TELNEUTRAL

Gross Margin

36.8%

Updated 8h ago

Sector Performance

34th percentile

TEL

36.8%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin, the percentage of revenue a company retains after deducting the cost of goods sold, stands at 36.8% for TEL.

This is below the sector median of 43.9%, placing the company in the 35th percentile among its peers. Year-over-year and quarter-over-quarter changes are not available, so no trend direction can be assessed for the last eight quarters. The combination of a below-median gross margin with no trend data creates uncertainty: the company’s profitability from core operations is weaker than most competitors, but whether this is improving or worsening is unknown. This metric does not support or contradict the NEUTRAL verdict on its own, as the absence of trend information prevents any clear risk or opportunity signal, while the level alone aligns with a cautious stance.

Frequently Asked Questions

What does the Gross Margin tell investors about TEL?

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 TEL'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.