SHWCAUTIOUS

SHW Gross Margin Analysis

49.2%

Updated 393h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying the direct costs to produce goods.

Sector Performance

53th percentile

SHW

49.2%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

49.1%(Jul 2026)

→ Stable

📊

Deep Analysis

Gross margin is the share of revenue left after paying the direct costs to produce goods.

At 49.2%, SHW keeps that portion as profit before other expenses, so a higher number generally means stronger pricing power. This sits above the 46.4% sector median, placing SHW in the 54th percentile among peers. However, the year-over-year change and quarter-over-quarter change are both N/A, meaning there is no historical trend to judge whether this level is improving or eroding. The combination of a moderately above-median margin with no trend data creates uncertainty: the current level is fine but offers no signal for future movement. This supports the overall CAUTIOUS verdict rather than contradicting it, since the lack of trend evidence prevents a confident investment case.

Frequently Asked Questions

What does the Gross Margin tell investors about SHW?

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 SHW's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

📚

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.