POWINEUTRAL

POWI Gross Margin Analysis

54.3%

Updated 83h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after paying direct production costs, so 54.3% means POWI retains $0.543 on every dollar of sales before other expenses.

Sector Performance

61th percentile

POWI

54.3%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

52.6%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying direct production costs, so 54.3% means POWI retains $0.543 on every dollar of sales before other expenses.

That margin sits above the sector median of 46.4%, placing POWI in the 61st percentile among peers, meaning it is more profitable per sale than most comparable companies. The year-over-year change is not available, so there is no annual comparison, but the quarter-over-quarter change is +3.2%, and the sequential figures show an increase from 52.6% to 54.3%. Because the level is above average and the most recent quarter improved, there is a mild opportunity for better cost control or pricing power, but the missing yearly data limits confidence in the trend. This single uptick does not signal a lasting shift, so the risk-reward profile remains balanced rather than clearly favorable or unfavorable. Overall, the metric supports the NEUTRAL verdict by showing a solid but not exceptional margin with only one quarters worth of directional evidence.

Frequently Asked Questions

What does the Gross Margin tell investors about POWI?

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 POWI's closest peers by Gross Margin?

The closest peers by Gross Margin include: HII (12.6%), VLO (12.3%), EXPD (12.3%), LMT (12.2%), EPD (12.1%).

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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.