SWKNEUTRAL

SWK Gross Margin Analysis

33.0%

Updated 33h ago·SEC filings & market data

Key Takeaway

Gross margin measures the portion of sales revenue a company retains after paying the direct costs of producing its goods; SWK's current 33.0% means it keeps $0.33 of every sales dollar before other expenses.

Sector Performance

26th percentile

SWK

33.0%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

30.1%(Jul 2026)

↑ Improving

📊

Deep Analysis

That level sits far below the sector median of 44.7%, placing the company in the 28th percentile among peers, so most competitors convert a larger share of revenue into gross profit. The year-over-year change is N/A, but the quarter-over-quarter change is +9.6%, driven by an improvement from 30.1% in the prior period to 33.0% now. The low level signals a structural cost disadvantage relative to peers, yet the recent jump offers a sign of near-term recovery, which tempers the downside risk. This mixed picture aligns with the overall NEUTRAL verdict: the margin is weak enough to pressure profitability but showing enough recent momentum to avoid a bearish call.

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: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

📚

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.