ETNEUTRAL

Gross Margin

18.1%

Higher than 15% of Energy sector peers

Updated 120h ago

Sector Performance

15th percentile

18.1%

Sector Median

32.4%

Sector Avg

39.3%

📊

Deep Analysis

Gross margin measures the percentage of revenue remaining after subtracting the direct costs of producing energy, reflecting pricing power and cost efficiency.

Energy Transfer LP’s current gross margin of 18.1% is well below the sector median of 32.9%, placing it in the 12th percentile among its energy-sector peers. The year-over-year change is not available, but the quarter-over-quarter decline of 23.9%—from 23.8% to 18.1%—shows a sharp contraction in the most recent period; the eight-quarter trend is also unavailable. The combination of a low absolute margin and a steep quarterly drop signals higher investment risk, as it suggests weakening pricing power or rising input costs. This metric contradicts the overall NEUTRAL verdict, because a gross margin far below the sector median and a pronounced short-term decline point to below-average profitability that warrants caution rather than a balanced outlook.

Frequently Asked Questions

What does the Gross Margin tell investors about ET?

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 ET's Gross Margin compare to its sector?

ET's Gross Margin of 18.1% compares to a Energy sector median of 32.4%, placing it in the 15th percentile.

Who are ET's closest peers by Gross Margin?

The closest Energy peers by Gross Margin include: NOG (32.9%), CVE (31.8%), LNG (31.7%), PXD (34.2%), RUN (30.4%).

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.