SGCAUTIOUS

SG Gross Margin Analysis

13.1%

Updated 11h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after covering the direct costs of producing goods or services — here, 13.1% means that for every dollar of sales, about 13 cents remains before other expenses.

Sector Performance

5th percentile

13.1%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

10.0%(Jul 2026)

↑ Improving

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Deep Analysis

That figure sits far below the sector median of 46.4%, placing the company in the 6th percentile among peers. The trend data is limited: the year-over-year change is not available, while the quarter-over-quarter change shows a +31.0% move, driven by gross margin rising from 10.0% to 13.1% in the most recent quarter. The combination of a very low absolute level with a recent improvement suggests the company is still far from competitive profitability, though the uptick offers a small counter to deterioration. This metric contradicts any upbeat outlook and directly supports the overall CAUTIOUS verdict, as such thin margins leave little room for error and expose the firm to cost shocks that stronger peers could absorb.

Frequently Asked Questions

What does the Gross Margin tell investors about SG?

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 SG'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.