SWKSCAUTIOUS

Gross Margin

40.8%

Updated 102h ago

Sector Performance

45th percentile

SWKS

40.8%

Sector Median

44.7%

Sector Avg

45.2%

📊

Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying for the direct costs of producing its products, with 40.8% meaning SWKS retains about 40.8 cents from each dollar of sales.

This is below the sector median of 44.2%, placing the company at the 46th percentile among its peers, indicating it is slightly less efficient at generating profit from production than the typical competitor. No historical trend data is available—the year-over-year and quarter-over-quarter changes are both reported as N/A, so there is no basis to assess whether this metric is improving or deteriorating. The combination of a below-median gross margin with no trend information creates uncertainty about the company’s cost structure and competitive position, which adds to investment risk rather than providing a clear opportunity. This metric supports the overall CAUTIOUS verdict, as the current margin level lags the sector without any directional data to suggest a turnaround.

Frequently Asked Questions

What does the Gross Margin tell investors about SWKS?

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 SWKS'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.