Dream Homes & DevelopmentDREM Gross Margin % is -48.92% as of Dec. 2025. The stock has 4 warning signs investors should review. Among 90 Homebuilding & Construction companies, Dream Homes & Development ranks worse than 54.44% on this metric.
Dream Homes & Development (OTCPK:DREM) 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
Dream Homes & Development had a gross margin of -48.92% for the quarter that ended in Dec. 2025 => No sustainable 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.
Dream Homes & Development Gross Margin % Related Terms
Dream Homes & Development 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 Residential Construction subindustry, Dream Homes & Development'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.
Dream Homes & Development Gross Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Dream Homes & Development's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dream Homes & Development'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.
Dream Homes & Development (DREM) has a Gross Margin % of -48.92% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Dream Homes & Development and its competitors. Over the past decade, Dream Homes & Development's Gross Margin % has ranged from 17.11 to 45.51. According to the industry distribution chart, Dream Homes & Development ranks #49 out of 90 companies in the Homebuilding & Construction industry, placing it in the top 54.4%.
Is Dream Homes & Development's Gross Margin % too high?
Dream Homes & Development's current Gross Margin % is -48.92%. Over the past 10 years, this metric has ranged from a low of 17.11 to a high of 45.51. Based on the distribution chart, Dream Homes & Development ranks #49 out of 90 companies in the Homebuilding & Construction industry, which is below the industry midpoint.
How does Dream Homes & Development's Gross Margin % compare to BDCC and DHI?
According to the Homebuilding & Construction industry distribution chart, Dream Homes & Development ranks #49 out of 90 companies for Gross Margin %. This places Dream Homes & Development in the lower half of its industry. The industry median Gross Margin % is 21.34. Historically, Dream Homes & Development's own Gross Margin % has ranged from 17.11 to 45.51 over the past decade. 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 Homebuilding & Construction company?
The median Gross Margin % among Homebuilding & Construction companies is 21.34, based on 90 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. 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 Dream Homes & Development and its competitors. For the Homebuilding & Construction industry, the median Gross Margin % is 21.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dream Homes & Development's current Gross Margin % is -48.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dream Homes & Development stock overvalued right now?
Based on GuruFocus' analysis, Dream Homes & Development (DREM) is currently considered Significantly Undervalued. The stock's GF Value™ is $0.03, compared to a current price of $0.01 — trading 55.7% below its estimated fair value. The current Gross Margin % is -48.92%. 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 Dream Homes & Development (DREM), the current Gross Margin % is -48.92% 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.
Dream Homes & Development Corp is a regional builder and developer of new single and multi-family homes and subdivisions, as well as a market leader in real estate development. Operations include custom homes, Build to Lease, Build for Sale and Sale of Improved Lots to national builders.
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