KMBCAUTIOUS

Gross Margin

36.8%

Updated 366h ago

Sector Performance

34th percentile

KMB

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 retains after paying the direct costs of producing its goods; at 36.8%, KMB keeps about $0.368 of every sales dollar for overhead and profit.

This is below the sector median of 43.9%, placing KMB in the 35th percentile among its sector peers, meaning 65% of peers have higher gross margins. The year-over-year change, quarter-over-quarter change, and trend direction over the last eight quarters are all listed as N/A, and only a single historical value of 36.8% is provided, so no trend can be assessed. The combination of a below-median gross margin with no available trend data introduces uncertainty: the current level suggests weaker pricing power or higher input costs versus peers, but without movement over time it is impossible to judge if this is improving or deteriorating. This metric supports the overall CAUTIOUS verdict on KMB, as the low relative margin indicates a structural disadvantage that warrants caution without evidence of improvement.

Frequently Asked Questions

What does the Gross Margin tell investors about KMB?

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 KMB'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.