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Star Equity HoldingsSTRR -3.50%55 Gross Margin % is 41.06% as of Mar. 2026, which is 14% below its 10-year median of 47.91. GuruFocus rates STRR with a GF Score™ of 55/100 and a GF Value™ of $16.44 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,004 Business Services companies, Star Equity Holdings ranks better than 63.75% on this metric.
Star Equity Holdings (NAS:STRR) 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
Star Equity Holdings had a gross margin of 41.06% for the quarter that ended in Mar. 2026 => Durable 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.
Star Equity Holdings Gross Margin % Related Terms
Star Equity Holdings Gross Margin % Historical Data
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The historical data trend for Star Equity 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.
STRR vs ATVK, LGPS, GPUS: Gross Margin % Comparison
For the Staffing & Employment Services subindustry, Star Equity 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.
Star Equity Holdings Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Star Equity Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Star Equity 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.
Star Equity Holdings (STRR) has a Gross Margin % of 41.06% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Star Equity Holdings and its competitors. This is 14% below median its historical median of 47.91. Over the past decade, Star Equity Holdings' Gross Margin % has ranged from 38.52 to 70.55. According to the industry distribution chart, Star Equity Holdings ranks #364 out of 1004 companies in the Business Services industry, placing it in the top 36.3%.
Is Star Equity Holdings' Gross Margin % too high?
Star Equity Holdings' current Gross Margin % of 41.06% is 14% below median its 10-year median of 47.91. Over the past 10 years, this metric has ranged from a low of 38.52 to a high of 70.55. The Business Services industry median Gross Margin % is 34.46. Star Equity Holdings' value of 41.06% is 19.2% above this industry median. Based on the distribution chart, Star Equity Holdings ranks #364 out of 1004 companies in the Business Services industry, which is above the industry midpoint. Overall, Star Equity Holdings has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Star Equity Holdings' Gross Margin % compare to ATVK and LGPS?
According to the Business Services industry distribution chart, Star Equity Holdings ranks #364 out of 1004 companies for Gross Margin %. This puts Star Equity Holdings in the upper half of its industry. The industry median Gross Margin % is 34.46. Star Equity Holdings' value of 41.06% is 19.2% above this benchmark. Historically, Star Equity Holdings' own Gross Margin % has ranged from 38.52 to 70.55 over the past decade. While the company's 10-year median is 47.91 vs. the industry median of 34.46, Star Equity Holdings has consistently been above 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 1,004 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. Star Equity Holdings's current Gross Margin % of 41.06% is 19.2% above 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 Star Equity 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. Star Equity Holdings's current Gross Margin % is 41.06%, which is 14% below median its own 10-year median of 47.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Star Equity Holdings stock overvalued right now?
Based on GuruFocus' analysis, Star Equity Holdings (STRR) is currently considered Possible Value Trap. The stock's GF Value™ is $16.44, compared to a current price of $9.80 — trading 40.4% below its estimated fair value. The current Gross Margin % is 41.06%, which is 14% below median its 10-year median of 47.91 and 19.2% above the Business Services industry median of 34.46. Star Equity Holdings' overall GF Score™ is 55/100 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 Star Equity Holdings (STRR), the current Gross Margin % is 41.06% 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 Star Equity Holdings (STRR) Overvalued in 2026?
Based on GuruFocus' analysis, Star Equity Holdings stock appears to be undervalued.
The current stock price of $9.80 is trading 40.4% below its estimated GF Value™ of $16.44.
GuruFocus considers Star Equity Holdings to be Possible Value Trap.
Key valuation signals for STRR:
Gross Margin %: 41.06% (14% below median its 10-year median of 47.91)
GF Value™: $16.44 vs. price of $9.80 (40.4% below fair value)
Industry Position: 19.2% above the Business Services median (#364 of 1004)
No single metric tells the full story. See the STRR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Star Equity Holdings Inc is a diversified multi-industry holding company operating through four reportable segments: Building Solutions, Business Services, Energy Services, and Investments. The company derives majority of the revenue from Business Services segment that provides customized recruitment and contracting solutions to mid-to-large multinational companies. Service offerings include Recruitment Process Outsourcing, project-based RPO, contingent workforce solutions, recruitment consulting, outsourced professional contract staffing, and managed service provider services.
55GF Score
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