HerculesLSE:HERC +4.76%56 Gross Margin % is 15.03% as of Mar. 2026, which is 11% below its 10-year median of 16.92. GuruFocus rates LSE:HERC with a GF Score™ of 56/100 and a GF Value™ of £0.43 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,007 Business Services companies, Hercules ranks worse than 85.2% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Hercules's Gross Profit for the
six
months ended in Mar. 2026 was £8.9 Mil. Hercules's Revenue for the
six
months ended in Mar. 2026 was £59.2 Mil. Therefore, Hercules's Gross Margin % for the quarter that ended in Mar. 2026 was 15.03%.
Warning Sign:
Hercules PLC gross margin has been in long-term decline. The average rate of decline per year is -6.1%.
The historical rank and industry rank for Hercules's Gross Margin % or its related term are showing as below:
LSE:HERC'
s Gross Margin % Range Over the Past 10 Years
Min: 14.69 Med: 16.92 Max: 20.42
Current: 15.1
During the past 9 years, the highestGross Margin % of Hercules was 20.42%. The lowest was 14.69%. And the median was 16.92%.
LSE:HERC's Gross Margin % is ranked worse than 85.2% of 1007
companies
in the Business Services industry
Industry Median: 34.5
vs LSE:HERC: 15.10
Hercules had a gross margin of 15.03% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hercules was -6.10% per year.
Hercules (LSE:HERC) 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
Hercules had a gross margin of 15.03% 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.
Hercules Gross Margin % Related Terms
Hercules Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hercules'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.
LSE:HERC vs KFY, RHI, TNET: Gross Margin % Comparison
For the Staffing & Employment Services subindustry, Hercules'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.
Hercules Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Hercules's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hercules'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.
Hercules (LSE:HERC) has a Gross Margin % of 15.03% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hercules and its competitors. This is 11% below median its historical median of 16.92. Over the past decade, Hercules' Gross Margin % has ranged from 14.69 to 20.42. According to the industry distribution chart, Hercules ranks #858 out of 1007 companies in the Business Services industry, placing it in the top 85.2%.
Is Hercules' Gross Margin % too high?
Hercules' current Gross Margin % of 15.03% is 11% below median its 10-year median of 16.92. Over the past 10 years, this metric has ranged from a low of 14.69 to a high of 20.42. The Business Services industry median Gross Margin % is 34.50. Hercules' value of 15.03% is 56.4% below this industry median. Based on the distribution chart, Hercules ranks #858 out of 1007 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Hercules has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hercules' Gross Margin % compare to KFY and RHI?
According to the Business Services industry distribution chart, Hercules ranks #858 out of 1007 companies for Gross Margin %. This places Hercules in the lower half of its industry. The industry median Gross Margin % is 34.50. Hercules' value of 15.03% is 56.4% below this benchmark. Historically, Hercules' own Gross Margin % has ranged from 14.69 to 20.42 over the past decade. While the company's 10-year median is 16.92 vs. the industry median of 34.50, Hercules 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. Hercules's current Gross Margin % of 15.03% is 56.4% 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 Hercules 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. Hercules's current Gross Margin % is 15.03%, which is 11% below median its own 10-year median of 16.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hercules stock overvalued right now?
Based on GuruFocus' analysis, Hercules (LSE:HERC) is currently considered Possible Value Trap. The stock's GF Value™ is £0.43, compared to a current price of £0.28 — trading 36% below its estimated fair value. The current Gross Margin % is 15.03%, which is 11% below median its 10-year median of 16.92 and 56.4% below the Business Services industry median of 34.50. Hercules' overall GF Score™ is 56/100 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 Hercules (LSE:HERC), the current Gross Margin % is 15.03% 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 Hercules (LSE:HERC) Overvalued in 2026?
Based on GuruFocus' analysis, Hercules stock appears to be undervalued.
The current stock price of £0.28 is trading 36% below its estimated GF Value™ of £0.43.
GuruFocus considers Hercules to be Possible Value Trap.
Key valuation signals for LSE:HERC:
Gross Margin %: 15.03% (11% below median its 10-year median of 16.92)
GF Value™: £0.43 vs. price of £0.28 (36% below fair value)
Industry Position: 56.4% below the Business Services median (#858 of 1007)
No single metric tells the full story. See the LSE:HERC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hercules PLC is a technology-enabled labour supply company for the UK infrastructure and construction sectors. The company provides general labour for highway projects, specialised operators for the water sector, and health and well-being support. The segments of the company are Labour supply engaged in the provision of labour to customers Civil projects represents work performed under contracts with customers to undertake construction and/or civil engineering work, and Other activities. The company derives maximum revenue from Labour supply segment. Labour supply is engaged in providing flexible and reliable workforce solutions tailored to meet the demands of each project.
56GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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