SRENEUTRAL

Gross Margin

52.6%

Updated 606h ago

Sector Performance

62th percentile

SRE

52.6%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

SRE's gross margin of 52.6% means that for every dollar of revenue, the company keeps $0.526 after subtracting the direct costs of producing its goods or services.

This figure sits above the sector median of 44.0%, placing SRE in the 61st percentile among its peers. The metric has been trending upward over the last eight quarters; while a year-over-year comparison is not available, the quarter-over-quarter change is a gain of +47.8%. The combination of a margin above the sector median and a clear increasing trend suggests that SRE's cost efficiency is improving, which can reduce downside risk if revenue softens. This favorable gross-margin performance supports a view of stable profitability, but it does not override the stock's overall NEUTRAL verdict. The metric is a positive signal, yet the neutral rating implies other factors—such as valuation or growth expectations—balance the outlook.

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: EXPD (14.0%), 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.