MHKNEUTRAL

MHK Gross Margin Analysis

23.5%

Updated 252h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after paying for the direct costs of producing its goods; MHK’s current 23.5% means less than a quarter of sales becomes gross profit.

Sector Performance

18th percentile

MHK

23.5%

Sector Median

44.6%

Sector Avg

45.5%

Prior Period

24.6%(Apr 2026)

↓ Declining

📊

Deep Analysis

This is far below the sector median of 44.7%, placing the company in the 19th percentile among its peers. No year-over-year or quarter-over-quarter change is provided, so there is no trend data to assess. The combination of a low gross-margin level and absent trend suggests potential competitive or cost disadvantages, but without direction the risk is unclear. This metric contradicts the overall NEUTRAL verdict because a gross margin this low relative to peers typically signals higher risk, yet the lack of trend data prevents a more negative assessment.

Frequently Asked Questions

What does the Gross Margin tell investors about MHK?

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 MHK's closest peers by Gross Margin?

The closest peers by Gross Margin include: MSCI (82.7%), SYF (82.7%), EA (82.8%), THC (83.4%), INTU (83.9%).

📚

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.