ESNEUTRAL

Gross Margin

88.7%

Updated 464h ago

Sector Performance

99th percentile

88.7%

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 direct production costs, so an 88.7% figure means the company keeps nearly 89 cents of every dollar earned before other expenses.

This is far above the sector median of 43.4%, placing the company in the 98th percentile among its peers. The metric has been increasing over the last eight quarters, with the latest quarter-over-quarter change of +192.7% (year-over-year change is not available). A very high gross margin combined with a sharp upward trend suggests the company has strong pricing power or cost advantages, which can reduce business risk but also raises the question of sustainability after such a large jump. The extreme level and rapid improvement could signal a quality improvement, but the overall NEUTRAL verdict likely reflects uncertainty about whether this spike is temporary or a new norm.

Frequently Asked Questions

What does the Gross Margin tell investors about ES?

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 ES'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.