Shimao Services HoldingsFRA:5GO -3.09%63 Gross Margin % is 16.22% as of Dec. 2025, which is 41% below its 10-year median of 27.52. GuruFocus rates FRA:5GO with a GF Score™ of 63/100 and a GF Value™ of €0.10 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,644 Real Estate companies, Shimao Services Holdings ranks worse than 79.2% 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
Shimao Services Holdings had a gross margin of 16.22% for the quarter that ended in Dec. 2025 => 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.
Shimao Services Holdings Gross Margin % Related Terms
Shimao Services Holdings 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.
FRA:5GO vs CBRE, BEKE, JLL: Gross Margin % Comparison
For the Real Estate Services subindustry, Shimao Services 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.
Shimao Services Holdings Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Shimao Services Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shimao Services 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.
Shimao Services Holdings (FRA:5GO) has a Gross Margin % of 16.22% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Shimao Services Holdings and its competitors. This is 41% below median its historical median of 27.52. Over the past decade, Shimao Services Holdings' Gross Margin % has ranged from 17.76 to 33.67. According to the industry distribution chart, Shimao Services Holdings ranks #1302 out of 1644 companies in the Real Estate industry, placing it in the top 79.2%.
Is Shimao Services Holdings' Gross Margin % too high?
Shimao Services Holdings' current Gross Margin % of 16.22% is 41% below median its 10-year median of 27.52. Over the past 10 years, this metric has ranged from a low of 17.76 to a high of 33.67. The Real Estate industry median Gross Margin % is 36.96. Shimao Services Holdings' value of 16.22% is 56.1% below this industry median. Based on the distribution chart, Shimao Services Holdings ranks #1302 out of 1644 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Shimao Services Holdings has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shimao Services Holdings' Gross Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Shimao Services Holdings ranks #1302 out of 1644 companies for Gross Margin %. This places Shimao Services Holdings in the lower half of its industry. The industry median Gross Margin % is 36.96. Shimao Services Holdings' value of 16.22% is 56.1% below this benchmark. Historically, Shimao Services Holdings' own Gross Margin % has ranged from 17.76 to 33.67 over the past decade. While the company's 10-year median is 27.52 vs. the industry median of 36.96, Shimao Services Holdings has consistently been below 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. Shimao Services Holdings's current Gross Margin % of 16.22% is 56.1% below 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 Shimao Services 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. Shimao Services Holdings's current Gross Margin % is 16.22%, which is 41% below median its own 10-year median of 27.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shimao Services Holdings stock overvalued right now?
Based on GuruFocus' analysis, Shimao Services Holdings (FRA:5GO) is currently considered Possible Value Trap. The stock's GF Value™ is €0.10, compared to a current price of €0.05 — trading 53% below its estimated fair value. The current Gross Margin % is 16.22%, which is 41% below median its 10-year median of 27.52 and 56.1% below the Real Estate industry median of 36.96. Shimao Services Holdings' overall GF Score™ is 63/100 with 5 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 Shimao Services Holdings (FRA:5GO), the current Gross Margin % is 16.22% 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 Shimao Services Holdings (FRA:5GO) Overvalued in 2026?
Based on GuruFocus' analysis, Shimao Services Holdings stock appears to be undervalued.
The current stock price of €0.05 is trading 53% below its estimated GF Value™ of €0.10.
GuruFocus considers Shimao Services Holdings to be Possible Value Trap.
Key valuation signals for FRA:5GO:
Gross Margin %: 16.22% (41% below median its 10-year median of 27.52)
GF Value™: €0.10 vs. price of €0.05 (53% below fair value)
Industry Position: 56.1% below the Real Estate median (#1302 of 1644)
No single metric tells the full story. See the FRA:5GO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shimao Services Holdings Ltd is engaged in the provision of property management services, community value-added services, value-added services to non-property owners, and city services in the People's Republic of China (the PRC). Its segments include Property management and related services, which include property management services, community value-added services, and value-added services to non-property owners; and City services, which include sanitation, cleaning, sewage, and waste treatment business. It derives the majority of revenue from the Property management and related services segment from the PRC.
63GF Score
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