NUENEUTRAL

Gross Margin

15.8%

Updated 296h ago

Sector Performance

8th percentile

NUE

15.8%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps as profit after paying for the direct costs of producing its goods, so NUE's 15.8% means it retains $0.158 of each sales dollar for these costs.

That figure sits well below the sector median of 43.9%, placing NUE in the 8th percentile among its peers — meaning 92% of comparable companies have higher gross margins. The year-over-year and quarter-over-quarter changes, as well as the eight-quarter trend, are all marked as not applicable, so no direction can be inferred from recent movement. Because the margin is low relative to the sector and no trend data exists, the current level alone suggests a structural cost disadvantage that could amplify investment risk if it persists. This metric does not directly support the overall NEUTRAL verdict, as the low margin is a potential negative; however, the neutral rating likely accounts for other factors that may offset this weakness.

Frequently Asked Questions

What does the Gross Margin tell investors about NUE?

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 NUE'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.