WATNEUTRAL

Gross Margin

46.4%

Updated 200h ago

Sector Performance

52th percentile

WAT

46.4%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company retains after covering the direct costs of producing its goods or services, with 46.4% indicating that for every dollar of sales, roughly 46 cents remains to cover other expenses and profit.

This figure sits above the sector median of 44.4%, placing WAT in the 53rd percentile among its peers—meaning it performs slightly better than about half of comparable companies. While no year-over-year or longer-term trend data is available, the most recent quarter-over-quarter change of -1.3% reflects a decline from the prior period’s 47.0% to the current 46.4%. The combination of a margin moderately above the sector median coupled with a quarterly dip suggests a narrow cushion that could erode further, presenting a mild risk if the decline continues, but no clear opportunity given the limited historical context. This metric generally supports the overall NEUTRAL verdict, as the level is decent relative to peers but the recent contraction offers no strong reason to be bullish or bearish.

Frequently Asked Questions

What does the Gross Margin tell investors about WAT?

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 WAT'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.