DISNEUTRAL

DIS Gross Margin Analysis

36.8%

Higher than 13% of Communication Services sector peers

Updated 108h ago·SEC filings & market data

Key Takeaway

A company's gross margin is the percentage of revenue left after subtracting the cost of goods sold, showing how efficiently it produces its core products or services.

Sector Performance

13th percentile

DIS

36.8%

Sector Median

53.0%

Sector Avg

58.3%

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Deep Analysis

A company's gross margin is the percentage of revenue left after subtracting the cost of goods sold, showing how efficiently it produces its core products or services.

Disney's current gross margin of 36.8% is well below the Communication Services sector median of 54.0%, placing it in the 12th percentile among peers — meaning 88% of competitors have higher gross margins. Because only a single data point (36.8%) is available, there is no year-over-year or quarter-over-quarter change to assess, so the trend direction is marked as not applicable. A low margin with no trend history implies baseline risk: the company may face structural cost pressures or pricing disadvantages, but without a trend, there is no evidence of deterioration or improvement. This weak margin level does not support a bullish case and instead aligns with the NEUTRAL overall verdict, as it highlights a competitive disadvantage that warrants caution but lacks the momentum to shift the rating decisively.

Frequently Asked Questions

What does the Gross Margin tell investors about DIS?

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 DIS's Gross Margin compare to its sector?

DIS's Gross Margin of 36.8% compares to a Communication Services sector median of 53.0%, placing it in the 13th percentile.

Who are DIS's closest peers by Gross Margin?

The closest Communication Services peers by Gross Margin include: TWTR (54.0%), NFLX (51.9%), DASH (50.6%), SNAP (56.5%), TWLO (48.6%).

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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.