Covivio HotelsFRA:9FM -0.45%80 Gross Margin % is 42.30% as of Dec. 2025, which is 32% below its 10-year median of 62.62. GuruFocus rates FRA:9FM with a GF Score™ of 80/100 and a GF Value™ of €26.38. The stock has 4 warning signs investors should review. Among 680 REITs companies, Covivio Hotels ranks worse than 83.38% 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
Covivio Hotels had a gross margin of 42.30% 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.
Covivio Hotels Gross Margin % Related Terms
Covivio Hotels Gross Margin % Historical Data
* Premium members only.
The historical data trend for Covivio Hotels'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:9FM vs HST, RHP, APLE: Gross Margin % Comparison
For the REIT - Hotel & Motel subindustry, Covivio Hotels'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.
Covivio Hotels Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Covivio Hotels's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Covivio Hotels'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.
Covivio Hotels (FRA:9FM) has a Gross Margin % of 42.30% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Covivio Hotels and its competitors. This is 32% below median its historical median of 62.62. Over the past decade, Covivio Hotels' Gross Margin % has ranged from 51.50 to 98.78. According to the industry distribution chart, Covivio Hotels ranks #567 out of 680 companies in the REITs industry, placing it in the top 83.4%.
Is Covivio Hotels' Gross Margin % too high?
Covivio Hotels' current Gross Margin % of 42.30% is 32% below median its 10-year median of 62.62. Over the past 10 years, this metric has ranged from a low of 51.50 to a high of 98.78. The REITs industry median Gross Margin % is 69.61. Covivio Hotels' value of 42.30% is 39.2% below this industry median. Based on the distribution chart, Covivio Hotels ranks #567 out of 680 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Covivio Hotels has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Covivio Hotels' Gross Margin % compare to HST and RHP?
According to the REITs industry distribution chart, Covivio Hotels ranks #567 out of 680 companies for Gross Margin %. This places Covivio Hotels in the lower half of its industry. The industry median Gross Margin % is 69.61. Covivio Hotels' value of 42.30% is 39.2% below this benchmark. Historically, Covivio Hotels' own Gross Margin % has ranged from 51.50 to 98.78 over the past decade. While the company's 10-year median is 62.62 vs. the industry median of 69.61, Covivio Hotels 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 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. Covivio Hotels's current Gross Margin % of 42.30% is 39.2% 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 Covivio Hotels 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. Covivio Hotels's current Gross Margin % is 42.30%, which is 32% below median its own 10-year median of 62.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Covivio Hotels stock overvalued right now?
Covivio Hotels (FRA:9FM) has a current Gross Margin % of 42.30%. The stock's GF Value™ is €26.38, compared to a current price of €22.20 — trading 15.8% below its estimated fair value. The current Gross Margin % is 42.30%, which is 32% below median its 10-year median of 62.62 and 39.2% below the REITs industry median of 69.61. Covivio Hotels' overall GF Score™ is 80/100 with 4 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 Covivio Hotels (FRA:9FM), the current Gross Margin % is 42.30% 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 Covivio Hotels (FRA:9FM) Overvalued in 2026?
Based on GuruFocus' analysis, Covivio Hotels stock appears to be undervalued.
The current stock price of €22.20 is trading 15.8% below its estimated GF Value™ of €26.38.
Key valuation signals for FRA:9FM:
Gross Margin %: 42.30% (32% below median its 10-year median of 62.62)
GF Value™: €26.38 vs. price of €22.20 (15.8% below fair value)
Industry Position: 39.2% below the REITs median (#567 of 680)
No single metric tells the full story. See the FRA:9FM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Covivio Hotels is engaged in the real estate sector. The company functions as a real estate investment trust, with special emphasis in the holding and management of real estate assets particularly in the hotel sector. Its investment portfolio includes hotels, massage therapy institutes, clinics, garden centers and leisure villages located in Europe.
80GF Score
Get the complete analysis for FRA:9FM
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:9FM has been successfully added to your 
