SRENEUTRAL

SRE Gross Margin Analysis

54.7%

Updated 225h ago·SEC filings & market data

Key Takeaway

Gross margin, the percentage of revenue left after direct production costs, stands at 54.7% for SRE.

Sector Performance

62th percentile

SRE

54.7%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

52.6%(Jun 2026)

↑ Improving

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Deep Analysis

Gross margin, the percentage of revenue left after direct production costs, stands at 54.7% for SRE.

That means for every dollar of revenue, about 54.7 cents remain to cover other expenses. This is above the sector median of 44.9%, placing SRE in the 64th percentile of sector peers, so its cost structure is more favorable than most. The trend direction is N/A, with year-over-year change of N/A and quarter-over-quarter change of N/A, so no momentum can be confirmed. The higher-than-median level suggests a competitive cost advantage, but the absence of trend data leaves the durability of that advantage unknown. This creates a neutral risk profile: the margin level is supportive, yet the missing trajectory prevents an upgrade to a positive stance. Overall, this metric aligns with the NEUTRAL verdict, as it neither strengthens nor weakens the case beyond the current assessment.

Frequently Asked Questions

What does the Gross Margin tell investors about SRE?

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 SRE'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%).

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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.