Wharf Real Estate Investment Co (FRA:4WF) 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
Wharf Real Estate Investment Co had a gross margin of 77.70% for the quarter that ended in Dec. 2025 => 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.
Wharf Real Estate Investment Co Gross Margin % Related Terms
Wharf Real Estate Investment Co 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.
Wharf Real Estate Investment Co Gross Margin % Chart
FRA:4WF vs CBRE, BEKE, JLL: Gross Margin % Comparison
For the Real Estate Services subindustry, Wharf Real Estate Investment Co'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.
Wharf Real Estate Investment Co Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Wharf Real Estate Investment Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Wharf Real Estate Investment Co'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.
Wharf Real Estate Investment Co (FRA:4WF) has a Gross Margin % of 77.70% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Wharf Real Estate Investment Co and its competitors. This is near median its historical median of 79.29. Over the past decade, Wharf Real Estate Investment Co's Gross Margin % has ranged from 66.73 to 84.85. According to the industry distribution chart, Wharf Real Estate Investment Co ranks #214 out of 1646 companies in the Real Estate industry, placing it in the top 13%.
Is Wharf Real Estate Investment Co's Gross Margin % too high?
Wharf Real Estate Investment Co's current Gross Margin % of 77.70% is near median its 10-year median of 79.29. Over the past 10 years, this metric has ranged from a low of 66.73 to a high of 84.85. The Real Estate industry median Gross Margin % is 36.96. Wharf Real Estate Investment Co's value of 77.70% is 110.2% above this industry median. Based on the distribution chart, Wharf Real Estate Investment Co ranks #214 out of 1646 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, Wharf Real Estate Investment Co has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Wharf Real Estate Investment Co's Gross Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Wharf Real Estate Investment Co ranks #214 out of 1646 companies for Gross Margin %. This places Wharf Real Estate Investment Co in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.96. Wharf Real Estate Investment Co's value of 77.70% is 110.2% above this benchmark. Historically, Wharf Real Estate Investment Co's own Gross Margin % has ranged from 66.73 to 84.85 over the past decade. While the company's 10-year median is 79.29 vs. the industry median of 36.96, Wharf Real Estate Investment Co 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 1,646 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. Wharf Real Estate Investment Co's current Gross Margin % of 77.70% is 110.2% 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 Wharf Real Estate Investment Co 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. Wharf Real Estate Investment Co's current Gross Margin % is 77.70%, which is near median its own 10-year median of 79.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wharf Real Estate Investment Co stock overvalued right now?
Based on GuruFocus' analysis, Wharf Real Estate Investment Co (FRA:4WF) is currently considered Fairly Valued. The stock's GF Value™ is €2.53, compared to a current price of €2.34 — trading 7.5% below its estimated fair value. The current Gross Margin % is 77.70%, which is near median its 10-year median of 79.29 and 110.2% above the Real Estate industry median of 36.96. Wharf Real Estate Investment Co's overall GF Score™ is 75/100 with 3 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 Wharf Real Estate Investment Co (FRA:4WF), the current Gross Margin % is 77.70% 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.
Is Wharf Real Estate Investment Co (FRA:4WF) Overvalued in 2026?
Based on GuruFocus' analysis, Wharf Real Estate Investment Co stock appears to be undervalued.
The current stock price of €2.34 is trading 7.5% below its estimated GF Value™ of €2.53.
GuruFocus considers Wharf Real Estate Investment Co to be Fairly Valued.
Key valuation signals for FRA:4WF:
Gross Margin %: 77.70% (near median its 10-year median of 79.29)
GF Value™: €2.53 vs. price of €2.34 (7.5% below fair value)
Industry Position: 110.2% above the Real Estate median (#214 of 1646)
No single metric tells the full story. See the FRA:4WF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wharf Real Estate Investment Co Business Description
Wharf spun off Wharf Real Estate Investment Co. in November 2017. It is a leading property investor with a focus on prime retail assets in Hong Kong. Rental income from flagship assets Harbour City and Times Square accounts for over 85% of revenue. The balance comes from Plaza Hollywood, The Murray, and Marco Polo hotels, and two offices in the central business district. The group also holds two malls in Singapore and a mixed development in Suzhou. Wharf was originally a shipping company but transformed into a property developer and investor in the 1960s by redeveloping its unused industrial assets, many located in city center and waterfront locations. The Harbour City site had been wharfs, and the Times Square site was a tram depot in the 1970s. Wheelock holds a 49% stake in the group.
75GF Score
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