MKCNEUTRAL

MKC Gross Margin Analysis

40.2%

Updated 249h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after paying the direct costs of producing its goods; at 40.2%, MKC retains roughly 40 cents of every sales dollar for overhead and profit.

Sector Performance

40th percentile

MKC

40.2%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

37.8%(Jun 2026)

↑ Improving

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Deep Analysis

This figure sits below the sector median of 44.7%, placing the company in the 44th percentile among its peers — meaning 56% of competitors have a higher gross margin. Year-over-year change is not available, but the metric rose 6.3% quarter-over-quarter from 37.8% to 40.2%, though a longer eight-quarter trend is also unavailable. The combination of a gross margin below the sector median with a recent quarterly improvement suggests a potential narrowing of the gap, but the lack of a sustained trend leaves the risk of competitive pressure still present. This metric neither supports nor contradicts the overall NEUTRAL verdict — the below-median level is a concern, while the sharp quarterly uptick provides a reason for caution rather than conviction.

Frequently Asked Questions

What does the Gross Margin tell investors about MKC?

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 MKC'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.