HPQNEUTRAL

Gross Margin

20.9%

Updated 174h ago

Sector Performance

15th percentile

HPQ

20.9%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

HPQ's gross margin of 20.9% means that for every dollar of sales, the company keeps roughly 21 cents after covering the direct costs of producing its products.

This metric is well below the sector median of 44.4%, placing HPQ in the 15th percentile among its peers—meaning 85% of competitors achieve higher gross margins. The year-over-year change is not available, but the quarter-over-quarter change shows a +6.6% increase from the prior quarter's 19.6% to the current 20.9%. The combination of a low absolute margin with a recent upward move suggests potential risk from structural pricing or cost disadvantages, but the short-term improvement may offer a slight opportunity if it continues. This metric supports the overall NEUTRAL verdict, as the weak relative position is partly offset by the positive quarterly trend, leaving no clear directional signal.

Frequently Asked Questions

What does the Gross Margin tell investors about HPQ?

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 HPQ's closest peers by Gross Margin?

The closest peers by Gross Margin include: EXPD (14.0%), 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.