CVXCAUTIOUS

Gross Margin

28.4%

Updated 248h ago

Sector Performance

22th percentile

CVX

28.4%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

CVX's current gross margin of 28.4% means that after subtracting the direct costs of producing its oil, gas, and refined products, the company keeps 28.4 cents of every dollar of revenue.

This is well below the sector median of 44.4%, placing CVX in the 22nd percentile among its peers. The year-over-year change is not available, but the quarter-over-quarter change shows a massive increase of +195.8% from the prior quarter’s 9.6% to the current 28.4%. The combination of a low absolute margin (22nd percentile) with a single-quarter spike suggests a potential turnaround opportunity, but the volatility and limited historical data create risk of a reversal. This metric supports the overall CAUTIOUS verdict, as the margin remains far below the sector norm despite the sharp improvement.

Frequently Asked Questions

What does the Gross Margin tell investors about CVX?

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 CVX'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.