Charter Hall Long WALE REIT (ASX:CLW) 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
Charter Hall Long WALE REIT had a gross margin of 83.21% for the quarter that ended in Dec. 2025 => 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.
Charter Hall Long WALE REIT Gross Margin % Related Terms
Charter Hall Long WALE REIT Gross Margin % Historical Data
* 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.
ASX:CLW vs VICI, WPC, BNL: Gross Margin % Comparison
For the REIT - Diversified subindustry, Charter Hall Long WALE REIT'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.
Charter Hall Long WALE REIT Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Charter Hall Long WALE REIT's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Charter Hall Long WALE REIT'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.
Charter Hall Long WALE REIT (ASX:CLW) has a Gross Margin % of 83.21% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Charter Hall Long WALE REIT and its competitors. This is 14% above median its historical median of 73.04. Over the past decade, Charter Hall Long WALE REIT's Gross Margin % has ranged from 68.54 to 86.34. According to the industry distribution chart, Charter Hall Long WALE REIT ranks #346 out of 680 companies in the REITs industry, placing it in the top 50.9%.
Is Charter Hall Long WALE REIT's Gross Margin % too high?
Charter Hall Long WALE REIT's current Gross Margin % of 83.21% is 14% above median its 10-year median of 73.04. Over the past 10 years, this metric has ranged from a low of 68.54 to a high of 86.34. The REITs industry median Gross Margin % is 69.61. Charter Hall Long WALE REIT's value of 83.21% is 19.5% above this industry median. Based on the distribution chart, Charter Hall Long WALE REIT ranks #346 out of 680 companies in the REITs industry, which is below the industry midpoint. Overall, Charter Hall Long WALE REIT has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Charter Hall Long WALE REIT's Gross Margin % compare to VICI and WPC?
According to the REITs industry distribution chart, Charter Hall Long WALE REIT ranks #346 out of 680 companies for Gross Margin %. This places Charter Hall Long WALE REIT in the lower half of its industry. The industry median Gross Margin % is 69.61. Charter Hall Long WALE REIT's value of 83.21% is 19.5% above this benchmark. Historically, Charter Hall Long WALE REIT's own Gross Margin % has ranged from 68.54 to 86.34 over the past decade. While the company's 10-year median is 73.04 vs. the industry median of 69.61, Charter Hall Long WALE REIT has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a REITs company?
The median Gross Margin % among REITs companies is 69.61, based on 680 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Charter Hall Long WALE REIT's current Gross Margin % of 83.21% is 19.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Charter Hall Long WALE REIT and its competitors. For the REITs industry, the median Gross Margin % is 69.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Charter Hall Long WALE REIT's current Gross Margin % is 83.21%, which is 14% above median its own 10-year median of 73.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Charter Hall Long WALE REIT stock overvalued right now?
Based on GuruFocus' analysis, Charter Hall Long WALE REIT (ASX:CLW) is currently considered Possible Value Trap. The stock's GF Value™ is A$6.07, compared to a current price of A$3.79 — trading 37.6% below its estimated fair value. The current Gross Margin % is 83.21%, which is 14% above median its 10-year median of 73.04 and 19.5% above the REITs industry median of 69.61. Charter Hall Long WALE REIT's overall GF Score™ is 75/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Charter Hall Long WALE REIT (ASX:CLW), the current Gross Margin % is 83.21% as of Dec. 2025. 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 Charter Hall Long WALE REIT (ASX:CLW) Overvalued in 2026?
Based on GuruFocus' analysis, Charter Hall Long WALE REIT stock appears to be undervalued.
The current stock price of A$3.79 is trading 37.6% below its estimated GF Value™ of A$6.07.
GuruFocus considers Charter Hall Long WALE REIT to be Possible Value Trap.
Key valuation signals for ASX:CLW:
Gross Margin %: 83.21% (14% above median its 10-year median of 73.04)
GF Value™: A$6.07 vs. price of A$3.79 (37.6% below fair value)
Industry Position: 19.5% above the REITs median (#346 of 680)
No single metric tells the full story. See the ASX:CLW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Charter Hall Long WALE REIT is a listed investment vehicle established and managed by Charter Hall Group. The REIT pays management fees to the parent group. There are over 500 properties on balance sheet and in joint ventures, spanning retail, industrial, office, data centers and social infrastructure. The portfolio typically has near full occupancy and long weighted average lease expiry, or WALE, of around 10 years. About half the leases are subject to annual inflation-linked rental uplifts, and half to fixed annual increases (typically 3%). One third of the REIT's income is rents collected from the properties held on its own balance sheet and the rest is co-investment earnings from a dozen joint ventures.
75GF Score
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