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Growthpoint Properties (Growthpoint Properties) Gross Margin % : 70.47% (As of Dec. 2023)


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What is Growthpoint Properties Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Growthpoint Properties's Gross Profit for the six months ended in Dec. 2023 was $269.3 Mil. Growthpoint Properties's Revenue for the six months ended in Dec. 2023 was $382.2 Mil. Therefore, Growthpoint Properties's Gross Margin % for the quarter that ended in Dec. 2023 was 70.47%.

Warning Sign:

Growthpoint Properties Ltd gross margin has been in long-term decline. The average rate of decline per year is -2%.


The historical rank and industry rank for Growthpoint Properties's Gross Margin % or its related term are showing as below:

GWWTF' s Gross Margin % Range Over the Past 10 Years
Min: 70.69   Med: 77.81   Max: 82.15
Current: 70.69


During the past 13 years, the highest Gross Margin % of Growthpoint Properties was 82.15%. The lowest was 70.69%. And the median was 77.81%.

GWWTF's Gross Margin % is ranked better than
52.93% of 631 companies
in the REITs industry
Industry Median: 68.98 vs GWWTF: 70.69

Growthpoint Properties had a gross margin of 70.47% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Growthpoint Properties was -2.00% per year.


Growthpoint Properties Gross Margin % Historical Data

The historical data trend for Growthpoint Properties'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.

Growthpoint Properties Gross Margin % Chart

Growthpoint Properties Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 77.27 75.67 73.24 72.39 71.12

Growthpoint Properties Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Gross 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 72.66 72.12 71.32 70.92 70.47

Competitive Comparison of Growthpoint Properties's Gross Margin %

For the REIT - Diversified subindustry, Growthpoint Properties'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.


Growthpoint Properties's Gross Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Growthpoint Properties's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Growthpoint Properties's Gross Margin % falls into.



Growthpoint Properties Gross Margin % Calculation

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

Growthpoint Properties's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=521.3 / 733.003
=(Revenue - Cost of Goods Sold) / Revenue
=(733.003 - 211.685) / 733.003
=71.12 %

Growthpoint Properties's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=269.3 / 382.176
=(Revenue - Cost of Goods Sold) / Revenue
=(382.176 - 112.866) / 382.176
=70.47 %

* 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.


Growthpoint Properties  (OTCPK:GWWTF) 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

Growthpoint Properties had a gross margin of 70.47% for the quarter that ended in Dec. 2023 => Durable competitive advantage


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.


Growthpoint Properties Gross Margin % Related Terms

Thank you for viewing the detailed overview of Growthpoint Properties's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Growthpoint Properties (Growthpoint Properties) Business Description

Traded in Other Exchanges
Address
The Place, 1 Sandton Drive, PO Box 78949, Sandton, GT, ZAF, 2196
Growthpoint Properties Ltd is a property investment holding company engaged in the ownership of a variety of properties in South Africa and Australia. The company generates majority of its revenue from the Retail and office segments. These buildings, which are mainly office parks and low rises, are also Growthpoint's maximum valuable real estate assets. The operating segments of the company include Retail, Office, Industrial, Trading and Development, V&A Waterfront, Healthcare (GHPH), Student Accommodation (GSAH), Lango, GWI, GOZ and C&R.