Fortrea HoldingsFTRE -1.13%66 Gross Margin % is 19.42% as of Mar. 2026, which is 2% below its 10-year median of 19.79. GuruFocus rates FTRE with a GF Score™ of 66/100 and a GF Value™ of $18.26 (Fairly Valued). The stock has 7 warning signs investors should review. Among 735 Biotechnology companies, Fortrea Holdings ranks worse than 85.03% 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
Fortrea Holdings had a gross margin of 19.42% 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.
Fortrea Holdings Gross Margin % Related Terms
Fortrea Holdings Gross Margin % Historical Data
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The historical data trend for Fortrea 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.
FTRE vs SEPN, MLTX, URGN: Gross Margin % Comparison
For the Biotechnology subindustry, Fortrea 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.
Fortrea Holdings Gross Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Fortrea Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fortrea 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.
Fortrea Holdings (FTRE) has a Gross Margin % of 19.42% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Fortrea Holdings and its competitors. This is near median its historical median of 19.79. Over the past decade, Fortrea Holdings' Gross Margin % has ranged from 18.50 to 25.53. According to the industry distribution chart, Fortrea Holdings ranks #625 out of 735 companies in the Biotechnology industry, placing it in the top 85%.
Is Fortrea Holdings' Gross Margin % too high?
Fortrea Holdings' current Gross Margin % of 19.42% is near median its 10-year median of 19.79. Over the past 10 years, this metric has ranged from a low of 18.50 to a high of 25.53. The Biotechnology industry median Gross Margin % is 60.90. Fortrea Holdings' value of 19.42% is 68.1% below this industry median. Based on the distribution chart, Fortrea Holdings ranks #625 out of 735 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Fortrea Holdings has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Fortrea Holdings' Gross Margin % compare to SEPN and MLTX?
According to the Biotechnology industry distribution chart, Fortrea Holdings ranks #625 out of 735 companies for Gross Margin %. This places Fortrea Holdings in the lower half of its industry. The industry median Gross Margin % is 60.90. Fortrea Holdings' value of 19.42% is 68.1% below this benchmark. Historically, Fortrea Holdings' own Gross Margin % has ranged from 18.50 to 25.53 over the past decade. While the company's 10-year median is 19.79 vs. the industry median of 60.90, Fortrea 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 Biotechnology company?
The median Gross Margin % among Biotechnology companies is 60.90, based on 735 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. Fortrea Holdings's current Gross Margin % of 19.42% is 68.1% 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 Fortrea Holdings and its competitors. For the Biotechnology industry, the median Gross Margin % is 60.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fortrea Holdings's current Gross Margin % is 19.42%, which is near median its own 10-year median of 19.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fortrea Holdings stock overvalued right now?
Based on GuruFocus' analysis, Fortrea Holdings (FTRE) is currently considered Fairly Valued. The stock's GF Value™ is $18.26, compared to a current price of $17.45 — trading 4.4% below its estimated fair value. The current Gross Margin % is 19.42%, which is near median its 10-year median of 19.79 and 68.1% below the Biotechnology industry median of 60.90. Fortrea Holdings' overall GF Score™ is 66/100 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 Fortrea Holdings (FTRE), the current Gross Margin % is 19.42% 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 Fortrea Holdings (FTRE) Overvalued in 2026?
Based on GuruFocus' analysis, Fortrea Holdings stock appears to be undervalued.
The current stock price of $17.45 is trading 4.4% below its estimated GF Value™ of $18.26.
GuruFocus considers Fortrea Holdings to be Fairly Valued.
Key valuation signals for FTRE:
Gross Margin %: 19.42% (near median its 10-year median of 19.79)
GF Value™: $18.26 vs. price of $17.45 (4.4% below fair value)
Industry Position: 68.1% below the Biotechnology median (#625 of 735)
No single metric tells the full story. See the FTRE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fortrea is a global, late-stage contract research organization that provides comprehensive phase 1 through phase 4 clinical trial management, clinical pharmacology, and patient access solutions. The company works with emerging and large biopharma, medical device, and diagnostic companies to run their clinical trials as a functional-service provider, full-service provider, and offers hybrid trials. In 2023, Fortrea was formed as an independent, publicly traded company after Labcorp spun off its clinical development business, which it acquired via its purchase of Covance in 2015 for $6.1 billion.
66GF Score
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