SITMCAUTIOUS

SITM Gross Margin Analysis

63.0%

Updated 11h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after accounting for the direct costs of producing its goods; SITM's current 59.0% means it retains $0.59 of each sales dollar to cover other expenses.

Sector Performance

73th percentile

SITM

63.0%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

59.0%(Jul 2026)

↑ Improving

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Deep Analysis

This trails the technology sector median of 65.2%, placing SITM in the 45th percentile among its peers. No trend data is available: the year-over-year change and quarter-over-quarter change are both listed as N/A, and only a single historical value of 59.0% is provided. With a gross margin below the sector median and no trend to show improvement or deterioration, the metric offers limited directional insight but suggests SITM currently operates with less pricing power or higher production costs than half its peers. This below-average level, combined with the absence of trend evidence, points to a risk that profitability from core operations may lag the industry. The cautious overall verdict is supported, as SITM's gross margin does not show a competitive advantage relative to the sector median.

Frequently Asked Questions

What does the Gross Margin tell investors about SITM?

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 SITM'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.