DLHC (DLH Holdings) Operating Margin %: -0.09% (As of Mar. 2026)


DLHC DLH Holdings Corp DLHC
74 GF Score
Price $5.25
GF Value $5.48
Valuation Fairly Valued
! 7 Warning Signs
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What is DLH Holdings Operating Margin %?

DLH Holdings DLHC -0.94% 74 Operating Margin % is -0.09% as of Mar. 2026. GuruFocus rates DLHC with a GF Score™ of 74/100 and a GF Value™ of $5.48 (Fairly Valued). The stock has 7 warning signs investors should review. Among 1,070 Business Services companies, DLH Holdings ranks worse than 67.38% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. DLH Holdings's Operating Income for the three months ended in Mar. 2026 was $-0.1 Mil. DLH Holdings's Revenue for the three months ended in Mar. 2026 was $59.3 Mil. Therefore, DLH Holdings's Operating Margin % for the quarter that ended in Mar. 2026 was -0.09%.

Warning Sign:

DLH Holdings Corp operating margin has been in a 5-year decline. The average rate of decline per year is -5.4%.

The historical rank and industry rank for DLH Holdings's Operating Margin % or its related term are showing as below:

DLHC' s Operating Margin % Range Over the Past 10 Years
Min: 2.53   Med: 6.51   Max: 8.42
Current: 2.53


DLHC's Operating Margin % is ranked worse than
67.38% of 1070 companies
in the Business Services industry
Industry Median: 6.33 vs DLHC: 2.53

DLH Holdings's 5-Year Average Operating Margin % Growth Rate was -5.40% per year.

DLH Holdings's Operating Income for the three months ended in Mar. 2026 was $-0.1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $7.4 Mil.


DLH Holdings  (NAS:DLHC) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


DLH Holdings Operating Margin % Related Terms


DLH Holdings Operating Margin % Historical Data

* Premium members only.

The historical data trend for DLH Holdings's Operating 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.

DLH Holdings Operating Margin % Chart

DLH Holdings Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.00 8.42 6.59 6.29 4.87

DLH Holdings Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial 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 5.73 4.51 2.81 2.08 -0.09

DLHC vs TISI, ANPA, WFCF: Operating Margin % Comparison

For the Specialty Business Services subindustry, DLH Holdings's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Business Services Industry

For the Business Services industry and Industrials sector, DLH Holdings's Operating Margin % distribution charts can be found below:

* The bar in red indicates where DLH Holdings's Operating Margin % falls into.


DLHC
74GF Score
DLH Holdings Corp DLHC
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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DLH Holdings Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

DLH Holdings's Operating Margin % for the fiscal year that ended in Sep. 2025 is calculated as

Operating Margin %=Operating Income (A: Sep. 2025 ) / Revenue (A: Sep. 2025 )
=16.786 / 344.497
=4.87 %

DLH Holdings's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=-0.055 / 59.265
=-0.09 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -0.09% mean?
DLH Holdings (DLHC) has a Operating Margin % of -0.09% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on DLH Holdings and its competitors. Over the past decade, DLH Holdings' Operating Margin % has ranged from 2.53 to 8.42. According to the industry distribution chart, DLH Holdings ranks #721 out of 1070 companies in the Business Services industry, placing it in the top 67.4%.
Is DLH Holdings' Operating Margin % too high?
DLH Holdings' current Operating Margin % is -0.09%. Over the past 10 years, this metric has ranged from a low of 2.53 to a high of 8.42. Based on the distribution chart, DLH Holdings ranks #721 out of 1070 companies in the Business Services industry, which is below the industry midpoint. Overall, DLH Holdings has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does DLH Holdings' Operating Margin % compare to TISI and ANPA?
According to the Business Services industry distribution chart, DLH Holdings ranks #721 out of 1070 companies for Operating Margin %. This places DLH Holdings in the lower half of its industry. The industry median Operating Margin % is 6.33. Historically, DLH Holdings' own Operating Margin % has ranged from 2.53 to 8.42 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Business Services company?
The median Operating Margin % among Business Services companies is 6.33, based on 1,070 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on DLH Holdings and its competitors. For the Business Services industry, the median Operating Margin % is 6.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DLH Holdings's current Operating Margin % is -0.09%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DLH Holdings stock overvalued right now?
Based on GuruFocus' analysis, DLH Holdings (DLHC) is currently considered Fairly Valued. The stock's GF Value™ is $5.48, compared to a current price of $5.25 — trading 4.2% below its estimated fair value. The current Operating Margin % is -0.09%. DLH Holdings' overall GF Score™ is 74/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For DLH Holdings (DLHC), the current Operating Margin % is -0.09% 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 DLH Holdings (DLHC) Overvalued in 2026?

Based on GuruFocus' analysis, DLH Holdings stock appears to be undervalued. The current stock price of $5.25 is trading 4.2% below its estimated GF Value™ of $5.48. GuruFocus considers DLH Holdings to be Fairly Valued.

Key valuation signals for DLHC:

  • Operating Margin %: -0.09%
  • GF Value™: $5.48 vs. price of $5.25 (4.2% below fair value)
  • GF Score™: 74/100 with 7 warning signs

No single metric tells the full story. See the DLHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


DLH Holdings Business Description

Other Exchanges TS8A:Germany
Address 3565 Piedmont Road, Building 3, Suite 700, Atlanta, GA, USA, 30305
DLH Holdings Corp delivers health and readiness solutions for federal government customers through digital transformation and cyber security, science research and development, and systems engineering and integration. It provides technology-enabled business process, program management, and digital transformation solutions to U.S. government agencies, focusing on large-scale, technology-powered health and defense initiatives for agencies including HHS, VA, DoD, and their sub-agencies. Its revenues come from technology-enabled business process outsourcing, program management solutions, and public health research and analytics under time-and-materials, cost-reimbursable, and firm-fixed-price contracts.
74GF Score

Get the complete analysis for DLHC

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$5.25
Price
$5.48
GF Value