NWSNEUTRAL

Gross Margin

50.8%

Updated 1616h ago

Sector Performance

60th percentile

NWS

50.8%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

# Gross Margin Analysis

NWS generates $0.513 in gross profit for every dollar of revenue, indicating strong pricing power and cost management relative to its sales. The company's 51.3% gross margin outperforms the sector median of 41.3% by 10 percentage points, placing it at the 62nd percentile among peers and suggesting above-average operational efficiency. The metric has remained flat over the last four quarters at 51.3%, showing stability but no momentum in either direction. This steady above-median performance suggests NWS maintains a competitive cost structure, though the lack of improvement leaves limited upside from margin expansion. For investors, the stable margin provides confidence in baseline profitability, though valuation and growth prospects should be evaluated separately to determine overall attractiveness.

Frequently Asked Questions

What does the Gross Margin tell investors about NWS?

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 NWS'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.