TAPCAUTIOUS

Gross Margin

38.2%

Updated 128h ago

Sector Performance

40th percentile

TAP

38.2%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

TAP’s gross margin of 38.2% means that for every dollar of revenue, the company keeps 38.2 cents after covering the direct costs of making its products — the rest goes to those costs.

This figure sits below the sector median of 44.2%, placing TAP in the 40th percentile among its peers, meaning 60% of competitors have a higher gross margin. Trend data is not available: the year-over-year change, quarter-over-quarter change, and direction over the last eight quarters are all marked N/A. Because the current margin is below the sector average and there is no trend to indicate improvement or deterioration, the risk lies in TAP’s weaker cost structure relative to peers, though the absence of historical changes means the trajectory is uncertain. This metric supports the overall CAUTIOUS verdict, as the below-median margin signals less pricing power or higher input costs without any evidence of a positive shift.

Frequently Asked Questions

What does the Gross Margin tell investors about TAP?

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 TAP'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.