GISCAUTIOUS

Gross Margin

30.8%

Updated 584h ago

Sector Performance

25th percentile

GIS

30.8%

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 the direct costs to produce its goods.

At 30.8%, General Mills retains just under 31 cents of every sales dollar after cost of goods sold. That is well below the sector median of 43.8%, placing the company in the 26th percentile among its peers — meaning three-quarters of comparable firms have a higher gross margin. The year-over-year change is not available, but the quarter-over-quarter change shows a rise of 0.7 percentage points from 30.6% to 30.8%. A below-median gross margin combined with a slight upward tick suggests the company's pricing power or cost efficiency is below par but may be stabilizing. For an investor, this level signals higher vulnerability to input cost increases, while the small positive trend reduces near-term downside risk. Together, this metric supports the overall NEUTRAL verdict — the gross margin is a relative weakness, but the incremental improvement prevents it from being a clear negative.

Frequently Asked Questions

What does the Gross Margin tell investors about GIS?

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 GIS'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.