in the most recent period. This combination of a level below the sector midpoint and a recent quarterly decline points to elevated margin pressure, which is a source of investment risk rather than an opportunity for margin expansion. The weakness in gross margin does not support a bullish case, but it also does not overturn the overall NEUTRAL verdict because this single metric reflects only one part of the company’s financial picture. Thus, this metric supports the NEUTRAL stance by highlighting a concern that is real yet not decisive on its own.

Frequently Asked Questions

What does the Gross Margin tell investors about CMS?

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 CMS'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.