GMCAUTIOUS

Gross Margin

11.5%

Updated 220h ago

Sector Performance

4th percentile

11.5%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

GM's gross margin of 11.5% means that for every dollar of revenue, the company keeps 11.5 cents after paying the direct costs to produce its vehicles, with the rest going to those costs.

This is far below the sector median of 44.4%, placing GM in the 4th percentile among its peers — only a handful of competitors have a lower gross margin. The trend direction, year-over-year change, and quarter-over-quarter change are all unavailable, so no recent improvement or deterioration can be assessed. The combination of a very low gross margin and the absence of any trend data introduces risk, as the company generates thin profit from its core operations with no visible path toward recovery. This metric strongly supports the CAUTIOUS overall verdict, because such a weak margin relative to peers signals structural cost or pricing challenges that demand close monitoring.

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: EXPD (14.0%), WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%).

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.