HLTCAUTIOUS

Gross Margin

29.0%

Updated 272h ago

Sector Performance

23th percentile

HLT

29.0%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying the direct costs of providing its services; a 29.0% margin means HLT retains $0.29 from every dollar of sales.

That figure sits well below the sector median of 43.9%, placing HLT in the 24th percentile among its peers — only about a quarter of competitors have a lower margin. Year-over-year and quarter-over-quarter changes are both listed as N/A, so no trend data is available to assess direction over the last eight quarters. With only a single data point and no trend to confirm improvement or deterioration, the low margin relative to peers suggests HLT may be less efficient or face structural cost disadvantages. This weaker profitability profile raises the risk that the company could struggle to generate sustainable earnings compared to its industry. The 29.0% gross margin directly contradicts any bullish case and supports the overall CAUTIOUS verdict, as it highlights a fundamental competitive shortfall.

Frequently Asked Questions

What does the Gross Margin tell investors about HLT?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are HLT's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.