Gross Margin % is calculated as gross profit divided by its revenue. Target Hospitality's Gross Profit for the
three
months ended in Mar. 2022 was $27.9 Mil. Target Hospitality's Revenue for the
three
months ended in Mar. 2022 was $80.3 Mil. Therefore, Target Hospitality's Gross Margin % for the quarter that ended in Mar. 2022 was 34.75%.
The historical rank and industry rank for Target Hospitality's Gross Margin % or its related term are showing as below:
TH'
s Gross Margin % Range Over the Past 10 Years
Min: 25.39 Med: 37.5 Max: 45.78
Current: 36.12
During the past 5 years, the highestGross Margin % of Target Hospitality was 45.78%. The lowest was 25.39%. And the median was 37.50%.
TH's Gross Margin % is ranked better than 52.06% of 972
companies
in the Business Services industry
Industry Median: 34.55
vs TH: 36.12
Target Hospitality had a gross margin of 34.75% for the quarter that ended in Mar. 2022 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Target Hospitality was 0.00% per year.
Target Hospitality Gross Margin % Historical Data
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.
* Premium members only.
Target Hospitality Annual Data
Trend
Dec17
Dec18
Dec19
Dec20
Dec21
Gross Margin %
39.52
37.50
45.78
25.39
34.79
Target Hospitality Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Gross Margin %
25.19
36.10
37.69
35.76
34.75
Competitive Comparison
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 % Distribution
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.
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 34.75% for the quarter that ended in Mar. 2022 => 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.
Target Hospitality Gross Margin % Related Terms
Thank you for viewing the detailed overview of Target Hospitality's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
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. Its operating segment includes HFS-South and HFS-Midwest; Government; TCPL Keystone and others. It generates a majority of its revenue from the Government segment which consists primarily of specialty rental and vertically integrated hospitality services revenue from customers with Government contracts located in Texas.
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