SPAR GroupSGRP +0.54%29 Gross Margin % is 22.32% as of Mar. 2026, which is 14% above its 10-year median of 19.56. GuruFocus rates SGRP with a GF Score™ of 29/100 and a GF Value™ of $0.86 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,007 Business Services companies, SPAR Group ranks worse than 83.81% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. SPAR Group's Gross Profit for the
three
months ended in Mar. 2026 was $6.8 Mil. SPAR Group's Revenue for the
three
months ended in Mar. 2026 was $30.5 Mil. Therefore, SPAR Group's Gross Margin % for the quarter that ended in Mar. 2026 was 22.32%.
Warning Sign:
SPAR Group Inc gross margin has been in long-term decline. The average rate of decline per year is -1.7%.
The historical rank and industry rank for SPAR Group's Gross Margin % or its related term are showing as below:
SGRP'
s Gross Margin % Range Over the Past 10 Years
Min: 15.94 Med: 19.56 Max: 22.22
Current: 16.01
During the past 13 years, the highestGross Margin % of SPAR Group was 22.22%. The lowest was 15.94%. And the median was 19.56%.
SGRP's Gross Margin % is ranked worse than 83.81% of 1007
companies
in the Business Services industry
Industry Median: 34.5
vs SGRP: 16.01
SPAR Group had a gross margin of 22.32% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for SPAR Group was -1.70% per year.
SPAR Group (NAS:SGRP) 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
SPAR Group had a gross margin of 22.32% for the quarter that ended in Mar. 2026 => 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.
SPAR Group Gross Margin % Related Terms
SPAR Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for SPAR 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.
SGRP vs THH, CAHO, WHLM: Gross Margin % Comparison
For the Specialty Business Services subindustry, SPAR 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.
SPAR Group Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, SPAR Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SPAR Group'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.
SPAR Group (SGRP) has a Gross Margin % of 22.32% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SPAR Group and its competitors. This is 14% above median its historical median of 19.56. Over the past decade, SPAR Group's Gross Margin % has ranged from 15.94 to 22.22. According to the industry distribution chart, SPAR Group ranks #844 out of 1007 companies in the Business Services industry, placing it in the top 83.8%.
Is SPAR Group's Gross Margin % too high?
SPAR Group's current Gross Margin % of 22.32% is 14% above median its 10-year median of 19.56. Over the past 10 years, this metric has ranged from a low of 15.94 to a high of 22.22. The Business Services industry median Gross Margin % is 34.50. SPAR Group's value of 22.32% is 35.3% below this industry median. Based on the distribution chart, SPAR Group ranks #844 out of 1007 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, SPAR Group has a GF Score™ of 29/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does SPAR Group's Gross Margin % compare to THH and CAHO?
According to the Business Services industry distribution chart, SPAR Group ranks #844 out of 1007 companies for Gross Margin %. This places SPAR Group in the lower half of its industry. The industry median Gross Margin % is 34.50. SPAR Group's value of 22.32% is 35.3% below this benchmark. Historically, SPAR Group's own Gross Margin % has ranged from 15.94 to 22.22 over the past decade. While the company's 10-year median is 19.56 vs. the industry median of 34.50, SPAR 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. SPAR Group's current Gross Margin % of 22.32% is 35.3% 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 SPAR 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. SPAR Group's current Gross Margin % is 22.32%, which is 14% above median its own 10-year median of 19.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SPAR Group stock overvalued right now?
Based on GuruFocus' analysis, SPAR Group (SGRP) is currently considered Fairly Valued. The stock's GF Value™ is $0.86, compared to a current price of $0.81 — trading 5.8% below its estimated fair value. The current Gross Margin % is 22.32%, which is 14% above median its 10-year median of 19.56 and 35.3% below the Business Services industry median of 34.50. SPAR Group's overall GF Score™ is 29/100 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 SPAR Group (SGRP), the current Gross Margin % is 22.32% 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 SPAR Group (SGRP) Overvalued in 2026?
Based on GuruFocus' analysis, SPAR Group stock appears to be undervalued.
The current stock price of $0.81 is trading 5.8% below its estimated GF Value™ of $0.86.
GuruFocus considers SPAR Group to be Fairly Valued.
Key valuation signals for SGRP:
Gross Margin %: 22.32% (14% above median its 10-year median of 19.56)
GF Value™: $0.86 vs. price of $0.81 (5.8% below fair value)
Industry Position: 35.3% below the Business Services median (#844 of 1007)
No single metric tells the full story. See the SGRP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SPAR Group Inc is a merchandising and brand marketing services company, providing a broad range of sales-enhancing services to retailers across classes of trade and consumer goods manufacturers and distributors. The company provides five principal types of services: Merchandising, Marketing and Category Management, Remodel and Retail Transformation, Assembly and Installation, Fulfilment and Distribution, and Business Analytics and Insights. It operates in two segments, namely the U.S. and Canada, with the majority of the revenues deriving from the U.S. segment.
29GF Score
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