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Primech HoldingsPMEC -0.19%25 Gross Margin % is 14.12% as of Sep. 2025, which is 20% below its 10-year median of 17.74. GuruFocus rates PMEC with a GF Score™ of 25/100. The stock has 5 warning signs investors should review. Among 1,008 Business Services companies, Primech Holdings ranks worse than 75% 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
Primech Holdings had a gross margin of 14.12% for the quarter that ended in Sep. 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.
Primech Holdings Gross Margin % Related Terms
Primech Holdings Gross Margin % Historical Data
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The historical data trend for Primech 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.
PMEC vs WBQNL, SFRX, KUBR: Gross Margin % Comparison
For the Specialty Business Services subindustry, Primech 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.
Primech Holdings Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Primech Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Primech 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.
Primech Holdings (PMEC) has a Gross Margin % of 14.12% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Primech Holdings and its competitors. This is 20% below median its historical median of 17.74. Over the past decade, Primech Holdings' Gross Margin % has ranged from 11.67 to 25.83. According to the industry distribution chart, Primech Holdings ranks #756 out of 1008 companies in the Business Services industry, placing it in the top 75%.
Is Primech Holdings' Gross Margin % too high?
Primech Holdings' current Gross Margin % of 14.12% is 20% below median its 10-year median of 17.74. Over the past 10 years, this metric has ranged from a low of 11.67 to a high of 25.83. The Business Services industry median Gross Margin % is 34.52. Primech Holdings' value of 14.12% is 59.1% below this industry median. Based on the distribution chart, Primech Holdings ranks #756 out of 1008 companies in the Business Services industry, which is below the industry midpoint. Overall, Primech Holdings has a GF Score™ of 25/100, reflecting its overall financial health beyond just this single metric.
How does Primech Holdings' Gross Margin % compare to WBQNL and SFRX?
According to the Business Services industry distribution chart, Primech Holdings ranks #756 out of 1008 companies for Gross Margin %. This places Primech Holdings in the lower half of its industry. The industry median Gross Margin % is 34.52. Primech Holdings' value of 14.12% is 59.1% below this benchmark. Historically, Primech Holdings' own Gross Margin % has ranged from 11.67 to 25.83 over the past decade. While the company's 10-year median is 17.74 vs. the industry median of 34.52, Primech 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 34.52, based on 1,008 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. Primech Holdings's current Gross Margin % of 14.12% is 59.1% 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 Primech Holdings and its competitors. For the Business Services industry, the median Gross Margin % is 34.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Primech Holdings's current Gross Margin % is 14.12%, which is 20% below median its own 10-year median of 17.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Primech Holdings stock overvalued right now?
Primech Holdings (PMEC) has a current Gross Margin % of 14.12%. The current Gross Margin % is 14.12%, which is 20% below median its 10-year median of 17.74 and 59.1% below the Business Services industry median of 34.52. Primech Holdings' overall GF Score™ is 25/100 with 5 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 Primech Holdings (PMEC), the current Gross Margin % is 14.12% 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.
Primech Holdings Ltd is a technology-driven facilities services provider in the public and private sectors operating mainly in Singapore. The services offered by the company include Facilities services, Stewarding services, Cleaning services to offices, Cleaning services to homes, and Cleaning Supplies.
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