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Easterly Government Properties (NYSE:DEA) 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
Easterly Government Properties had a gross margin of 68.25% 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.
Easterly Government Properties Gross Margin % Related Terms
Easterly Government Properties 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.
Easterly Government Properties Gross Margin % Chart
For the REIT - Office subindustry, Easterly Government Properties'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.
Easterly Government Properties Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Easterly Government Properties's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Easterly Government Properties'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.
Easterly Government Properties (DEA) has a Gross Margin % of 68.25% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Easterly Government Properties and its competitors. This is near median its historical median of 67.93. Over the past decade, Easterly Government Properties' Gross Margin % has ranged from 64.34 to 70.43. According to the industry distribution chart, Easterly Government Properties ranks #379 out of 678 companies in the REITs industry, placing it in the top 55.9%.
Is Easterly Government Properties' Gross Margin % too high?
Easterly Government Properties' current Gross Margin % of 68.25% is near median its 10-year median of 67.93. Over the past 10 years, this metric has ranged from a low of 64.34 to a high of 70.43. The REITs industry median Gross Margin % is 69.93. Easterly Government Properties' value of 68.25% is 2.4% below this industry median. Based on the distribution chart, Easterly Government Properties ranks #379 out of 678 companies in the REITs industry, which is below the industry midpoint. Overall, Easterly Government Properties has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Easterly Government Properties' Gross Margin % compare to PDM and HPP?
According to the REITs industry distribution chart, Easterly Government Properties ranks #379 out of 678 companies for Gross Margin %. This places Easterly Government Properties in the lower half of its industry. The industry median Gross Margin % is 69.93. Easterly Government Properties' value of 68.25% is 2.4% below this benchmark. Historically, Easterly Government Properties' own Gross Margin % has ranged from 64.34 to 70.43 over the past decade. While the company's 10-year median is 67.93 vs. the industry median of 69.93, Easterly Government Properties has consistently been below 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 69.93, based on 678 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. Easterly Government Properties's current Gross Margin % of 68.25% is 2.4% below 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 Easterly Government Properties and its competitors. For the REITs industry, the median Gross Margin % is 69.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Easterly Government Properties's current Gross Margin % is 68.25%, which is near median its own 10-year median of 67.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Easterly Government Properties stock overvalued right now?
Based on GuruFocus' analysis, Easterly Government Properties (DEA) is currently considered Modestly Undervalued. The stock's GF Value™ is $29.11, compared to a current price of $24.83 — trading 14.7% below its estimated fair value. The current Gross Margin % is 68.25%, which is near median its 10-year median of 67.93 and 2.4% below the REITs industry median of 69.93. Easterly Government Properties' overall GF Score™ is 71/100 with 10 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 Easterly Government Properties (DEA), the current Gross Margin % is 68.25% 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 Easterly Government Properties (DEA) Overvalued in 2026?
Based on GuruFocus' analysis, Easterly Government Properties stock appears to be undervalued.
The current stock price of $24.83 is trading 14.7% below its estimated GF Value™ of $29.11.
GuruFocus considers Easterly Government Properties to be Modestly Undervalued.
Key valuation signals for DEA:
Gross Margin %: 68.25% (near median its 10-year median of 67.93)
GF Value™: $29.11 vs. price of $24.83 (14.7% below fair value)
Industry Position: 2.4% below the REITs median (#379 of 678)
No single metric tells the full story. See the DEA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Easterly Government Properties Business Description
Easterly Government Properties Inc is a real estate investment trust. The company is engaged in the acquisition, development, and management of Class A commercial properties that are leased to U.S. government agencies. It generates all its revenue by leasing its properties to such agencies. The company operates in single segment for the purposes of assessing performance and making operating decisions.
71GF Score
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