PCARNEUTRAL

Gross Margin

16.7%

Updated 368h ago

Sector Performance

9th percentile

PCAR

16.7%

Sector Median

44.7%

Sector Avg

45.2%

📊

Deep Analysis

PCAR’s gross margin of 16.7% means that for every dollar of revenue, the company keeps about 16.7 cents after covering the direct costs of manufacturing its trucks and parts.

This is far below the sector median of 43.9%, placing PCAR in the 10th percentile among its peers — meaning 90% of comparable companies have a higher gross margin. A year-over-year change and a quarter-over-quarter change are both listed as N/A, and there is no trend data available for the last eight quarters, so no directional shift can be assessed. The combination of a low gross margin level with no observable trend suggests a persistent cost or pricing disadvantage, which introduces downside risk if market conditions worsen. This metric contradicts the overall NEUTRAL verdict because the gross margin is a clear weak point that typically warrants a more cautious view.

Frequently Asked Questions

What does the Gross Margin tell investors about PCAR?

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 PCAR'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.