RTC Group (LSE:RTC) Gross Margin %: 19.00% (As of Dec. 2025) — 15% Above Median


LSE:RTC RTC Group PLC LSE:RTC
61 GF Score
Price £1.01
GF Value £0.83
Valuation Modestly Overvalued
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What is RTC Group Gross Margin %?

RTC Group LSE:RTC 61 Gross Margin % is 19.00% as of Dec. 2025, which is 15% above its 10-year median of 16.55. GuruFocus rates LSE:RTC with a GF Score™ of 61/100 and a GF Value™ of £0.83 (Modestly Overvalued). Among 1,007 Business Services companies, RTC Group ranks worse than 79.34% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. RTC Group's Gross Profit for the six months ended in Dec. 2025 was £8.98 Mil. RTC Group's Revenue for the six months ended in Dec. 2025 was £47.27 Mil. Therefore, RTC Group's Gross Margin % for the quarter that ended in Dec. 2025 was 19.00%.


The historical rank and industry rank for RTC Group's Gross Margin % or its related term are showing as below:

LSE:RTC' s Gross Margin % Range Over the Past 10 Years
Min: 12.59   Med: 16.55   Max: 18.71
Current: 18.71


During the past 13 years, the highest Gross Margin % of RTC Group was 18.71%. The lowest was 12.59%. And the median was 16.55%.

LSE:RTC's Gross Margin % is ranked worse than
79.34% of 1007 companies
in the Business Services industry
Industry Median: 34.5 vs LSE:RTC: 18.71

RTC Group had a gross margin of 19.00% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for RTC Group was 7.90% per year.


RTC Group  (LSE:RTC) 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

RTC Group had a gross margin of 19.00% for the quarter that ended in Dec. 2025 => 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.


RTC Group Gross Margin % Related Terms


RTC Group Gross Margin % Historical Data

* Premium members only.

The historical data trend for RTC Group'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.

RTC Group Gross Margin % Chart

RTC Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.17 16.38 17.66 18.53 18.71

RTC Group Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.58 18.05 19.03 18.43 19.00

LSE:RTC vs KFY, RHI, TNET: Gross Margin % Comparison

For the Staffing & Employment Services subindustry, RTC Group'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.


RTC Group Gross Margin % vs Business Services Industry

For the Business Services industry and Industrials sector, RTC Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where RTC Group's Gross Margin % falls into.


LSE:RTC
61GF Score
RTC Group PLC LSE:RTC
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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RTC Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

RTC Group's Gross Margin for the fiscal year that ended in Dec. 2025 is calculated as

Gross Margin % (A: Dec. 2025 )=Gross Profit (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=17.9 / 95.538
=(Revenue - Cost of Goods Sold) / Revenue
=(95.538 - 77.66) / 95.538
=18.71 %

RTC Group's Gross Margin for the quarter that ended in Dec. 2025 is calculated as


Gross Margin % (Q: Dec. 2025 )=Gross Profit (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=9 / 47.267
=(Revenue - Cost of Goods Sold) / Revenue
=(47.267 - 38.287) / 47.267
=19.00 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 19.00% mean?
RTC Group (LSE:RTC) has a Gross Margin % of 19.00% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on RTC Group and its competitors. This is 15% above median its historical median of 16.55. Over the past decade, RTC Group's Gross Margin % has ranged from 12.59 to 18.71. According to the industry distribution chart, RTC Group ranks #799 out of 1007 companies in the Business Services industry, placing it in the top 79.3%.
Is RTC Group's Gross Margin % too high?
RTC Group's current Gross Margin % of 19.00% is 15% above median its 10-year median of 16.55. Over the past 10 years, this metric has ranged from a low of 12.59 to a high of 18.71. The Business Services industry median Gross Margin % is 34.50. RTC Group's value of 19.00% is 44.9% below this industry median. Based on the distribution chart, RTC Group ranks #799 out of 1007 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, RTC Group has a GF Score™ of 61/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does RTC Group's Gross Margin % compare to KFY and RHI?
According to the Business Services industry distribution chart, RTC Group ranks #799 out of 1007 companies for Gross Margin %. This places RTC Group in the lower half of its industry. The industry median Gross Margin % is 34.50. RTC Group's value of 19.00% is 44.9% below this benchmark. Historically, RTC Group's own Gross Margin % has ranged from 12.59 to 18.71 over the past decade. While the company's 10-year median is 16.55 vs. the industry median of 34.50, RTC Group 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. RTC Group's current Gross Margin % of 19.00% is 44.9% 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 RTC Group 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. RTC Group's current Gross Margin % is 19.00%, which is 15% above median its own 10-year median of 16.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RTC Group stock overvalued right now?
Based on GuruFocus' analysis, RTC Group (LSE:RTC) is currently considered Modestly Overvalued. The stock's GF Value™ is £0.83, compared to a current price of £1.01 — trading 21.7% above its estimated fair value. The current Gross Margin % is 19.00%, which is 15% above median its 10-year median of 16.55 and 44.9% below the Business Services industry median of 34.50. RTC Group's overall GF Score™ is 61/100. 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 RTC Group (LSE:RTC), the current Gross Margin % is 19.00% as of Dec. 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 RTC Group (LSE:RTC) Overvalued in 2026?

Based on GuruFocus' analysis, RTC Group stock appears to be overvalued. The current stock price of £1.01 is trading 21.7% above its estimated GF Value™ of £0.83. GuruFocus considers RTC Group to be Modestly Overvalued.

Key valuation signals for LSE:RTC:

  • Gross Margin %: 19.00% (15% above median its 10-year median of 16.55)
  • GF Value™: £0.83 vs. price of £1.01 (21.7% above fair value)
  • GF Score™: 61/100
  • Industry Position: 44.9% below the Business Services median (#799 of 1007)

No single metric tells the full story. See the LSE:RTC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


RTC Group Business Description

Address London Road, The Derby Conference Centre, Derby, GBR, DE24 8UX
RTC Group PLC is a holding company. Along with its subsidiaries, it is engaged in the provision of engineering and technical recruitment services that provide temporary and permanent labor to a broad range of industries and customers in both domestic and international markets. It focuses on white and blue-collar recruitment, providing temporary, permanent, and contingent staff to a range of industries and clients in both domestic and international markets. The Group's operating segments include UK Recruitment, UK Central Services, and International Recruitment. The majority of its revenues are generated from the UK Recruitment segment. Geographically, the group derives maximum revenue from the United Kingdom, and the rest from the United States and the Middle East.
61GF Score

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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£1.01
Price
£0.83
GF Value