WMBCAUTIOUS

Gross Margin

62.3%

Updated 246h ago

Sector Performance

77th percentile

WMB

62.3%

Sector Median

44.7%

Sector Avg

45.2%

📊

Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying for the direct costs of producing its goods or services.

WMB's current gross margin of 62.3% means that for every dollar of sales, roughly 62 cents remain to cover operating expenses and profit. This is well above the sector median of 44.4%, placing WMB in the 76th percentile among its peers — a strong relative performance. Over the last eight quarters the trend direction has been increasing, though the year-over-year change is not available and the most recent quarter-over-quarter change is a sharp decline of -24.1%, from 82.1% to 62.3%. The combination of a high absolute gross margin with a recent steep quarterly drop suggests that while the company's underlying profitability relative to peers remains favorable, the sudden compression warrants monitoring for potential cost or pricing pressures. This mixed signal — strong level but volatile short-term movement — supports the overall CAUTIOUS verdict by highlighting a positive attribute that is currently offset by an abrupt reversal.

Frequently Asked Questions

What does the Gross Margin tell investors about WMB?

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 WMB's closest peers by Gross Margin?

The closest peers by Gross Margin include: EXPD (14.0%), 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.