SMNEUTRAL

SM Gross Margin Analysis

46.8%

Updated 35h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after paying direct production costs; 46.8% means SM retains $0.468 of each sales dollar before other expenses.

Sector Performance

50th percentile

46.8%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

41.8%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying direct production costs; 46.8% means SM retains $0.468 of each sales dollar before other expenses.

This sits just above the sector median of 46.4%, placing SM at the 51st percentile among peers — essentially middle-of-the-pack. The trend direction over the last 8 quarters is N/A, with no year-over-year figure available; quarter-over-quarter, gross margin rose 12.0%, from 41.8% to 46.8%. The current level is close to the peer norm, and the single-quarter gain points to recent improvement, but the missing longer-term history limits confidence in its persistence. For an investor, this combination offers mild short-term positive momentum without a clear basis for expecting sustained outperformance. This metric supports the overall NEUTRAL verdict: gross margin is neither a strength nor a weakness, aligning with a hold-steady assessment.

Frequently Asked Questions

What does the Gross Margin tell investors about SM?

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 SM'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.