IMOCAUTIOUS

IMO Gross Margin Analysis

18.5%

Updated 83h ago·SEC filings & market data

Key Takeaway

Current gross margin of 18.5% means for every dollar of revenue, the company keeps 18.5 cents after covering direct production costs.

Sector Performance

11th percentile

IMO

18.5%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

13.4%(Aug 2026)

↑ Improving

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Deep Analysis

Current gross margin of 18.5% means for every dollar of revenue, the company keeps 18.5 cents after covering direct production costs.

That is far below the sector median of 46.4%, placing IMO in the 11th percentile among peers — meaning roughly 89% of comparable companies have a higher margin. Trend data are limited: the year-over-year change is N/A, but the quarter-over-quarter change is +38.1%, moving from 13.4% to 18.5% in the most recent period. The combination of a low absolute level and a single quarter of improvement suggests the company is still structurally less profitable than its sector, though the recent uptick offers a possible near-term tailwind. Given the wide gap to the sector median, the margin profile remains a weak point and aligns with elevated risk. This metric therefore supports the overall CAUTIOUS verdict, as the improvement is not yet enough to close the competitive disadvantage.

Frequently Asked Questions

What does the Gross Margin tell investors about IMO?

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 IMO'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.