SJMCAUTIOUS

Gross Margin

38.0%

Updated 80h ago

Sector Performance

40th percentile

SJM

38.0%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

SJM's gross margin of 38.0% means that for every dollar of sales, the company keeps 38 cents after paying the direct costs to produce its goods, giving a basic measure of production efficiency.

This sits below the sector median of 44.4%, placing the company in the 40th percentile among its peers — meaning two out of five competitors have lower margins while three out of five have higher margins. The year-over-year change, quarter-over-quarter change, and 8-quarter trend are all not available, so no forward pattern can be inferred from the single reported data point. Because the gross margin is below the peer median and no trend information exists, the current level alone suggests a potential competitive disadvantage in cost control or pricing power, which adds risk. This shortfall relative to the sector median supports the overall CAUTIOUS verdict, as the company's core profitability lags peers without any evidence of improvement.

Frequently Asked Questions

What does the Gross Margin tell investors about SJM?

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 SJM's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

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.