XPONEUTRAL

XPO Gross Margin Analysis

11.4%

Higher than 17% of Industrials sector peers

Updated 1067h ago·SEC filings & market data

Key Takeaway

XPO's gross margin of 11.4% means that after subtracting the direct costs of providing its transportation and logistics services, the company keeps 11.4 cents of every dollar in revenue as gross profit.

Sector Performance

17th percentile

XPO

11.4%

Sector Median

29.6%

Sector Avg

814.4%

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Deep Analysis

This is well below the Industrials sector median of 29.0%, placing XPO in the 13th percentile among sector peers — indicating weaker pricing power or higher input costs relative to competitors. No trend data is available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and only a single historical value of 11.4% is provided. Because both the margin level is low and there is no trend to assess improvement or deterioration, the metric signals a structural disadvantage that carries clear downside risk. This low gross margin contradicts the overall NEUTRAL verdict, suggesting the stock may face headwinds that a neutral rating might understate.

Frequently Asked Questions

What does the Gross Margin tell investors about XPO?

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 XPO's Gross Margin compare to its sector?

XPO's Gross Margin of 11.4% compares to a Industrials sector median of 29.6%, placing it in the 17th percentile.

Who are XPO's closest peers by Gross Margin?

The closest Industrials peers by Gross Margin include: AVY (29.6%), POOL (29.7%), BLDR (28.1%), SAVE (31.3%), AAL (26.0%).

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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.