DECAUTIOUS

DE Gross Margin Analysis

36.9%

Updated 33h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after covering the cost of goods sold — 36.9% means DE retains $0.369 of every dollar in sales as gross profit.

Sector Performance

32th percentile

36.9%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

38.2%(May 2026)

↓ Declining

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after covering the cost of goods sold — 36.9% means DE retains $0.369 of every dollar in sales as gross profit.

This level sits below the sector median of 44.6%, placing DE in the 35th percentile among its peers, indicating weaker cost efficiency relative to the industry. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 3.4%, narrowing the available data to a single sequential drop from the prior quarter's 38.2%. The combination of a below-median gross margin and a recent quarterly decline suggests heightened near-term pressure on profitability, increasing investment risk. This metric contradicts a bullish outlook and directly supports the overall CAUTIOUS verdict, as both the level and direction point to competitive cost disadvantages.

Frequently Asked Questions

What does the Gross Margin tell investors about DE?

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 DE'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.