Resources ConnectionFRA:RCO +6.82%60 Gross Margin % is 35.74% as of Feb. 2026, which is 8% below its 10-year median of 38.77. GuruFocus rates FRA:RCO with a GF Score™ of 60/100 and a GF Value™ of €5.73. The stock has 6 warning signs investors should review. Among 1,007 Business Services companies, Resources Connection ranks better than 56.41% 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
Resources Connection had a gross margin of 35.74% for the quarter that ended in Feb. 2026 => Competition eroding margins
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.
Resources Connection Gross Margin % Related Terms
Resources Connection Gross Margin % Historical Data
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The historical data trend for Resources Connection'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.
FRA:RCO vs FORR, GLAI, EUBG: Gross Margin % Comparison
For the Consulting Services subindustry, Resources Connection'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.
Resources Connection Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Resources Connection's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Resources Connection'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.
Resources Connection (FRA:RCO) has a Gross Margin % of 35.74% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Resources Connection and its competitors. This is near median its historical median of 38.77. Over the past decade, Resources Connection's Gross Margin % has ranged from 37.62 to 40.37. According to the industry distribution chart, Resources Connection ranks #439 out of 1007 companies in the Business Services industry, placing it in the top 43.6%.
Is Resources Connection's Gross Margin % too high?
Resources Connection's current Gross Margin % of 35.74% is near median its 10-year median of 38.77. Over the past 10 years, this metric has ranged from a low of 37.62 to a high of 40.37. The Business Services industry median Gross Margin % is 34.50. Resources Connection's value of 35.74% is 3.6% above this industry median. Based on the distribution chart, Resources Connection ranks #439 out of 1007 companies in the Business Services industry, which is above the industry midpoint. Overall, Resources Connection has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does Resources Connection's Gross Margin % compare to FORR and GLAI?
According to the Business Services industry distribution chart, Resources Connection ranks #439 out of 1007 companies for Gross Margin %. This puts Resources Connection in the upper half of its industry. The industry median Gross Margin % is 34.50. Resources Connection's value of 35.74% is 3.6% above this benchmark. Historically, Resources Connection's own Gross Margin % has ranged from 37.62 to 40.37 over the past decade. While the company's 10-year median is 38.77 vs. the industry median of 34.50, Resources Connection has consistently been above 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. Resources Connection's current Gross Margin % of 35.74% is 3.6% above 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 Resources Connection 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. Resources Connection's current Gross Margin % is 35.74%, which is near median its own 10-year median of 38.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Resources Connection stock overvalued right now?
Resources Connection (FRA:RCO) has a current Gross Margin % of 35.74%. The stock's GF Value™ is €5.73, compared to a current price of €3.76 — trading 34.4% below its estimated fair value. The current Gross Margin % is 35.74%, which is near median its 10-year median of 38.77 and 3.6% above the Business Services industry median of 34.50. Resources Connection's overall GF Score™ is 60/100 with 6 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 Resources Connection (FRA:RCO), the current Gross Margin % is 35.74% as of Feb. 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 Resources Connection (FRA:RCO) Overvalued in 2026?
Based on GuruFocus' analysis, Resources Connection stock appears to be undervalued.
The current stock price of €3.76 is trading 34.4% below its estimated GF Value™ of €5.73.
Key valuation signals for FRA:RCO:
Gross Margin %: 35.74% (near median its 10-year median of 38.77)
GF Value™: €5.73 vs. price of €3.76 (34.4% below fair value)
Industry Position: 3.6% above the Business Services median (#439 of 1007)
No single metric tells the full story. See the FRA:RCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Resources Connection Inc provides consulting and business initiative support services predominantly through its operative subsidiary, Resources Global Professionals. It has two segments RGP ( Resources Global Professionals.) and Sitrick. The RGP segment is focused on delivering consulting services catering to its client's operational needs and change initiatives utilizing a combination of bench and on-demand, talent. The Sitrick segment provides corporate, financial, transactional, and crisis communication and management services. The company generates a majority of its revenue from the RGP segment. Geographically, it derives its key revenue from North America and the rest from Europe and the Asia Pacific region.
60GF Score
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