OKENEUTRAL

Gross Margin

22.7%

Updated 224h ago

Sector Performance

17th percentile

OKE

22.7%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying direct production costs, so a 22.7% margin means OKE retains about 23 cents of every dollar of sales.

This figure is well below the sector median of 44.4% and places the stock at the 17th percentile among its industry peers, indicating weaker cost efficiency relative to most competitors. No trend data is available: the year-over-year change is listed as N/A and the quarter-over-quarter change is also N/A, so there is no way to assess whether margins are improving or deteriorating. The combination of a low absolute margin with no historical trend creates uncertainty — the current level points to a competitive disadvantage, but without movement data, the investment risk or opportunity cannot be gauged directionally. This metric generally contradicts the overall NEUTRAL verdict because a gross margin that far below the sector median suggests below-average profitability, yet the lack of trend information prevents a stronger negative tilt.

Frequently Asked Questions

What does the Gross Margin tell investors about OKE?

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 OKE'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.