US Physical TherapyUSPH -0.99%77 Gross Margin % is 16.52% as of Mar. 2026, which is 25% below its 10-year median of 22.11. GuruFocus rates USPH with a GF Score™ of 77/100 and a GF Value™ of $107.62 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 631 Healthcare Providers & Services companies, US Physical Therapy ranks worse than 85.42% on this metric.
US Physical Therapy Inc gross margin has been in long-term decline. The average rate of decline per year is -4.2%.
The historical rank and industry rank for US Physical Therapy's Gross Margin % or its related term are showing as below:
USPH'
s Gross Margin % Range Over the Past 10 Years
Min: 18.46 Med: 22.11 Max: 23.67
Current: 19.03
During the past 13 years, the highestGross Margin % of US Physical Therapy was 23.67%. The lowest was 18.46%. And the median was 22.11%.
USPH's Gross Margin % is ranked worse than 85.42% of 631
companies
in the Healthcare Providers & Services industry
Industry Median: 40.09
vs USPH: 19.03
US Physical Therapy had a gross margin of 16.52% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for US Physical Therapy was -4.20% per year.
US Physical Therapy (NYSE:USPH) 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
US Physical Therapy had a gross margin of 16.52% 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.
US Physical Therapy Gross Margin % Related Terms
US Physical Therapy Gross Margin % Historical Data
* Premium members only.
The historical data trend for US Physical Therapy'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.
USPH vs INNV, NUTX, AMN: Gross Margin % Comparison
For the Medical Care Facilities subindustry, US Physical Therapy'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.
US Physical Therapy Gross Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, US Physical Therapy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where US Physical Therapy'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.
US Physical Therapy (USPH) has a Gross Margin % of 16.52% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on US Physical Therapy and its competitors. This is 25% below median its historical median of 22.11. Over the past decade, US Physical Therapy's Gross Margin % has ranged from 18.46 to 23.67. According to the industry distribution chart, US Physical Therapy ranks #539 out of 631 companies in the Healthcare Providers & Services industry, placing it in the top 85.4%.
Is US Physical Therapy's Gross Margin % too high?
US Physical Therapy's current Gross Margin % of 16.52% is 25% below median its 10-year median of 22.11. Over the past 10 years, this metric has ranged from a low of 18.46 to a high of 23.67. The Healthcare Providers & Services industry median Gross Margin % is 40.09. US Physical Therapy's value of 16.52% is 58.8% below this industry median. Based on the distribution chart, US Physical Therapy ranks #539 out of 631 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, US Physical Therapy has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does US Physical Therapy's Gross Margin % compare to INNV and NUTX?
According to the Healthcare Providers & Services industry distribution chart, US Physical Therapy ranks #539 out of 631 companies for Gross Margin %. This places US Physical Therapy in the lower half of its industry. The industry median Gross Margin % is 40.09. US Physical Therapy's value of 16.52% is 58.8% below this benchmark. Historically, US Physical Therapy's own Gross Margin % has ranged from 18.46 to 23.67 over the past decade. While the company's 10-year median is 22.11 vs. the industry median of 40.09, US Physical Therapy 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 Healthcare Providers & Services company?
The median Gross Margin % among Healthcare Providers & Services companies is 40.09, based on 631 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. US Physical Therapy's current Gross Margin % of 16.52% is 58.8% 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 US Physical Therapy and its competitors. For the Healthcare Providers & Services industry, the median Gross Margin % is 40.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. US Physical Therapy's current Gross Margin % is 16.52%, which is 25% below median its own 10-year median of 22.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is US Physical Therapy stock overvalued right now?
Based on GuruFocus' analysis, US Physical Therapy (USPH) is currently considered Significantly Undervalued. The stock's GF Value™ is $107.62, compared to a current price of $65.56 — trading 39.1% below its estimated fair value. The current Gross Margin % is 16.52%, which is 25% below median its 10-year median of 22.11 and 58.8% below the Healthcare Providers & Services industry median of 40.09. US Physical Therapy's overall GF Score™ is 77/100 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 US Physical Therapy (USPH), the current Gross Margin % is 16.52% 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 US Physical Therapy (USPH) Overvalued in 2026?
Based on GuruFocus' analysis, US Physical Therapy stock appears to be undervalued.
The current stock price of $65.56 is trading 39.1% below its estimated GF Value™ of $107.62.
GuruFocus considers US Physical Therapy to be Significantly Undervalued.
Key valuation signals for USPH:
Gross Margin %: 16.52% (25% below median its 10-year median of 22.11)
GF Value™: $107.62 vs. price of $65.56 (39.1% below fair value)
Industry Position: 58.8% below the Healthcare Providers & Services median (#539 of 631)
No single metric tells the full story. See the USPH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
US Physical Therapy Inc through its subsidiaries operate outpatient physical therapy clinics that provide pre-and post-operative care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers, and neurological-related injuries. The principal payment sources for the clinics' services are managed care programs, commercial health insurance, Medicare/Medicaid, workers' compensation insurance, and proceeds from personal injury cases. Its operating segment includes Physical therapy operations and Industrial injury prevention services. The company generates maximum revenue from the Physical therapy operations segment.
77GF Score
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