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
Elme Communities had a gross margin of N/A% for the quarter that ended in Mar. 2026 => 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.
Elme Communities Gross Margin % Related Terms
Elme Communities Gross Margin % Historical Data
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The historical data trend for Elme Communities'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.
ELME vs FREVS, BRT, MRTI: Gross Margin % Comparison
For the REIT - Residential subindustry, Elme Communities'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.
Elme Communities Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Elme Communities's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Elme Communities'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.
Elme Communities (ELME) has a Gross Margin % of 0.00% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Elme Communities and its competitors. Over the past decade, Elme Communities' Gross Margin % has ranged from 59.31 to 63.80. According to the industry distribution chart, Elme Communities ranks #494 out of 680 companies in the REITs industry, placing it in the top 72.6%.
Is Elme Communities' Gross Margin % too high?
Elme Communities' current Gross Margin % is 0.00%. Over the past 10 years, this metric has ranged from a low of 59.31 to a high of 63.80. Based on the distribution chart, Elme Communities ranks #494 out of 680 companies in the REITs industry, which is below the industry midpoint. Overall, Elme Communities has a GF Score™ of 36/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Elme Communities' Gross Margin % compare to FREVS and BRT?
According to the REITs industry distribution chart, Elme Communities ranks #494 out of 680 companies for Gross Margin %. This places Elme Communities in the lower half of its industry. The industry median Gross Margin % is 69.71. Historically, Elme Communities' own Gross Margin % has ranged from 59.31 to 63.80 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 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. 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 Elme Communities 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. Elme Communities's current Gross Margin % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elme Communities stock overvalued right now?
Based on GuruFocus' analysis, Elme Communities (ELME) is currently considered Possible Value Trap. The stock's GF Value™ is $8.33, compared to a current price of $1.48 — trading 82.3% below its estimated fair value. The current Gross Margin % is 0.00%. Elme Communities' overall GF Score™ is 36/100 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 Elme Communities (ELME), the current Gross Margin % is 0.00% 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 Elme Communities (ELME) Overvalued in 2026?
Based on GuruFocus' analysis, Elme Communities stock appears to be undervalued.
The current stock price of $1.48 is trading 82.3% below its estimated GF Value™ of $8.33.
GuruFocus considers Elme Communities to be Possible Value Trap.
Key valuation signals for ELME:
Gross Margin %: 0.00%
GF Value™: $8.33 vs. price of $1.48 (82.3% below fair value)
No single metric tells the full story. See the ELME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elme Communities is a real estate investment trust engaged in owning and operating properties in the greater Washington DC metropolitan area. The company's real estate portfolio is comprised of office, retail, and multifamily properties located near transportation nodes. It derives nearly all of its income in the form of rental revenue from tenants organized into long-term leases. The company's office assets contribute the majority of this income, while the rest is split fairly evenly between its retail and multifamily locations. Elme Communities' tenants are banking, consulting, law, and financial services firms. The company operates in a single reportable segment which includes the ownership, development, redevelopment and acquisition of apartment communities.
36GF Score
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