DOWNEUTRAL

Gross Margin

6.5%

Updated 438h ago

Sector Performance

1th percentile

DOW

6.5%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

A gross margin of 6.5% means that for every dollar of sales, the company keeps only 6.5 cents after covering the direct costs of making its products — a very thin cushion.

Compared to the sector median of 43.4%, this figure sits at the 2nd percentile among peers, indicating the company is far less profitable on a per-sale basis than nearly all competitors. The year-over-year change is not available, and the quarter-over-quarter change is also not available, so no trend can be assessed from the provided data. This combination of an extremely low gross margin with no trend information creates a substantial risk: without knowing if the margin is stable or deteriorating, the potential for earnings pressure is high. The low margin alone contradicts the overall NEUTRAL verdict, as it suggests a structural weakness that typically warrants a cautious or negative outlook — the neutral stance may be relying on other factors not shown here.

Frequently Asked Questions

What does the Gross Margin tell investors about DOW?

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 DOW's closest peers by Gross Margin?

The closest peers by Gross Margin include: EXPD (14.0%), WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%).

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.