CPBNEUTRAL

Gross Margin

27.5%

Higher than 25% of Consumer Defensive sector peers

Updated 8h ago

Sector Performance

25th percentile

CPB

27.5%

Sector Median

51.6%

Sector Avg

47.7%

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Deep Analysis

Gross margin, the percentage of revenue left after subtracting the cost of goods sold, sits at 27.5% for CPB.

This means the company keeps only $0.275 of every sales dollar before other expenses. Compared to peers in the Consumer Defensive sector, where the median gross margin is 51.6%, CPB ranks in the 25th percentile—meaning 75% of sector peers have a higher margin. The year-over-year and quarter-over-quarter changes are both listed as N/A, so there is no observable trend from the provided data. The combination of a gross margin far below the sector median and an absent trend signals that CPB’s cost structure may be less efficient than competitors, but without movement in either direction, the risk profile remains unclear. This metric contradicts an outright bullish view but does not directly challenge a NEUTRAL verdict, as the low level is offset by the lack of deterioration. Overall, the weak margin supports a cautious stance consistent with the NEUTRAL rating.

Frequently Asked Questions

What does the Gross Margin tell investors about CPB?

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.

How does CPB's Gross Margin compare to its sector?

CPB's Gross Margin of 27.5% compares to a Consumer Defensive sector median of 51.6%, placing it in the 25th percentile.

Who are CPB's closest peers by Gross Margin?

The closest Consumer Defensive peers by Gross Margin include: ABEV (51.6%), KDP (52.8%), PG (49.5%), CELH (48.3%), BUD (56.6%).

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.