RMDNEUTRAL

RMD Gross Margin Analysis

62.2%

Higher than 39% of Healthcare sector peers

Updated 198h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its products, so RMD’s 62.2% means it retains $0.62 of every sales dollar before other expenses.

Sector Performance

39th percentile

RMD

62.2%

Sector Median

68.4%

Sector Avg

-59.4%

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its products, so RMD’s 62.2% means it retains $0.62 of every sales dollar before other expenses.

This sits below the healthcare sector median of 68.3% and places RMD at the 42nd percentile among peers, indicating a slightly weaker cost position than most comparable companies. The trend is not available: both the year-over-year change and quarter-over-quarter change are listed as N/A, so there is no evidence of improving or deteriorating margin momentum. With a level below the sector median and no trend data, the investment risk is that RMD’s profitability could be under structural pressure, but the gap is modest, leaving room for opportunity if the margin stabilizes or improves. The overall NEUTRAL verdict is supported: the gross margin neither signals a clear competitive advantage nor a serious red flag, given the unknown trend. This metric aligns with a wait-and-see stance rather than a bullish or bearish one.

Frequently Asked Questions

What does the Gross Margin tell investors about RMD?

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 RMD's Gross Margin compare to its sector?

RMD's Gross Margin of 62.2% compares to a Healthcare sector median of 68.4%, placing it in the 39th percentile.

Who are RMD's closest peers by Gross Margin?

The closest Healthcare peers by Gross Margin include: BLUE (68.4%), AMGN (68.2%), BSX (69.4%), TECH (66.9%), EXAS (70.1%).

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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.