DGNEUTRAL

DG Gross Margin Analysis

31.6%

Updated 84h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its goods — a higher figure generally indicates stronger pricing power or cost control.

Sector Performance

26th percentile

31.6%

Sector Median

44.6%

Sector Avg

45.5%

Prior Period

30.4%(Apr 2026)

↑ Improving

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its goods — a higher figure generally indicates stronger pricing power or cost control.

At 31.6%, the current gross margin sits below the sector median of 44.4% and ranks in the 26th percentile among sector peers, meaning three-quarters of competitors have a higher margin. No trend data is available: the year-over-year change is listed as N/A, the quarter-over-quarter change is N/A, and no historical values beyond the current 31.6% were provided. The combination of a below-median level with no trend information means there is no evidence of improvement or deterioration, leaving uncertainty about whether the margin is stable or worsening — this creates additional risk for investors who lack a direction. This metric reinforces the overall NEUTRAL verdict because the low gross margin points to a structural cost or pricing disadvantage, yet without a trend the case is not strong enough to warrant a bearish stance, aligning with the neutral view.

Frequently Asked Questions

What does the Gross Margin tell investors about DG?

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 DG's closest peers by Gross Margin?

The closest peers by Gross Margin include: MSCI (82.7%), SYF (82.7%), EA (82.8%), THC (83.4%), INTU (83.9%).

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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.