PSXNEUTRAL

Gross Margin

8.5%

Higher than 0% of Energy sector peers

Updated 368h ago

Sector Performance

0th percentile

PSX

8.5%

Sector Median

32.9%

Sector Avg

39.7%

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Deep Analysis

Gross margin measures the percentage of revenue a company retains after covering the direct costs of producing its goods or services; PSX's current Gross Margin of 8.5% means it keeps only $0.085 of every dollar in sales after those costs.

This is far below the Energy sector median of 32.4%, placing PSX in the 0th percentile among sector peers—meaning almost every competitor has a higher gross margin. Year-over-year change is not available, but quarter-over-quarter the metric dropped by 19.8%, from 10.6% to 8.5%. A very low gross margin that is also declining quickly suggests PSX faces intense cost pressure or pricing weakness, raising the risk of thin or negative profitability. This combination of poor level and negative trend contradicts the overall NEUTRAL verdict, as such weak margins typically signal deeper operational challenges rather than a balanced risk/reward profile.

Frequently Asked Questions

What does the Gross Margin tell investors about PSX?

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 PSX's Gross Margin compare to its sector?

PSX's Gross Margin of 8.5% compares to a Energy sector median of 32.9%, placing it in the 0th percentile.

Who are PSX's closest peers by Gross Margin?

The closest Energy peers by Gross Margin include: LNG (31.7%), PXD (34.2%), ARRY (28.2%), AR (39.8%), ENB (25.9%).

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.