JCINEUTRAL

Gross Margin

36.8%

Updated 200h ago

Sector Performance

34th percentile

JCI

36.8%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying the direct costs of producing its goods or services; a 36.8% margin means JCI retains about $0.37 of every dollar of sales after covering those costs.

This sits below the sector median of 44.4%, placing JCI in the 35th percentile among its peers, meaning 65% of comparable companies have a higher gross margin. Year-over-year change is not available, but quarter-over-quarter gross margin surged by 194.4%, moving from -39.0% in the prior period to 36.8% in the current one. The combination of a current margin below the sector median with an extreme quarterly rebound creates a mixed picture: the level signals weaker cost efficiency relative to peers, while the trend suggests a potential operational turnaround or one-time event that narrowed losses. This pattern introduces uncertainty—a sustained improvement could reduce risk, but if the prior negative margin recurs, the stock remains exposed. The NEUTRAL overall verdict is supported, as the gross margin’s below-average level and volatile trend neither confirm a clear strength nor a definitive weakness.

Frequently Asked Questions

What does the Gross Margin tell investors about JCI?

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 JCI's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), 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.