GENNEUTRAL

Gross Margin

78.5%

Updated 440h ago

Sector Performance

93th percentile

GEN

78.5%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying for the direct costs of producing its goods or services; a 78.5% margin means that for every dollar of sales, the company retains about 78.5 cents before other expenses.

This figure ranks in the 93rd percentile among sector peers and far exceeds the sector median of 43.4%, indicating the company operates with unusually high pricing power or cost advantage. Over the last eight quarters the metric has been stable, with no year-over-year change reported and a quarter-over-quarter increase of 5.7%. While the absolute level is very strong, the combination of a high margin and a stable trend suggests limited near-term improvement but also little risk of sudden compression. The high gross margin supports the case for operational efficiency, but the overall NEUTRAL verdict likely reflects other factors—such as revenue growth or valuation—that temper the positive signal. Therefore, this metric does not contradict the NEUTRAL stance; it reinforces that the company’s profitability at the gross level is solid, but not enough alone to shift the rating.

Frequently Asked Questions

What does the Gross Margin tell investors about GEN?

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 GEN'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.