PAASNEUTRAL

PAAS Gross Margin Analysis

52.7%

Higher than 60% of Basic Materials sector peers

Updated 9h ago·SEC filings & market data

Key Takeaway

PAAS's gross margin of 52.7% means that for every dollar of revenue, the company keeps 52.7 cents after subtracting the direct costs of producing its goods—a measure of production efficiency.

Sector Performance

60th percentile

PAAS

52.7%

Sector Median

42.8%

Sector Avg

-54506.6%

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Deep Analysis

PAAS's gross margin of 52.7% means that for every dollar of revenue, the company keeps 52.7 cents after subtracting the direct costs of producing its goods—a measure of production efficiency.

Among Basic Materials peers, this is well above the sector median of 44.1%, placing PAAS in the 64th percentile. However, year-over-year change, quarter-over-quarter change, and the trend over the last eight quarters are all reported as N/A, so no directional data is available to assess recent performance. The high current margin relative to peers suggests a competitive cost advantage, but the complete lack of trend information creates uncertainty about whether this level is sustainable or deteriorating. This metric supports the overall NEUTRAL verdict because a strong gross margin alone—without evidence of consistency or improvement—does not provide enough conviction for an outright bullish or bearish case.

Frequently Asked Questions

What does the Gross Margin tell investors about PAAS?

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 PAAS's Gross Margin compare to its sector?

PAAS's Gross Margin of 52.7% compares to a Basic Materials sector median of 42.8%, placing it in the 60th percentile.

Who are PAAS's closest peers by Gross Margin?

The closest Basic Materials peers by Gross Margin include: BHP (42.8%), PPG (40.2%), ALB (35.1%), APD (31.1%), AG (55.3%).

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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.