DTECAUTIOUS

Gross Margin

20.3%

Updated 440h ago

Sector Performance

15th percentile

DTE

20.3%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company retains after paying for the direct costs of producing its goods or services, so DTE's 20.3% means it keeps about 20 cents of every dollar of sales for overhead and profit.

That figure sits well below the sector median of 43.4%, placing DTE in the 16th percentile among peers — meaning 84% of competitors have higher gross margins. The metric is trending downward over the last eight quarters, with no year-over-year comparison available but a steep quarter-over-quarter decline of 41.3% from 34.6% to 20.3%. A low and falling gross margin suggests the company faces pressure on production costs or pricing power, which could squeeze profitability and increase investment risk if the trend continues. The sector-relative underperformance and negative momentum indicate weaker competitive positioning. This combination supports the overall NEUTRAL verdict, as the poor gross margin level and trend are offsetting factors that neither strongly recommend buying nor selling the stock on this measure alone.

Frequently Asked Questions

What does the Gross Margin tell investors about DTE?

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 DTE'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.