RE/MAX HoldingsFRA:2RM -4.99%66 Gross Margin % is 75.98% as of Mar. 2026, which is 2% above its 10-year median of 74.44. GuruFocus rates FRA:2RM with a GF Score™ of 66/100 and a GF Value™ of €6.54 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,644 Real Estate companies, RE/MAX Holdings ranks better than 85.46% 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
RE/MAX Holdings had a gross margin of 75.98% 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.
RE/MAX Holdings Gross Margin % Related Terms
RE/MAX Holdings Gross Margin % Historical Data
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The historical data trend for RE/MAX Holdings'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.
FRA:2RM vs NEN, DOUG, ARL: Gross Margin % Comparison
For the Real Estate Services subindustry, RE/MAX Holdings'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.
RE/MAX Holdings Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, RE/MAX Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where RE/MAX Holdings'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.
RE/MAX Holdings (FRA:2RM) has a Gross Margin % of 75.98% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on RE/MAX Holdings and its competitors. This is near median its historical median of 74.44. Over the past decade, RE/MAX Holdings' Gross Margin % has ranged from 74.25 to 75.79. According to the industry distribution chart, RE/MAX Holdings ranks #239 out of 1644 companies in the Real Estate industry, placing it in the top 14.5%.
Is RE/MAX Holdings' Gross Margin % too high?
RE/MAX Holdings' current Gross Margin % of 75.98% is near median its 10-year median of 74.44. Over the past 10 years, this metric has ranged from a low of 74.25 to a high of 75.79. The Real Estate industry median Gross Margin % is 36.96. RE/MAX Holdings' value of 75.98% is 105.6% above this industry median. Based on the distribution chart, RE/MAX Holdings ranks #239 out of 1644 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, RE/MAX Holdings has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does RE/MAX Holdings' Gross Margin % compare to NEN and DOUG?
According to the Real Estate industry distribution chart, RE/MAX Holdings ranks #239 out of 1644 companies for Gross Margin %. This places RE/MAX Holdings in the top 15% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.96. RE/MAX Holdings' value of 75.98% is 105.6% above this benchmark. Historically, RE/MAX Holdings' own Gross Margin % has ranged from 74.25 to 75.79 over the past decade. While the company's 10-year median is 74.44 vs. the industry median of 36.96, RE/MAX Holdings 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 Real Estate company?
The median Gross Margin % among Real Estate companies is 36.96, based on 1,644 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. RE/MAX Holdings's current Gross Margin % of 75.98% is 105.6% 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 RE/MAX Holdings and its competitors. For the Real Estate industry, the median Gross Margin % is 36.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RE/MAX Holdings's current Gross Margin % is 75.98%, which is near median its own 10-year median of 74.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RE/MAX Holdings stock overvalued right now?
Based on GuruFocus' analysis, RE/MAX Holdings (FRA:2RM) is currently considered Modestly Overvalued. The stock's GF Value™ is €6.54, compared to a current price of €8.19 — trading 25.2% above its estimated fair value. The current Gross Margin % is 75.98%, which is near median its 10-year median of 74.44 and 105.6% above the Real Estate industry median of 36.96. RE/MAX Holdings' overall GF Score™ is 66/100 with 8 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 RE/MAX Holdings (FRA:2RM), the current Gross Margin % is 75.98% 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 RE/MAX Holdings (FRA:2RM) Overvalued in 2026?
Based on GuruFocus' analysis, RE/MAX Holdings stock appears to be overvalued.
The current stock price of €8.19 is trading 25.2% above its estimated GF Value™ of €6.54.
GuruFocus considers RE/MAX Holdings to be Modestly Overvalued.
Key valuation signals for FRA:2RM:
Gross Margin %: 75.98% (near median its 10-year median of 74.44)
GF Value™: €6.54 vs. price of €8.19 (25.2% above fair value)
Industry Position: 105.6% above the Real Estate median (#239 of 1644)
No single metric tells the full story. See the FRA:2RM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RE/MAX Holdings Inc operates as a franchisor of real estate brokerage services. It recruits and retains agents and sells franchises. The company's operating segments include Real Estate, Mortgage, Marketing Funds, and Others. It generates maximum revenue from the Real Estate segment.
66GF Score
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