GMCAUTIOUS

GM Gross Margin Analysis

7.6%

Updated 201h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue left after paying the direct costs of making a vehicle, so GM's 7.6% means only about 7.6 cents per sales dollar remain to cover overhead and profit.

Sector Performance

1th percentile

7.6%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

11.5%(Jul 2026)

↓ Declining

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Deep Analysis

Gross margin is the percentage of revenue left after paying the direct costs of making a vehicle, so GM's 7.6% means only about 7.6 cents per sales dollar remain to cover overhead and profit.

This is far below the sector median of 44.9%, placing GM at the 2th percentile among peers, meaning nearly all rivals earn a higher gross margin. The trend data are incomplete: the year-over-year change is N/A, but the quarter-over-quarter change shows a 33.9% drop from 11.5% to 7.6% in the most recent period, and the eight-quarter trend direction is also N/A. A low gross margin combined with a steep quarterly decline signals compressed profitability and pricing pressure, raising the risk of weak earnings and limited cash generation. This metric directly contradicts any optimistic case and aligns with the overall CAUTIOUS verdict, as the current margin level and its recent erosion both point to elevated business risk.

Frequently Asked Questions

What does the Gross Margin tell investors about GM?

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 GM's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

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.