STTNEUTRAL

Gross Margin

67.4%

Updated 1924h ago

Sector Performance

83th percentile

STT

67.4%

Sector Median

44.7%

Sector Avg

45.2%

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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: 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.