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Target HospitalityTH +3.53%66 Gross Margin % is 9.46% as of Mar. 2026, which is 76% below its 10-year median of 39.52. GuruFocus rates TH with a GF Score™ of 66/100 and a GF Value™ of $7.52 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,008 Business Services companies, Target Hospitality ranks worse than 92.06% 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
Target Hospitality had a gross margin of 9.46% 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.
Target Hospitality Gross Margin % Related Terms
Target Hospitality Gross Margin % Historical Data
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The historical data trend for Target Hospitality'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.
For the Specialty Business Services subindustry, Target Hospitality'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.
Target Hospitality Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Target Hospitality's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Target Hospitality'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.
Target Hospitality (TH) has a Gross Margin % of 9.46% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Target Hospitality and its competitors. This is 76% below median its historical median of 39.52. Over the past decade, Target Hospitality's Gross Margin % has ranged from 9.76 to 55.59. According to the industry distribution chart, Target Hospitality ranks #928 out of 1008 companies in the Business Services industry, placing it in the top 92.1%.
Is Target Hospitality's Gross Margin % too high?
Target Hospitality's current Gross Margin % of 9.46% is 76% below median its 10-year median of 39.52. Over the past 10 years, this metric has ranged from a low of 9.76 to a high of 55.59. The Business Services industry median Gross Margin % is 34.52. Target Hospitality's value of 9.46% is 72.6% below this industry median. Based on the distribution chart, Target Hospitality ranks #928 out of 1008 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Target Hospitality has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Target Hospitality's Gross Margin % compare to TIC and CMPR?
According to the Business Services industry distribution chart, Target Hospitality ranks #928 out of 1008 companies for Gross Margin %. This places Target Hospitality in the lower half of its industry. The industry median Gross Margin % is 34.52. Target Hospitality's value of 9.46% is 72.6% below this benchmark. Historically, Target Hospitality's own Gross Margin % has ranged from 9.76 to 55.59 over the past decade. While the company's 10-year median is 39.52 vs. the industry median of 34.52, Target Hospitality 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. Target Hospitality's current Gross Margin % of 9.46% is 72.6% 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 Target Hospitality 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. Target Hospitality's current Gross Margin % is 9.46%, which is 76% below median its own 10-year median of 39.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Target Hospitality stock overvalued right now?
Based on GuruFocus' analysis, Target Hospitality (TH) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.52, compared to a current price of $17.32 — trading 130.3% above its estimated fair value. The current Gross Margin % is 9.46%, which is 76% below median its 10-year median of 39.52 and 72.6% below the Business Services industry median of 34.52. Target Hospitality's overall GF Score™ is 66/100 with 2 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 Target Hospitality (TH), the current Gross Margin % is 9.46% 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 Target Hospitality (TH) Overvalued in 2026?
Based on GuruFocus' analysis, Target Hospitality stock appears to be overvalued.
The current stock price of $17.32 is trading 130.3% above its estimated GF Value™ of $7.52.
GuruFocus considers Target Hospitality to be Significantly Overvalued.
Key valuation signals for TH:
Gross Margin %: 9.46% (76% below median its 10-year median of 39.52)
GF Value™: $7.52 vs. price of $17.32 (130.3% above fair value)
Industry Position: 72.6% below the Business Services median (#928 of 1008)
No single metric tells the full story. See the TH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Target Hospitality Corp is a vertically integrated specialty rental and hospitality services company in the United States. The company provides vertically integrated specialty rental and comprehensive hospitality services, including catering food services, maintenance, housekeeping, grounds-keeping, on-site security, overall workforce lodge management, and laundry service. The company has three reportable segments: HFS - South, which provides specialty rental and hospitality services to the natural resources and development industry; WHS, which provides construction and hospitality solutions for critical mineral and data center projects; and Government, which provides specialty rental and hospitality services under government contracts.
66GF Score
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