DLH HoldingsDLHC 74 Gross Margin % is 19.87% as of Mar. 2026, which is 5% below its 10-year median of 20.92. GuruFocus rates DLHC with a GF Score™ of 74/100 and a GF Value™ of $5.48 (Fairly Valued). The stock has 7 warning signs investors should review. Among 1,007 Business Services companies, DLH Holdings ranks worse than 80.04% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
DLH Holdings had a gross margin of 19.87% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
DLH Holdings Gross Margin % Related Terms
DLH Holdings Gross Margin % Historical Data
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The historical data trend for DLH Holdings's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
DLHC vs TISI, ANPA, WFCF: Gross Margin % Comparison
For the Specialty Business Services subindustry, DLH Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
DLH Holdings Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, DLH Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where DLH Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
DLH Holdings (DLHC) has a Gross Margin % of 19.87% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on DLH Holdings and its competitors. This is near median its historical median of 20.92. Over the past decade, DLH Holdings' Gross Margin % has ranged from 18.29 to 22.35. According to the industry distribution chart, DLH Holdings ranks #806 out of 1007 companies in the Business Services industry, placing it in the top 80%.
Is DLH Holdings' Gross Margin % too high?
DLH Holdings' current Gross Margin % of 19.87% is near median its 10-year median of 20.92. Over the past 10 years, this metric has ranged from a low of 18.29 to a high of 22.35. The Business Services industry median Gross Margin % is 34.50. DLH Holdings' value of 19.87% is 42.4% below this industry median. Based on the distribution chart, DLH Holdings ranks #806 out of 1007 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, DLH Holdings has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does DLH Holdings' Gross Margin % compare to TISI and ANPA?
According to the Business Services industry distribution chart, DLH Holdings ranks #806 out of 1007 companies for Gross Margin %. This places DLH Holdings in the lower half of its industry. The industry median Gross Margin % is 34.50. DLH Holdings' value of 19.87% is 42.4% below this benchmark. Historically, DLH Holdings' own Gross Margin % has ranged from 18.29 to 22.35 over the past decade. While the company's 10-year median is 20.92 vs. the industry median of 34.50, DLH Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Business Services company?
The median Gross Margin % among Business Services companies is 34.50, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DLH Holdings's current Gross Margin % of 19.87% is 42.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on DLH Holdings and its competitors. For the Business Services industry, the median Gross Margin % is 34.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DLH Holdings's current Gross Margin % is 19.87%, which is near median its own 10-year median of 20.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DLH Holdings stock overvalued right now?
Based on GuruFocus' analysis, DLH Holdings (DLHC) is currently considered Fairly Valued. The stock's GF Value™ is $5.48, compared to a current price of $5.30 — trading 3.3% below its estimated fair value. The current Gross Margin % is 19.87%, which is near median its 10-year median of 20.92 and 42.4% below the Business Services industry median of 34.50. DLH Holdings' overall GF Score™ is 74/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For DLH Holdings (DLHC), the current Gross Margin % is 19.87% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is DLH Holdings (DLHC) Overvalued in 2026?
Based on GuruFocus' analysis, DLH Holdings stock appears to be undervalued.
The current stock price of $5.30 is trading 3.3% below its estimated GF Value™ of $5.48.
GuruFocus considers DLH Holdings to be Fairly Valued.
Key valuation signals for DLHC:
Gross Margin %: 19.87% (near median its 10-year median of 20.92)
GF Value™: $5.48 vs. price of $5.30 (3.3% below fair value)
Industry Position: 42.4% below the Business Services median (#806 of 1007)
No single metric tells the full story. See the DLHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DLH Holdings Corp delivers health and readiness solutions for federal government customers through digital transformation and cyber security, science research and development, and systems engineering and integration. It provides technology-enabled business process, program management, and digital transformation solutions to U.S. government agencies, focusing on large-scale, technology-powered health and defense initiatives for agencies including HHS, VA, DoD, and their sub-agencies. Its revenues come from technology-enabled business process outsourcing, program management solutions, and public health research and analytics under time-and-materials, cost-reimbursable, and firm-fixed-price contracts.
74GF Score
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