NINEUTRAL

Gross Margin

51.0%

Updated 128h ago

Sector Performance

60th percentile

51.0%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

A company's gross margin of 51.0% means that for every dollar of revenue, it keeps 51 cents after paying the direct costs of producing its goods or services.

This margin sits above the sector median of 44.2%, placing the company in the 61st percentile among its peers — a respectable position relative to the industry. However, the trend is decreasing: over the last eight quarters the metric has declined, and the most recent quarter-over-quarter change was -14.3% (from 59.5% to 51.0%). A year-over-year change was not provided. The combination of a still-above-median level with a sharp recent drop signals potential risk, as the company may be losing pricing power or facing rising costs faster than competitors. This mixed picture — strong relative standing but deteriorating trajectory — aligns with the overall NEUTRAL verdict, neither clearly supporting a bullish nor bearish case.

Frequently Asked Questions

What does the Gross Margin tell investors about NI?

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 NI'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.