STEMNEUTRAL

STEM Gross Margin Analysis

37.4%

Higher than 16% of Technology sector peers

Updated 142h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue remaining after subtracting the direct costs of producing goods or services; STEM’s current 37.4% means that for every dollar of revenue, 37.4 cents are left to cover operating expenses and profit.

Sector Performance

16th percentile

STEM

37.4%

Sector Median

65.2%

Sector Avg

60.2%

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Deep Analysis

Gross margin is the percentage of revenue remaining after subtracting the direct costs of producing goods or services; STEM’s current 37.4% means that for every dollar of revenue, 37.4 cents are left to cover operating expenses and profit.

This figure sits well below the sector median of 65.2%, placing STEM in the 15th percentile among technology peers, indicating its cost structure is less favorable than most comparable companies. The trend data is not available — the year-over-year change and quarter-over-quarter change are both listed as N/A, and no historical values beyond the single 37.4% figure are provided, so no directional pattern can be assessed. The combination of a low gross margin and the absence of any trend information increases uncertainty: there is no evidence of improvement or deterioration, making it difficult to gauge whether the margin is a temporary or persistent issue. This metric does not contradict the overall NEUTRAL verdict, as the weak comparative standing is offset by the lack of trend data, supporting a stance that neither recommends buying nor selling until more information emerges.

Frequently Asked Questions

What does the Gross Margin tell investors about STEM?

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.

How does STEM's Gross Margin compare to its sector?

STEM's Gross Margin of 37.4% compares to a Technology sector median of 65.2%, placing it in the 16th percentile.

Who are STEM's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: MDB (72.2%), NVDA (74.9%), SMTC (52.0%), KLIC (49.3%), GRAB (43.4%).

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.

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STEM

37.4%

Sector Median

65.2%

Sector Avg

60.2%

How STEM's Gross Margin compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.