EDNEUTRAL

Gross Margin

54.6%

Updated 29h ago

Sector Performance

64th percentile

54.6%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

ED's current gross margin of 54.6% means that for every dollar of revenue, the company retains $0.546 after paying the direct costs of producing its goods or services — a measure of core profitability.

This figure sits above the sector median of 44.7%, placing ED in the 64th percentile among its sector peers, indicating a better-than-average cost efficiency. The trend is marked as N/A because only a single quarterly value is available; there are no year-over-year or quarter-over-quarter changes reported to assess direction. The combination of a high relative gross margin with no trend data implies a neutral risk profile — the strong level is a positive, but the lack of recent movement provides no signal of improving or eroding profitability. This metric supports the overall NEUTRAL verdict, as the elevated margin alone does not warrant an upgrade or downgrade without additional context on sustainability.

Frequently Asked Questions

What does the Gross Margin tell investors about ED?

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 ED's closest peers by Gross Margin?

The closest peers by Gross Margin include: EXPD (14.0%), 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.