HMCCAUTIOUS

HMC Gross Margin Analysis

22.2%

Updated 12h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue left after paying direct production costs, so a 6.4% margin means HMC retains only $0.064 of every sales dollar before other expenses.

Sector Performance

15th percentile

HMC

22.2%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

6.4%(Aug 2026)

↑ Improving

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Deep Analysis

Gross margin is the percentage of revenue left after paying direct production costs, so a 6.4% margin means HMC retains only $0.064 of every sales dollar before other expenses.

That is far below the sector median of 36.6%, placing the company at the 5th percentile among Consumer Cyclical peers — among the weakest in its group. The trend is not available: year-over-year change is N/A and quarter-over-quarter change is N/A, so there is no direction to confirm improvement or deterioration. The combination of a very low absolute margin and no trend data signals elevated risk, because the company has little cushion to absorb cost increases or competitive pressure. This low level alone contradicts any optimism and directly supports the overall CAUTIOUS verdict. For a non-expert investor, this metric points to thin profitability that needs close monitoring.

Frequently Asked Questions

What does the Gross Margin tell investors about HMC?

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 HMC's closest peers by Gross Margin?

The closest peers by Gross Margin include: HII (12.6%), VLO (12.3%), EXPD (12.3%), LMT (12.2%), EPD (12.1%).

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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.