MLMNEUTRAL

Gross Margin

22.8%

Updated 104h ago

Sector Performance

18th percentile

MLM

22.8%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin, the percentage of revenue left after subtracting the cost of goods sold, currently sits at 22.8%, meaning MLM retains about $0.23 of each dollar of sales before other expenses.

This figure is far below the sector median of 44.2%, placing MLM in the 18th percentile among its sector peers, indicating that its cost structure is less efficient than most competitors. The year-over-year change, quarter-over-quarter change, and trailing eight-quarter trend are all listed as N/A because the available historical data is limited to a single period, providing no basis for directional analysis. With no trend to assess, the low absolute margin relative to peers suggests a structural disadvantage that could pressure profitability if costs rise, presenting a risk for investors seeking margin expansion. This metric contradicts the overall NEUTRAL verdict, as a gross margin in the bottom quintile of the sector typically signals a weaker competitive position that would warrant a more cautious stance.

Frequently Asked Questions

What does the Gross Margin tell investors about MLM?

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 MLM's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), 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.