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
Dexus Convenience Retail REIT had a gross margin of 73.10% 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.
Dexus Convenience Retail REIT Gross Margin % Related Terms
Dexus Convenience Retail 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.
For the REIT - Retail subindustry, Dexus Convenience Retail 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.
Dexus Convenience Retail REIT Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Dexus Convenience Retail REIT's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dexus Convenience Retail 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.
Dexus Convenience Retail REIT (ASX:DXC) has a Gross Margin % of 73.10% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Dexus Convenience Retail REIT and its competitors. This is near median its historical median of 80.73. Over the past decade, Dexus Convenience Retail REIT's Gross Margin % has ranged from 73.67 to 91.45. According to the industry distribution chart, Dexus Convenience Retail REIT ranks #280 out of 681 companies in the REITs industry, placing it in the top 41.1%.
Is Dexus Convenience Retail REIT's Gross Margin % too high?
Dexus Convenience Retail REIT's current Gross Margin % of 73.10% is near median its 10-year median of 80.73. Over the past 10 years, this metric has ranged from a low of 73.67 to a high of 91.45. The REITs industry median Gross Margin % is 69.62. Dexus Convenience Retail REIT's value of 73.10% is 5% above this industry median. Based on the distribution chart, Dexus Convenience Retail REIT ranks #280 out of 681 companies in the REITs industry, which is above the industry midpoint. Overall, Dexus Convenience Retail REIT has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dexus Convenience Retail REIT's Gross Margin % compare to SPG and O?
According to the REITs industry distribution chart, Dexus Convenience Retail REIT ranks #280 out of 681 companies for Gross Margin %. This puts Dexus Convenience Retail REIT in the upper half of its industry. The industry median Gross Margin % is 69.62. Dexus Convenience Retail REIT's value of 73.10% is 5% above this benchmark. Historically, Dexus Convenience Retail REIT's own Gross Margin % has ranged from 73.67 to 91.45 over the past decade. While the company's 10-year median is 80.73 vs. the industry median of 69.62, Dexus Convenience Retail 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 69.62, based on 681 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. Dexus Convenience Retail REIT's current Gross Margin % of 73.10% is 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 Dexus Convenience Retail REIT and its competitors. For the REITs industry, the median Gross Margin % is 69.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dexus Convenience Retail REIT's current Gross Margin % is 73.10%, which is near median its own 10-year median of 80.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dexus Convenience Retail REIT stock overvalued right now?
Based on GuruFocus' analysis, Dexus Convenience Retail REIT (ASX:DXC) is currently considered Fairly Valued. The stock's GF Value™ is A$2.57, compared to a current price of A$2.62 — trading 1.9% above its estimated fair value. The current Gross Margin % is 73.10%, which is near median its 10-year median of 80.73 and 5% above the REITs industry median of 69.62. Dexus Convenience Retail REIT's overall GF Score™ is 78/100 with 7 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 Dexus Convenience Retail REIT (ASX:DXC), the current Gross Margin % is 73.10% 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 Dexus Convenience Retail REIT (ASX:DXC) Overvalued in 2026?
Based on GuruFocus' analysis, Dexus Convenience Retail REIT stock appears to be overvalued.
The current stock price of A$2.62 is trading 1.9% above its estimated GF Value™ of A$2.57.
GuruFocus considers Dexus Convenience Retail REIT to be Fairly Valued.
Key valuation signals for ASX:DXC:
Gross Margin %: 73.10% (near median its 10-year median of 80.73)
GF Value™: A$2.57 vs. price of A$2.62 (1.9% above fair value)
Industry Position: 5% above the REITs median (#280 of 681)
No single metric tells the full story. See the ASX:DXC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dexus Convenience Retail REIT Business Description
Dexus Convenience Retail REIT is an Australian real estate investment trust. The company owns a portfolio of service stations and convenience retail assets located across Australia. The company derives all income from investments in properties located in Australia. The principal investment objective of the group is to invest in convenience retail properties that provide investors with a high and consistent income distribution that maintains its real value for the life of the group.
78GF Score
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