TMNEUTRAL

TM Gross Margin Analysis

18.0%

Updated 11h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue a company keeps after paying the direct costs of producing its goods—here, 18.0% of every sales dollar remains to cover other expenses.

Sector Performance

10th percentile

18.0%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

15.1%(Aug 2026)

↑ Improving

📊

Deep Analysis

Gross margin is the share of revenue a company keeps after paying the direct costs of producing its goods—here, 18.0% of every sales dollar remains to cover other expenses.

That is far below the sector median of 46.4%, placing TM at the 10th percentile among peers, meaning most competitors retain a much larger cushion. The year-over-year change and 8-quarter trend are not available, but the quarter-over-quarter change is +19.2%, with the margin rising from 15.1% to 18.0% in the latest period. The combination of a low level and a recent upward move suggests the company is still competitively pressured, yet the QoQ improvement offers a potential path toward narrowing the gap. This level supports the overall NEUTRAL verdict: the weak margin is a risk, but the recent bounce prevents it from being a clear negative signal.

Frequently Asked Questions

What does the Gross Margin tell investors about TM?

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 TM's closest peers by Gross Margin?

The closest peers by Gross Margin include: HII (12.6%), VLO (12.3%), EXPD (12.3%), LMT (12.2%), EPD (12.1%).

📚

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.