Hertz Global HoldingsHTZ -36.79%70 Gross Margin % is 7.63% as of Mar. 2026, which is 49% below its 10-year median of 14.89. GuruFocus rates HTZ with a GF Score™ of 70/100 and a GF Value™ of $5.58 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 1,007 Business Services companies, Hertz Global Holdings ranks worse than 88.58% on this metric.
HTZ's Gross Margin % is ranked worse than 88.58% of 1007
companies
in the Business Services industry
Industry Median: 34.46
vs HTZ: 12.55
Hertz Global Holdings had a gross margin of 7.63% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hertz Global Holdings was 0.00% per year.
Hertz Global Holdings (NAS:HTZ) 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
Hertz Global Holdings had a gross margin of 7.63% 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.
Hertz Global Holdings Gross Margin % Related Terms
Hertz Global Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hertz Global 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.
For the Rental & Leasing Services subindustry, Hertz Global 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.
Hertz Global Holdings Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Hertz Global Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hertz Global 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.
Hertz Global Holdings (HTZ) has a Gross Margin % of 7.63% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hertz Global Holdings and its competitors. This is 49% below median its historical median of 14.89. According to the industry distribution chart, Hertz Global Holdings ranks #892 out of 1007 companies in the Business Services industry, placing it in the top 88.6%.
Is Hertz Global Holdings' Gross Margin % too high?
Hertz Global Holdings' current Gross Margin % of 7.63% is 49% below median its 10-year median of 14.89. The Business Services industry median Gross Margin % is 34.46. Hertz Global Holdings' value of 7.63% is 77.9% below this industry median. Based on the distribution chart, Hertz Global Holdings ranks #892 out of 1007 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Hertz Global Holdings has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hertz Global Holdings' Gross Margin % compare to VSTS and PRG?
According to the Business Services industry distribution chart, Hertz Global Holdings ranks #892 out of 1007 companies for Gross Margin %. This places Hertz Global Holdings in the lower half of its industry. The industry median Gross Margin % is 34.46. Hertz Global Holdings' value of 7.63% is 77.9% below this benchmark. While the company's 10-year median is 14.89 vs. the industry median of 34.46, Hertz Global 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 34.46, 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. Hertz Global Holdings's current Gross Margin % of 7.63% is 77.9% 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 Hertz Global Holdings 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. Hertz Global Holdings's current Gross Margin % is 7.63%, which is 49% below median its own 10-year median of 14.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hertz Global Holdings stock overvalued right now?
Based on GuruFocus' analysis, Hertz Global Holdings (HTZ) is currently considered Possible Value Trap. The stock's GF Value™ is $5.58, compared to a current price of $3.20 — trading 42.7% below its estimated fair value. The current Gross Margin % is 7.63%, which is 49% below median its 10-year median of 14.89 and 77.9% below the Business Services industry median of 34.46. Hertz Global Holdings' overall GF Score™ is 70/100 with 9 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 Hertz Global Holdings (HTZ), the current Gross Margin % is 7.63% 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 Hertz Global Holdings (HTZ) Overvalued in 2026?
Based on GuruFocus' analysis, Hertz Global Holdings stock appears to be undervalued.
The current stock price of $3.20 is trading 42.7% below its estimated GF Value™ of $5.58.
GuruFocus considers Hertz Global Holdings to be Possible Value Trap.
Key valuation signals for HTZ:
Gross Margin %: 7.63% (49% below median its 10-year median of 14.89)
GF Value™: $5.58 vs. price of $3.20 (42.7% below fair value)
Industry Position: 77.9% below the Business Services median (#892 of 1007)
No single metric tells the full story. See the HTZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hertz Global Holdings Inc is engaged principally in the business of renting vehicles through its Hertz, Dollar and Thrifty brands. The company has two reportable segments: i) Americas RAC: Rental of vehicles, as well as sales of vehicles and value-added services, in the U.S., Canada, Latin America and the Caribbean, ii) International RAC: Rental of vehicles, as well as sales of vehicles and value-added services, in locations other than the U.S., Canada, Latin America and the Caribbean. The company maintains a substantial network of company-operated rental locations, a majority of which are in Europe, and has franchisees and partners that operate rental locations under brands. Geographical markets include North America, Europe, Pacific Asia, Middle East and Africa, and Latin America.
70GF Score
Get the complete analysis for HTZ
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HTZ has been successfully added to your 
