STXCAUTIOUS

Gross Margin

46.5%

Updated 342h ago

Sector Performance

53th percentile

STX

46.5%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

STX's current gross margin of 46.5% means that for every dollar of revenue, the company keeps $0.465 after covering the direct costs of producing its products, which is a common measure of core profitability.

This figure sits above the sector median of 43.9%, placing STX in the 54th percentile among its peers — a slightly above-average position but not a standout. The metric lacks trend data: the year-over-year change, quarter-over-quarter change, and last eight quarters of history are all unavailable, so no trajectory can be assessed. The combination of a moderate margin level with no trend direction offers no clear near-term risk signal from this metric alone, though it also provides no growth catalyst to offset broader concerns. This neutral-to-slightly-favorable comparison does not contradict the overall CAUTIOUS verdict, but it does not support it either — the lack of trend leaves the cautious stance reliant on other factors.

Frequently Asked Questions

What does the Gross Margin tell investors about STX?

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 STX'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.