XPONEUTRAL

Gross Margin

11.4%

Higher than 17% of Industrials sector peers

Updated 142h ago

Sector Performance

17th percentile

XPO

11.4%

Sector Median

28.9%

Sector Avg

660.5%

📊

Deep Analysis

Gross margin, the percentage of revenue a company keeps after paying direct production costs, sits at 11.4% for XPO.

That is well below the Industrials sector median of 28.9%, placing XPO in the 17th percentile among its peers. The year-over-year change is not available (N/A), and the quarter-over-quarter change is also N/A, so there is no recent trend to assess. A low margin with no trend data suggests the company generates less gross profit per dollar of sales than most competitors, but without movement in either direction the risk remains tied to the level itself. This below-median margin alone implies a structural cost or pricing challenge that could pressure future profitability. The metric contradicts a NEUTRAL verdict because such a low relative margin typically signals below-average operational efficiency, leaning toward a more cautious view.

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 28.9%, placing it in the 17th percentile.

Who are XPO's closest peers by Gross Margin?

The closest Industrials peers by Gross Margin include: AVY (28.9%), POOL (29.0%), BLDR (28.3%), BE (30.0%), RSG (30.5%).

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.