SWKNEUTRAL

Gross Margin

30.1%

Updated 32h ago

Sector Performance

25th percentile

SWK

30.1%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin is the percentage of revenue a company retains after paying the direct costs of producing its goods, so SWK’s 30.1% means it keeps about 30 cents of every sales dollar before other expenses.

This is well below the sector median of 44.7%, placing the stock in the 25th percentile among peers, meaning three-quarters of sector companies have higher gross margins. No year-over-year or quarter-over-quarter changes are available, and the trend direction for the last eight quarters is also not reported, so no recent movement can be assessed. With a low margin level but no trend data, the investment risk is unclear — the company may be persistently less efficient than peers, but without a trajectory, it is impossible to know if the situation is improving or worsening. This metric contradicts the overall NEUTRAL verdict because a gross margin far below the sector median typically signals a competitive disadvantage or cost-pressure vulnerability, which would normally lean bearish, though the lack of trend prevents a stronger conclusion.

Frequently Asked Questions

What does the Gross Margin tell investors about SWK?

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 SWK's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), 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.