WRKNEUTRAL

Gross Margin

17.3%

Updated 1928h ago

Sector Performance

9th percentile

WRK

17.3%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

# Gross Margin Analysis

WRK's gross margin of 17.3% means the company retains roughly 17 cents of revenue for every dollar of sales after paying direct production costs. This trails the sector median of 41.3% by 24 percentage points, placing WRK in the 14th percentile among sector peers—indicating substantially weaker profitability at the production level than competitors. The metric has remained flat at 17.3% over the last two quarters, suggesting no recent deterioration but also no improvement trajectory. The persistent underperformance relative to peers raises questions about either higher input costs, lower pricing power, or operational inefficiency, all of which constrain the company's ability to generate profits from core operations. Investors should investigate whether this margin gap reflects temporary competitive pressures or structural disadvantages before making allocation decisions.

Frequently Asked Questions

What does the Gross Margin tell investors about WRK?

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 WRK'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.