CTO Realty GrowthCTO +2.84%73 Gross Margin % is 75.30% as of Mar. 2026, which is 3% above its 10-year median of 73.17. GuruFocus rates CTO with a GF Score™ of 73/100 and a GF Value™ of $18.50 (Modestly Overvalued). The stock has 12 warning signs investors should review. Among 680 REITs companies, CTO Realty Growth ranks better than 61.32% on this metric.
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
CTO Realty Growth had a gross margin of 75.30% for the quarter that ended in Mar. 2026 => 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.
CTO Realty Growth Gross Margin % Related Terms
CTO Realty Growth Gross Margin % Historical Data
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The historical data trend for CTO Realty Growth'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.
CTO vs GOOD, JBGS, AHRT: Gross Margin % Comparison
For the REIT - Diversified subindustry, CTO Realty Growth'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.
CTO Realty Growth Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, CTO Realty Growth's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CTO Realty Growth'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.
CTO Realty Growth (CTO) has a Gross Margin % of 75.30% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on CTO Realty Growth and its competitors. This is near median its historical median of 73.17. Over the past decade, CTO Realty Growth's Gross Margin % has ranged from 68.08 to 84.19. According to the industry distribution chart, CTO Realty Growth ranks #263 out of 680 companies in the REITs industry, placing it in the top 38.7%.
Is CTO Realty Growth's Gross Margin % too high?
CTO Realty Growth's current Gross Margin % of 75.30% is near median its 10-year median of 73.17. Over the past 10 years, this metric has ranged from a low of 68.08 to a high of 84.19. The REITs industry median Gross Margin % is 69.71. CTO Realty Growth's value of 75.30% is 8% above this industry median. Based on the distribution chart, CTO Realty Growth ranks #263 out of 680 companies in the REITs industry, which is above the industry midpoint. Overall, CTO Realty Growth has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does CTO Realty Growth's Gross Margin % compare to GOOD and JBGS?
According to the REITs industry distribution chart, CTO Realty Growth ranks #263 out of 680 companies for Gross Margin %. This puts CTO Realty Growth in the upper half of its industry. The industry median Gross Margin % is 69.71. CTO Realty Growth's value of 75.30% is 8% above this benchmark. Historically, CTO Realty Growth's own Gross Margin % has ranged from 68.08 to 84.19 over the past decade. While the company's 10-year median is 73.17 vs. the industry median of 69.71, CTO Realty Growth 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 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. CTO Realty Growth's current Gross Margin % of 75.30% is 8% 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 CTO Realty Growth 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. CTO Realty Growth's current Gross Margin % is 75.30%, which is near median its own 10-year median of 73.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CTO Realty Growth stock overvalued right now?
Based on GuruFocus' analysis, CTO Realty Growth (CTO) is currently considered Modestly Overvalued. The stock's GF Value™ is $18.50, compared to a current price of $21.74 — trading 17.5% above its estimated fair value. The current Gross Margin % is 75.30%, which is near median its 10-year median of 73.17 and 8% above the REITs industry median of 69.71. CTO Realty Growth's overall GF Score™ is 73/100 with 12 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 CTO Realty Growth (CTO), the current Gross Margin % is 75.30% as of Mar. 2026. 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 CTO Realty Growth (CTO) Overvalued in 2026?
Based on GuruFocus' analysis, CTO Realty Growth stock appears to be overvalued.
The current stock price of $21.74 is trading 17.5% above its estimated GF Value™ of $18.50.
GuruFocus considers CTO Realty Growth to be Modestly Overvalued.
Key valuation signals for CTO:
Gross Margin %: 75.30% (near median its 10-year median of 73.17)
GF Value™: $18.50 vs. price of $21.74 (17.5% above fair value)
Industry Position: 8% above the REITs median (#263 of 680)
No single metric tells the full story. See the CTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CTO Realty Growth Inc is a real estate investment trust company, that owns income properties in diversified markets in the United States. The company operates in four primary business segments: Income properties, management services, commercial loans and investments, and real estate operations. It derives maximum revenue from Income Properties.
73GF Score
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