China Merchants Commercial REIT (FRA:5C3) 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
China Merchants Commercial REIT had a gross margin of 71.64% 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.
China Merchants Commercial REIT Gross Margin % Related Terms
China Merchants Commercial REIT 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.
China Merchants Commercial REIT Gross Margin % Chart
FRA:5C3 vs BXP, ARE, VNO: Gross Margin % Comparison
For the REIT - Office subindustry, China Merchants Commercial REIT'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.
China Merchants Commercial REIT Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, China Merchants Commercial REIT's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Merchants Commercial REIT'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.
China Merchants Commercial REIT (FRA:5C3) has a Gross Margin % of 71.64% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Merchants Commercial REIT and its competitors. This is near median its historical median of 72.62. Over the past decade, China Merchants Commercial REIT's Gross Margin % has ranged from 61.50 to 74.01. According to the industry distribution chart, China Merchants Commercial REIT ranks #320 out of 680 companies in the REITs industry, placing it in the top 47.1%.
Is China Merchants Commercial REIT's Gross Margin % too high?
China Merchants Commercial REIT's current Gross Margin % of 71.64% is near median its 10-year median of 72.62. Over the past 10 years, this metric has ranged from a low of 61.50 to a high of 74.01. The REITs industry median Gross Margin % is 69.61. China Merchants Commercial REIT's value of 71.64% is 2.9% above this industry median. Based on the distribution chart, China Merchants Commercial REIT ranks #320 out of 680 companies in the REITs industry, which is above the industry midpoint. Overall, China Merchants Commercial REIT has a GF Score™ of 70/100, reflecting its overall financial health beyond just this single metric.
How does China Merchants Commercial REIT's Gross Margin % compare to BXP and ARE?
According to the REITs industry distribution chart, China Merchants Commercial REIT ranks #320 out of 680 companies for Gross Margin %. This puts China Merchants Commercial REIT in the upper half of its industry. The industry median Gross Margin % is 69.61. China Merchants Commercial REIT's value of 71.64% is 2.9% above this benchmark. Historically, China Merchants Commercial REIT's own Gross Margin % has ranged from 61.50 to 74.01 over the past decade. While the company's 10-year median is 72.62 vs. the industry median of 69.61, China Merchants Commercial REIT 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 REITs company?
The median Gross Margin % among REITs companies is 69.61, 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. China Merchants Commercial REIT's current Gross Margin % of 71.64% is 2.9% 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 China Merchants Commercial REIT and its competitors. For the REITs industry, the median Gross Margin % is 69.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Merchants Commercial REIT's current Gross Margin % is 71.64%, which is near median its own 10-year median of 72.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Merchants Commercial REIT stock overvalued right now?
China Merchants Commercial REIT (FRA:5C3) has a current Gross Margin % of 71.64%. The stock's GF Value™ is €0.11, compared to a current price of €0.10 — trading 8.2% below its estimated fair value. The current Gross Margin % is 71.64%, which is near median its 10-year median of 72.62 and 2.9% above the REITs industry median of 69.61. China Merchants Commercial REIT's overall GF Score™ is 70/100 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 China Merchants Commercial REIT (FRA:5C3), the current Gross Margin % is 71.64% 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 China Merchants Commercial REIT (FRA:5C3) Overvalued in 2026?
Based on GuruFocus' analysis, China Merchants Commercial REIT stock appears to be undervalued.
The current stock price of €0.10 is trading 8.2% below its estimated GF Value™ of €0.11.
Key valuation signals for FRA:5C3:
Gross Margin %: 71.64% (near median its 10-year median of 72.62)
GF Value™: €0.11 vs. price of €0.10 (8.2% below fair value)
Industry Position: 2.9% above the REITs median (#320 of 680)
No single metric tells the full story. See the FRA:5C3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Merchants Commercial REIT Business Description
China Merchants Commercial REIT and its subsidiaries are engaged in the property investment. The operating business segments of the company are office buildings and shopping center. Its properties include New Times Plaza, Cyberport Building, Technology Building, Garden City Shopping Centre ,Onward Science And Trade Center and Technology Building 2 among others.
70GF Score
Get the complete analysis for FRA:5C3
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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