HealthCo Healthcare and Wellness REIT (ASX:HCW) 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
HealthCo Healthcare and Wellness REIT had a gross margin of 88.85% 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.
HealthCo Healthcare and Wellness REIT Gross Margin % Related Terms
HealthCo Healthcare and Wellness 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.
HealthCo Healthcare and Wellness REIT Gross Margin % Chart
HealthCo Healthcare and Wellness REIT Annual Data
Trend
Jun22
Jun23
Jun24
Jun25
Gross Margin %
66.67
60.45
73.44
68.11
HealthCo Healthcare and Wellness REIT Semi-Annual Data
ASX:HCW vs WELL, VTR, OHI: Gross Margin % Comparison
For the REIT - Healthcare Facilities subindustry, HealthCo Healthcare and Wellness 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.
HealthCo Healthcare and Wellness REIT Gross Margin % vs REITs Industry
* 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.
HealthCo Healthcare and Wellness REIT (ASX:HCW) has a Gross Margin % of 88.85% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on HealthCo Healthcare and Wellness REIT and its competitors. This is 32% above median its historical median of 67.39. Over the past decade, HealthCo Healthcare and Wellness REIT's Gross Margin % has ranged from 60.45 to 73.44. According to the industry distribution chart, HealthCo Healthcare and Wellness REIT ranks #302 out of 682 companies in the REITs industry, placing it in the top 44.3%.
Is HealthCo Healthcare and Wellness REIT's Gross Margin % too high?
HealthCo Healthcare and Wellness REIT's current Gross Margin % of 88.85% is 32% above median its 10-year median of 67.39. Over the past 10 years, this metric has ranged from a low of 60.45 to a high of 73.44. The REITs industry median Gross Margin % is 69.71. HealthCo Healthcare and Wellness REIT's value of 88.85% is 27.5% above this industry median. Based on the distribution chart, HealthCo Healthcare and Wellness REIT ranks #302 out of 682 companies in the REITs industry, which is above the industry midpoint. Overall, HealthCo Healthcare and Wellness REIT has a GF Score™ of 37/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HealthCo Healthcare and Wellness REIT's Gross Margin % compare to WELL and VTR?
According to the REITs industry distribution chart, HealthCo Healthcare and Wellness REIT ranks #302 out of 682 companies for Gross Margin %. This puts HealthCo Healthcare and Wellness REIT in the upper half of its industry. The industry median Gross Margin % is 69.71. HealthCo Healthcare and Wellness REIT's value of 88.85% is 27.5% above this benchmark. Historically, HealthCo Healthcare and Wellness REIT's own Gross Margin % has ranged from 60.45 to 73.44 over the past decade. While the company's 10-year median is 67.39 vs. the industry median of 69.71, HealthCo Healthcare and Wellness 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 69.71, based on 682 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. HealthCo Healthcare and Wellness REIT's current Gross Margin % of 88.85% is 27.5% 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 HealthCo Healthcare and Wellness REIT and its competitors. For the REITs industry, the median Gross Margin % is 69.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HealthCo Healthcare and Wellness REIT's current Gross Margin % is 88.85%, which is 32% above median its own 10-year median of 67.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HealthCo Healthcare and Wellness REIT stock overvalued right now?
Based on GuruFocus' analysis, HealthCo Healthcare and Wellness REIT (ASX:HCW) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.99, compared to a current price of A$0.70 — trading 29.3% below its estimated fair value. The current Gross Margin % is 88.85%, which is 32% above median its 10-year median of 67.39 and 27.5% above the REITs industry median of 69.71. HealthCo Healthcare and Wellness REIT's overall GF Score™ is 37/100 with 5 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 HealthCo Healthcare and Wellness REIT (ASX:HCW), the current Gross Margin % is 88.85% 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 HealthCo Healthcare and Wellness REIT (ASX:HCW) Overvalued in 2026?
Based on GuruFocus' analysis, HealthCo Healthcare and Wellness REIT stock appears to be undervalued.
The current stock price of A$0.70 is trading 29.3% below its estimated GF Value™ of A$0.99.
GuruFocus considers HealthCo Healthcare and Wellness REIT to be Modestly Undervalued.
Key valuation signals for ASX:HCW:
Gross Margin %: 88.85% (32% above median its 10-year median of 67.39)
GF Value™: A$0.99 vs. price of A$0.70 (29.3% below fair value)
Industry Position: 27.5% above the REITs median (#302 of 682)
No single metric tells the full story. See the ASX:HCW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HealthCo Healthcare and Wellness REIT Business Description
HealthCo Healthcare and Wellness REIT are owning and managing a portfolio of commercial health and wellness real estate assets. It invests in high conviction and scalable real asset strategies on behalf of individuals, large institutions and super funds.
37GF Score
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