MOCAUTIOUS

Gross Margin

73.7%

Higher than 92% of Consumer Defensive sector peers

Updated 77h ago

Sector Performance

92th percentile

73.7%

Sector Median

51.6%

Sector Avg

47.7%

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Deep Analysis

Gross margin, the percentage of revenue left after subtracting the cost of producing goods, stands at 73.7% for Altria.

This is well above the consumer defensive sector median of 51.6%, placing the company in the 92nd percentile among its peers. The margin has been rising over the last eight quarters, with a quarter-over-quarter increase of 14.1% (year-over-year change is not available). A high and increasing gross margin suggests the company has strong pricing power and efficient production, which typically reduces investment risk. However, the overall CAUTIOUS verdict on Altria is not contradicted by this metric, as other factors such as declining tobacco volumes or regulatory pressures likely offset the positive margin signal. The strong gross margin alone does not override the cautious stance, but it does highlight a relative operational strength.

Frequently Asked Questions

What does the Gross Margin tell investors about MO?

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.

How does MO's Gross Margin compare to its sector?

MO's Gross Margin of 73.7% compares to a Consumer Defensive sector median of 51.6%, placing it in the 92th percentile.

Who are MO's closest peers by Gross Margin?

The closest Consumer Defensive peers by Gross Margin include: ABEV (51.6%), KDP (52.8%), PG (49.5%), CELH (48.3%), BUD (56.6%).

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.