IPNEUTRAL

Gross Margin

28.9%

Updated 413h ago

Sector Performance

23th percentile

28.9%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

IP's current gross margin of 28.9% means that for every dollar of revenue, the company keeps roughly 29 cents after paying the direct costs of making its product.

That figure sits well below the sector median of 43.2% and places IP at the 24th percentile among its peers, meaning about three-quarters of similar companies have a higher gross margin. The metric has been stable over the last eight quarters — while a year-over-year comparison is unavailable, the quarter-over-quarter change shows a sharp increase of +39.6%, from 20.7% to 28.9%. This combination of a low level relative to peers alongside a stable trend suggests the company is not gaining ground on the industry average, and the single-quarter bounce back to a previous level does not indicate a sustained improvement. For an investor, the below-median gross margin implies a narrower cushion for covering operating expenses, which adds risk relative to sector peers. This metric supports the overall NEUTRAL verdict, as it reflects neither a strong competitive advantage nor an alarming deterioration.

Frequently Asked Questions

What does the Gross Margin tell investors about IP?

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 IP'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.