CNCCAUTIOUS

Gross Margin

11.1%

Updated 200h ago

Sector Performance

4th percentile

CNC

11.1%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

CNC's gross margin of 11.1% means the company retains only 11.1 cents of every dollar in revenue after covering the direct costs of producing its goods or services, with the rest consumed by those costs.

Compared to the sector median of 44.4%, this figure places CNC in the 4th percentile among its peers, indicating it lags far behind most companies in profitability at the gross-profit level. No trend data is available: the year-over-year change and quarter-over-quarter change are both listed as N/A, and only a single historical value of 11.1% is provided for the last eight quarters. The combination of a very low current gross margin with no observable trend introduces uncertainty; without a direction to assess improvement or deterioration, the risk is that the current low level may persist or worsen, limiting pricing power and cost-control effectiveness. This metric strongly supports the overall CAUTIOUS verdict, as a gross margin far below the sector median and in the bottom percentile signals weak competitive positioning and potential vulnerability to input cost increases.

Frequently Asked Questions

What does the Gross Margin tell investors about CNC?

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 CNC's closest peers by Gross Margin?

The closest peers by Gross Margin include: COST (12.8%), WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%).

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.