NRGCAUTIOUS

Gross Margin

13.6%

Updated 78h ago

Sector Performance

6th percentile

NRG

13.6%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

NRG's gross margin of 13.6% means that after paying the direct costs of producing its energy, only 13.6 cents of every dollar of revenue remains as profit from core operations.

This is well below the sector median of 44.4%, placing NRG in the 6th percentile among its peers — meaning 94% of competitors have a higher gross margin. The year-over-year change is not available, but the quarter-over-quarter change is +63.9%, rising from 8.3% to 13.6% in the most recent period. The combination of a very low absolute margin with a large recent improvement signals a potential turnaround opportunity, but the level remains far from the sector average, implying persistent cost or pricing disadvantages. This metric supports the overall CAUTIOUS verdict, as the gross margin is still weak even after the quarterly jump and lags far behind the sector.

Frequently Asked Questions

What does the Gross Margin tell investors about NRG?

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 NRG's closest peers by Gross Margin?

The closest peers by Gross Margin include: EXPD (14.0%), 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.