XOMNEUTRAL

Gross Margin

16.7%

Higher than 13% of Energy sector peers

Updated 73h ago

Sector Performance

13th percentile

XOM

16.7%

Sector Median

32.9%

Sector Avg

39.7%

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Deep Analysis

Gross margin measures the percentage of revenue left after subtracting the cost of goods sold, showing how efficiently a company produces its core products.

Exxon Mobil’s current 16.7% is well below the sector median of 32.4%, placing it in the 12th percentile among energy peers — meaning 88% of competitors have a higher margin. The trend over the last eight quarters is decreasing, with a quarter‑over‑quarter drop of 55.7% (from 37.7% to 16.7%); a year‑over‑year change is not provided. A low gross margin combined with a steep recent decline signals that cost pressures or pricing weakness are squeezing profitability, raising the risk profile for investors. This metric contradicts an outright bullish stance but is consistent with the overall NEUTRAL verdict, as the weak margin and negative trend would need to be offset by other strengths (e.g., strong cash flow or valuation) for a balanced view.

Frequently Asked Questions

What does the Gross Margin tell investors about XOM?

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.

How does XOM's Gross Margin compare to its sector?

XOM's Gross Margin of 16.7% compares to a Energy sector median of 32.9%, placing it in the 13th percentile.

Who are XOM's closest peers by Gross Margin?

The closest Energy peers by Gross Margin include: LNG (31.7%), PXD (34.2%), ARRY (28.2%), AR (39.8%), ENB (25.9%).

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.