STTNEUTRAL

STT Gross Margin Analysis

67.4%

Updated 3033h ago·SEC filings & market data

Key Takeaway

# Gross Margin Analysis: STT STT maintains a gross margin of 67.4%, meaning the company retains $0.67 in gross profit for every dollar of revenue after paying direct costs of goods sold.

Sector Performance

79th percentile

STT

67.4%

Sector Median

46.6%

Sector Avg

47.6%

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Deep Analysis

# Gross Margin Analysis: STT

STT maintains a gross margin of 67.4%, meaning the company retains $0.67 in gross profit for every dollar of revenue after paying direct costs of goods sold. This substantially outperforms the sector median of 41.3%, positioning STT in the 82nd percentile among sector peers—indicating superior pricing power or cost efficiency relative to competitors. The gross margin has remained flat at 67.4% over the last two quarters, suggesting stable operational performance without recent improvement or deterioration. While this elevated margin demonstrates the company's ability to generate substantial profits from its core operations, it does not necessarily translate to outperformance on other valuation or growth metrics, which likely explains the neutral stance on the stock.

Frequently Asked Questions

What does the Gross Margin tell investors about STT?

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 STT'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.