DLH Holdings Corp gross margin has been in long-term decline. The average rate of decline per year is -1.6%.
The historical rank and industry rank for DLH Holdings's Gross Margin % or its related term are showing as below:
DLHC'
s Gross Margin % Range Over the Past 10 Years
Min: 14.81 Med: 20.92 Max: 22.35
Current: 20.83
During the past 13 years, the highestGross Margin % of DLH Holdings was 22.35%. The lowest was 14.81%. And the median was 20.92%.
DLHC's Gross Margin % is ranked worse than 75.33% of 993
companies
in the Business Services industry
Industry Median: 34.65
vs DLHC: 20.83
DLH Holdings had a gross margin of 19.18% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for DLH Holdings was -1.60% per year.
DLH Holdings Gross Margin % Historical Data
The historical data trend for DLH 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.
Competitive Comparison of DLH Holdings's Gross Margin %
For the Specialty Business Services subindustry, DLH 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.
DLH Holdings's Gross Margin % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, DLH Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where DLH 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.
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
DLH Holdings had a gross margin of 19.18% for the quarter that ended in Dec. 2023 => 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.
DLH Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of DLH Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
DLH Holdings Corp is a provider of technology-enabled business process outsourcing and program management solutions in the United States. The company offers services to several government agencies which include the Department of Veteran Affairs. It is engaged in public health, performance evaluation, and health operations to solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, analytics, cloud-based applications, and telehealth systems.
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