TAPCAUTIOUS

TAP Gross Margin Analysis

34.3%

Updated 6h ago·SEC filings & market data

Key Takeaway

Gross margin, the share of revenue left after paying direct production costs, stands at 34.3%.

Sector Performance

27th percentile

TAP

34.3%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

38.2%(Aug 2026)

↓ Declining

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Deep Analysis

Gross margin, the share of revenue left after paying direct production costs, stands at 34.3%.

That is below the sector median of 44.9%, placing TAP in the 30th percentile of peers, meaning most competitors retain a larger cushion on each dollar of sales. The 8-quarter trend is not available, but the year-over-year change is also N/A; quarter-over-quarter, the margin fell 10.2% from 38.2% to 34.3%. A margin already low for the sector combined with a steep quarterly decline points to rising input costs or pricing pressure that could squeeze profitability. That combination raises the risk of weaker earnings ahead, creating a headwind rather than an opportunity. This metric directly supports the overall CAUTIOUS verdict, as the level and recent direction both signal deteriorating fundamentals.

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

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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.