MUNEUTRAL

Gross Margin

84.6%

Updated 80h ago

Sector Performance

96th percentile

84.6%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

MU’s gross margin of 84.6% means that for every dollar of revenue, the company keeps $0.846 after subtracting the direct costs of producing its memory and storage products.

This figure places MU in the 97th percentile among its sector peers, far above the sector median of 44.4%, indicating exceptionally strong pricing power or cost control relative to the industry. The trend for gross margin is listed as N/A, with no year-over-year or quarter-over-quarter change provided, so there is no recent directional data to evaluate. The combination of a very high current level with no trend information means investors cannot assess whether this margin is sustainable or improving, which introduces uncertainty about future profitability. This uncertainty tempers the otherwise positive signal from the absolute level, aligning with the overall NEUTRAL verdict rather than contradicting it.

Frequently Asked Questions

What does the Gross Margin tell investors about MU?

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 MU'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.