WABNEUTRAL

WAB Gross Margin Analysis

36.5%

Updated 201h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its goods or services, so 36.5% means WAB retains $0.365 of each sales dollar before other expenses.

Sector Performance

30th percentile

WAB

36.5%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

36.0%(Jul 2026)

↑ Improving

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Deep Analysis

That level sits below the sector median of 45.1%, placing WAB at the 33rd percentile, meaning two-thirds of sector peers have a higher gross margin. The year-over-year change is N/A, but the quarter-over-quarter change is +1.4%, with the most recent values improving from 36.0% to 36.5%. Since the trend direction over the last 8 quarters is N/A, the only observable signal is a recent sequential gain, but no longer-term trajectory exists to confirm momentum. The combination of a below-median margin with a modest uptick suggests limited near-term upside but also no acute deterioration, creating a balanced risk profile. This metric does not contradict the overall NEUTRAL verdict; it supports it by showing neither a clear competitive advantage nor a pressing margin crisis.

Frequently Asked Questions

What does the Gross Margin tell investors about WAB?

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 WAB'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.