TXTNEUTRAL

Gross Margin

18.2%

Updated 80h ago

Sector Performance

11th percentile

TXT

18.2%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

TXT’s gross margin of 18.2% means that for every dollar of sales, the company keeps about 18 cents after paying the direct costs to produce its goods—the rest covers costs of materials and labor.

This is far below the sector median of 44.4%, placing TXT in the 11th percentile among its peers, meaning roughly 89% of similar companies have higher gross margins. The year-over-year and quarter-over-quarter changes are both listed as N/A, and no trend data is available for the last eight quarters, so no historical direction can be assessed. A low gross margin at a static level suggests limited pricing power or higher input costs, but without a trend, it is unclear whether this is improving or deteriorating. The combination of a bottom-quartile margin and no trend data points to a potential risk if margins stay low, but also leaves room for uncertainty since no changes are recorded. This metric supports the overall NEUTRAL verdict because the low margin is a clear weakness, yet the lack of trend data prevents a bearish or bullish tilt.

Frequently Asked Questions

What does the Gross Margin tell investors about TXT?

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 TXT'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.