NIOCAUTIOUS

NIO Gross Margin Analysis

19.0%

Higher than 26% of Consumer Cyclical sector peers

Updated 299h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue left after covering the direct costs of making or selling the product, so NIO keeps 19.0 cents of each dollar of sales before other expenses.

Sector Performance

26th percentile

NIO

19.0%

Sector Median

34.2%

Sector Avg

26.4%

Prior Period

17.5%(May 2026)

↑ Improving

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Deep Analysis

Gross margin is the percentage of revenue left after covering the direct costs of making or selling the product, so NIO keeps 19.0 cents of each dollar of sales before other expenses.

That figure sits well below the sector median of 33.7%, placing the company at the 28th percentile among its consumer cyclical peers, meaning about 72% of peers achieve a higher margin. No trend can be assessed because the year-over-year change is N/A, the quarter-over-quarter change is N/A, and historical data covers only the current value of 19.0%. With a margin roughly 15 percentage points under the sector norm and no directional data to suggest improvement, the stock carries higher operational risk: NIO has less revenue cushion to cover fixed costs or absorb price competition. This metric supports the overall CAUTIOUS verdict, as the low margin and lack of demonstrated momentum contradict a case for near-term earnings strength.

Frequently Asked Questions

What does the Gross Margin tell investors about NIO?

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 NIO's Gross Margin compare to its sector?

NIO's Gross Margin of 19.0% compares to a Consumer Cyclical sector median of 34.2%, placing it in the 26th percentile.

Who are NIO's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BABA (34.5%), AEO (33.9%), URBN (36.6%), GME (40.7%), RH (41.4%).

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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.