MCONEUTRAL

MCO Gross Margin Analysis

76.3%

Updated 201h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue left after subtracting direct production costs; at 76.3%, MCO retains $0.763 for every dollar of sales before other expenses.

Sector Performance

89th percentile

MCO

76.3%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

74.5%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin is the percentage of revenue left after subtracting direct production costs; at 76.3%, MCO retains $0.763 for every dollar of sales before other expenses.

That level is far above the sector median of 44.7%, placing MCO in the 91st percentile among peers. The 8-quarter trend direction is N/A, with no year-over-year change available; however, gross margin rose 2.4% quarter over quarter, from 74.5% to 76.3%. A high margin combined with a recent increase suggests pricing power or cost efficiency, which lowers downside risk, although the limited historical data limits confidence. This metric supports the overall NEUTRAL verdict: the strong margin is a positive factor, but the sparse trend data does not justify a more aggressive rating.

Frequently Asked Questions

What does the Gross Margin tell investors about MCO?

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 MCO'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.