HSTNEUTRAL

Gross Margin

54.9%

Updated 272h ago

Sector Performance

64th percentile

HST

54.9%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin represents the percentage of revenue a company keeps after paying the direct costs of producing its goods or services—here, 54.9% means HST retains about $0.55 of every dollar in sales.

This is above the sector median of 43.9%, placing HST in the 65th percentile among its industry peers, meaning it outperforms the majority. Over the last eight quarters the trend is increasing, though the year-over-year change is not available; the quarter-over-quarter change is +503.3%, driven by a jump from 9.1% to 54.9%. A high and sharply rising gross margin can signal improving pricing power or cost control, but the extreme QoQ leap suggests a possible one-time effect or restatement rather than organic progression. The combination of a strong current level and upward trajectory reduces immediate profitability risk, though the magnitude of the spike demands scrutiny. This metric supports the overall NEUTRAL verdict—the margin is positive but isolated, and the unusual increase does not alone warrant a bullish or bearish reclassification.

Frequently Asked Questions

What does the Gross Margin tell investors about HST?

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 HST'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.