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The RMR Group (FRA:26R) Gross Margin % : 36.26% (As of Sep. 2024)


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What is The RMR Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. The RMR Group's Gross Profit for the three months ended in Sep. 2024 was €69.5 Mil. The RMR Group's Revenue for the three months ended in Sep. 2024 was €191.7 Mil. Therefore, The RMR Group's Gross Margin % for the quarter that ended in Sep. 2024 was 36.26%.

Warning Sign:

The RMR Group Inc gross margin has been in long-term decline. The average rate of decline per year is -8.3%.


The historical rank and industry rank for The RMR Group's Gross Margin % or its related term are showing as below:

FRA:26R' s Gross Margin % Range Over the Past 10 Years
Min: 31.68   Med: 38.95   Max: 68.75
Current: 32.14


During the past 12 years, the highest Gross Margin % of The RMR Group was 68.75%. The lowest was 31.68%. And the median was 38.95%.

FRA:26R's Gross Margin % is ranked worse than
56.58% of 1642 companies
in the Real Estate industry
Industry Median: 36.125 vs FRA:26R: 32.14

The RMR Group had a gross margin of 36.26% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for The RMR Group was -8.30% per year.


The RMR Group Gross Margin % Historical Data

The historical data trend for The RMR Group'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.

* Premium members only.

The RMR Group Gross Margin % Chart

The RMR Group Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.83 39.06 31.68 31.79 32.14

The RMR Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.71 25.10 33.30 35.59 36.26

Competitive Comparison of The RMR Group's Gross Margin %

For the Real Estate Services subindustry, The RMR Group'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.


The RMR Group's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, The RMR Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where The RMR Group's Gross Margin % falls into.



The RMR Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

The RMR Group's Gross Margin for the fiscal year that ended in Sep. 2024 is calculated as

Gross Margin % (A: Sep. 2024 )=Gross Profit (A: Sep. 2024 ) / Revenue (A: Sep. 2024 )
=259.9 / 808.749
=(Revenue - Cost of Goods Sold) / Revenue
=(808.749 - 548.844) / 808.749
=32.14 %

The RMR Group's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=69.5 / 191.655
=(Revenue - Cost of Goods Sold) / Revenue
=(191.655 - 122.158) / 191.655
=36.26 %

* 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.


The RMR Group  (FRA:26R) 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

The RMR Group had a gross margin of 36.26% for the quarter that ended in Sep. 2024 => Competition eroding margins


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.


The RMR Group Gross Margin % Related Terms

Thank you for viewing the detailed overview of The RMR Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


The RMR Group Business Description

Traded in Other Exchanges
Address
255 Washington Street, Suite 300, Two Newton Place, Newton, MA, USA, 02458-1634
The RMR Group Inc is a holding company that conducts its business through its subsidiary, which is an alternative asset management company that invests in real estate and manages real estate-related businesses. Its business consists of providing management services to publicly owned real estate investment trusts, or REITs, and real estate-related operating companies. It also provides management services to real estate securities mutual funds and commercial real estate finance companies. The company's operating segment is RMR LLC and All Other Operations. The RMR Group derives its revenue from providing business and property management services as well as advisory and other services.

The RMR Group Headlines

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