TDGCAUTIOUS

Gross Margin

59.4%

Updated 176h ago

Sector Performance

72th percentile

TDG

59.4%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying for the direct costs of producing its goods or services; a 59.4% margin means TDG retains roughly 59 cents of every dollar of sales as gross profit.

This figure sits well above the sector median of 43.2% and places the company in the 71th percentile among its peers, indicating superior cost efficiency relative to competitors. Trend data is limited: the year-over-year change is not available, but the quarter-over-quarter change shows an increase of +4.8%, with the margin moving up from 56.7% in the prior period. The combination of a high margin level and a positive near-term trend suggests a low risk of gross-profit erosion and a potential opportunity for sustained profitability, though the lack of longer-term history tempers that outlook. This metric supports the overall NEUTRAL verdict by highlighting a clear strength in gross profitability, but it does not single-handedly outweigh other factors that contribute to a balanced rating.

Frequently Asked Questions

What does the Gross Margin tell investors about TDG?

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 TDG'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.