PGNEUTRAL

Gross Margin

49.5%

Higher than 42% of Consumer Defensive sector peers

Updated 197h ago

Sector Performance

42th percentile

49.5%

Sector Median

51.6%

Sector Avg

47.7%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying direct production costs, so a 49.5% figure means Procter & Gamble retains about 49.5 cents of every dollar in sales before other expenses.

This sits slightly below the Consumer Defensive sector median of 51.6%, placing PG in the 42nd percentile among peers—meaning it trails more than half of comparable companies in cost efficiency. There is no trend data available: both the year-over-year and quarter-over-quarter changes are reported as N/A, and only a single historical value of 49.5% exists for the last eight quarters. With no directional movement, the current level alone suggests a moderate competitive position but no clear improvement or deterioration, creating neither an immediate risk nor a compelling opportunity. Since the metric is below the sector median but not far off, it aligns with the overall NEUTRAL verdict—neither strongly supporting nor contradicting the view that the stock is fairly valued at this time.

Frequently Asked Questions

What does the Gross Margin tell investors about PG?

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 PG's Gross Margin compare to its sector?

PG's Gross Margin of 49.5% compares to a Consumer Defensive sector median of 51.6%, placing it in the 42th percentile.

Who are PG's closest peers by Gross Margin?

The closest Consumer Defensive peers by Gross Margin include: ABEV (51.6%), KDP (52.8%), CELH (48.3%), BUD (56.6%), COTY (61.8%).

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.