XYLNEUTRAL

Gross Margin

37.8%

Updated 200h ago

Sector Performance

39th percentile

XYL

37.8%

Sector Median

44.7%

Sector Avg

45.2%

📊

Deep Analysis

Gross margin is the percentage of revenue a company retains after paying the direct costs of producing its goods or services; XYL's current gross margin of 37.8% means that for every dollar of revenue, about 38 cents remain to cover operating expenses and profit.

This figure sits below the sector median of 44.4%, placing the company in the 39th percentile among its peers — meaning over 60% of competitors have higher gross margins. No trend data is available: the year-over-year change, quarter-over-quarter change, and historical values for the last eight quarters are all reported as N/A, so no direction can be assessed. The combination of a below-median gross margin with no trend information indicates that the company's cost structure or pricing power may be weaker than peers, but without movement data it is unclear whether this is improving or deteriorating. This metric supports the overall NEUTRAL verdict, as the current margin level is below average yet lacks the directional information needed to justify a bullish or bearish stance.

Frequently Asked Questions

What does the Gross Margin tell investors about XYL?

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 XYL'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.