Heidrick & Struggles International (NAS:HSII) Gross Margin % Explanation
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
Heidrick & Struggles International had a gross margin of 22.09% for the quarter that ended in Sep. 2025 => 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.
Heidrick & Struggles International Gross Margin % Related Terms
Heidrick & Struggles International Gross Margin % Historical Data
* 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.
Heidrick & Struggles International Gross Margin % Chart
For the Staffing & Employment Services subindustry, Heidrick & Struggles International'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.
Heidrick & Struggles International Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Heidrick & Struggles International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Heidrick & Struggles International'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.
Heidrick & Struggles International (HSII) has a Gross Margin % of 22.09% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Heidrick & Struggles International and its competitors. This is 24% below median its historical median of 28.99. Over the past decade, Heidrick & Struggles International's Gross Margin % has ranged from 23.63 to 33.42.
Is Heidrick & Struggles International's Gross Margin % too high?
Heidrick & Struggles International's current Gross Margin % of 22.09% is 24% below median its 10-year median of 28.99. Over the past 10 years, this metric has ranged from a low of 23.63 to a high of 33.42. The Business Services industry median Gross Margin % is 34.46. Heidrick & Struggles International's value of 22.09% is 35.9% below this industry median. Overall, Heidrick & Struggles International has a GF Scoreâ„¢ of 65/100, reflecting its overall financial health beyond just this single metric.
How does Heidrick & Struggles International's Gross Margin % compare to MAN and NSP?
Heidrick & Struggles International's Gross Margin % of 22.09% can be compared against companies in the Business Services industry. The industry median Gross Margin % is 34.46. Heidrick & Struggles International's value of 22.09% is 35.9% below this benchmark. Historically, Heidrick & Struggles International's own Gross Margin % has ranged from 23.63 to 33.42 over the past decade. While the company's 10-year median is 28.99 vs. the industry median of 34.46, Heidrick & Struggles International 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 34.46, 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. Heidrick & Struggles International's current Gross Margin % of 22.09% is 35.9% 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 Heidrick & Struggles International and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Heidrick & Struggles International's current Gross Margin % is 22.09%, which is 24% below median its own 10-year median of 28.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Heidrick & Struggles International stock overvalued right now?
Heidrick & Struggles International (HSII) has a current Gross Margin % of 22.09%. The stock's GF Value™ is $37.59, compared to a current price of $59.01 — trading 57% above its estimated fair value. The current Gross Margin % is 22.09%, which is 24% below median its 10-year median of 28.99 and 35.9% below the Business Services industry median of 34.46. Heidrick & Struggles International's overall GF Score™ is 65/100 with 8 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 Heidrick & Struggles International (HSII), the current Gross Margin % is 22.09% as of Sep. 2025. 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 Heidrick & Struggles International (HSII) Overvalued in 2026?
Based on GuruFocus' analysis, Heidrick & Struggles International stock appears to be overvalued.
The current stock price of $59.01 is trading 57% above its estimated GF Value™ of $37.59.
Key valuation signals for HSII:
Gross Margin %: 22.09% (24% below median its 10-year median of 28.99)
GF Value™: $37.59 vs. price of $59.01 (57% above fair value)
Industry Position: 35.9% below the Business Services median
No single metric tells the full story. See the HSII stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Heidrick & Struggles International Business Description
Heidrick & Struggles International Inc is a leadership advisory firm providing executive search and consulting services to businesses and business leaders world wide. The company's operating segments include the executive search business which operates in the Americas; Europe; Asia Pacific and On-Demand Talent and Heidrick Consulting. It generates maximum revenue from the Americas.
65GF Score
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