FANGNEUTRAL

Gross Margin

37.9%

Updated 128h ago

Sector Performance

39th percentile

FANG

37.9%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after accounting for the direct costs of producing its goods or services; FANG’s current 37.9% means it retains $0.379 of each sales dollar.

That figure sits below the sector median of 44.2%, placing FANG in the 39th percentile among its peers, meaning about 61% of comparable companies have higher gross margins. The metric is on a decreasing trend over the last eight quarters: year-over-year change is not available, but quarter-over-quarter it dropped sharply by 44.8% from 68.7% to 37.9%. A low and declining gross margin often signals rising input costs, pricing pressure, or operational inefficiencies, which can increase investment risk if the trend persists. However, the overall NEUTRAL verdict is supported: the current margin is below the sector median but not critically low, and the recent plunge may reflect a one-time event rather than a structural issue, leaving the stock neither clearly undervalued nor overvalued based on this metric alone.

Frequently Asked Questions

What does the Gross Margin tell investors about FANG?

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 FANG'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.