LWNEUTRAL

LW Gross Margin Analysis

20.4%

Updated 6h ago·SEC filings & market data

Key Takeaway

The Gross Margin of 21.2% means that for every dollar of revenue, LW keeps about 21.2 cents after paying the direct costs of producing its goods, with the rest going to those costs.

Sector Performance

13th percentile

20.4%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

21.2%(Jul 2026)

↓ Declining

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Deep Analysis

The Gross Margin of 21.2% means that for every dollar of revenue, LW keeps about 21.2 cents after paying the direct costs of producing its goods, with the rest going to those costs.

This figure sits far below the sector median of 43.2%, placing LW in the 17th percentile among its peer group, indicating a much less favorable cost structure relative to competitors. No trend data is available: the year-over-year and quarter-over-quarter changes are both listed as N/A, and there are no historical figures beyond the single current value. The combination of a low margin level with an unknown trend introduces uncertainty—investors cannot assess whether margins are improving or deteriorating, which adds risk without a clear signal of opportunity. This metric contradicts the overall NEUTRAL verdict, because a gross margin deep in the bottom quartile of the sector typically warrants a more cautious or negative view, all else being equal.

Frequently Asked Questions

What does the Gross Margin tell investors about LW?

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 LW's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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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.