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Target Hospitality Gross Margin %

: 34.75% (As of Mar. 2022)
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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 highest Gross 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 % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 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.



Target Hospitality Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Target Hospitality's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=101.4 / 291.337
=(Revenue - Cost of Goods Sold) / Revenue
=(291.337 - 189.987) / 291.337
=34.79 %

Target Hospitality's Gross Margin for the quarter that ended in Mar. 2022 is calculated as


Gross Margin % (Q: Mar. 2022 )=Gross Profit (Q: Mar. 2022 ) / Revenue (Q: Mar. 2022 )
=27.9 / 80.335
=(Revenue - Cost of Goods Sold) / Revenue
=(80.335 - 52.419) / 80.335
=34.75 %

* 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  (NAS:TH) 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

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 Business Description

Target Hospitality logo
Traded in Other Exchanges
Address
2170 Buckthorne Place, Suite 440, The Woodlands, Houston, TX, USA, 77380-1775
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.
Executives
Medler Linda R director 4505 W HANGING ROCK COURT MARANA AZ 85658
Patenaude Pamela H. director 26642 TOWNE CENTRE DRIVE C/O LOANDEPOT, INC. FOOTHILL RANCH CA 92610
Faulkenberry Barbara J director 3200 INDUSTRIAL PARK ROAD VAN BUREN AR 72956
Kelley John Travis officer: EVP - Operations 2170 BUCKTHORNE PLACE, SUITE 440 SUITE 440 THE WOODLANDS TX 77380
Berry Joy Anne director 2170 BUCKTHORNE PLACE, SUITE 440 THE WOODLANDS TX 77380
Kalamaras Eric officer: EVP and CFO ATLAS PIPELINE PARTNERS, GP 110 W. 7TH, SUITE 2300 TULSA OK 74119
Sagansky Jeffrey director 1450 2ND STREET SUITE 247 SANTA MONICA CA 90401
Baker Eli director 416 BEIRUT AVENUE PACIFIC PALISADES CA 90272
Algeco Limited Partnership Slp 10 percent owner 20 RUE EUGENE RUPPERT LUXEMBOURG CITY N4 L-2453
Archer James B. director, officer: President and CEO C/O TARGET HOSPITALITY 2170 BUCKTHORNE PLACE, SUITE 440 THE WOODLANDS TX 77380
Algeco Investments 2 S.a.r.l. 10 percent owner 20 RUE EUGENE RUPPERT LUXEMBOURG CITY N4 L-2453
Algeco Investments 1 S.a.r.l. 10 percent owner 20 RUE EUGENE RUPPERT LUXEMBOURG CITY N4 L-2453
Algeco Global S.a.r.l. 10 percent owner 20 RUE EUGENE RUPPERT LUXEMBOURG CITY N4 L-2453
Algeco Holding S.a.r.l. 10 percent owner 20 RUE EUGENE RUPPERT LUXEMBOURG CITY N4 L-2453
Arrow Holdings S.a.r.l. 10 percent owner 20 RUE EUGENE RUPPERT LUXEMBOURG N4 L-2453

Target Hospitality Headlines

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