SONEUTRAL

Gross Margin

46.5%

Updated 32h ago

Sector Performance

53th percentile

46.5%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin is the percentage of revenue that remains after subtracting the direct costs of producing goods or services; SO's current 46.5% means for every dollar of revenue, about 46.5 cents is gross profit.

This exceeds the sector median of 44.7%, placing SO in the 53rd percentile among its sector peers — slightly above average. The year-over-year change is unavailable, the quarter-over-quarter change is unavailable, and the trend over the last eight quarters is unavailable because only a single historical value (46.5%) was provided, so no directional pattern can be assessed. With a gross margin above the sector median but no trend data to indicate improvement or deterioration, the risk-return profile is neutral: the level is solid relative to peers, but the lack of historical context offers no signal of momentum. This directly supports the overall NEUTRAL verdict, as the metric shows a typical position within the sector without any clear positive or negative shift to warrant a different rating.

Frequently Asked Questions

What does the Gross Margin tell investors about SO?

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 SO'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.