Gross Margin % is calculated as gross profit divided by its revenue. Amrep's Gross Profit for the
three
months ended in Jan. 2024 was $1.75 Mil. Amrep's Revenue for the
three
months ended in Jan. 2024 was $12.69 Mil. Therefore, Amrep's Gross Margin % for the quarter that ended in Jan. 2024 was 13.82%.
The historical rank and industry rank for Amrep's Gross Margin % or its related term are showing as below:
AXR'
s Gross Margin % Range Over the Past 10 Years
Min: 15.52 Med: 42.04 Max: 95.52
Current: 31.55
During the past 13 years, the highestGross Margin % of Amrep was 95.52%. The lowest was 15.52%. And the median was 42.04%.
AXR's Gross Margin % is ranked worse than 57.19% of 1654
companies
in the Real Estate industry
Industry Median: 36.83
vs AXR: 31.55
Amrep had a gross margin of 13.82% for the quarter that ended in Jan. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Amrep was 13.60% per year.
Amrep Gross Margin % Historical Data
The historical data trend for Amrep'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.
For the Real Estate - Development subindustry, Amrep'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.
Amrep's Gross Margin % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Amrep's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Amrep's Gross Margin % falls into.
* 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.
Amrep (NYSE:AXR) 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
Amrep had a gross margin of 13.82% for the quarter that ended in Jan. 2024 => No sustainable 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.
Amrep Gross Margin % Related Terms
Thank you for viewing the detailed overview of Amrep's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Amrep Corp through its subsidiaries is engaged in the Real estate business. Its activities include land sales and lease activities, which involve the obtaining of approvals and the sale of both developed and undeveloped lots to homebuilders, commercial users, and others, as well as investments in commercial and investment properties. Its operating segments include Land development and Homebuilding. The firm generates a majority of its revenue from the Land development segment. Geographically, all the activities are carried out throughout the United States.
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