What is Grounds Real Estate Development AG Gross Margin %?
Grounds Real Estate Development AGFRA:AMM -0.42%39 Gross Margin % is 24.69% as of Jun. 2025, which is 40% above its 10-year median of 17.64. GuruFocus rates FRA:AMM with a GF Score™ of 39/100 and a GF Value™ of €0.14 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,644 Real Estate companies, Grounds Real Estate Development AG ranks worse than 97.99% on this metric.
Grounds Real Estate Development AG (FRA:AMM) 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
Grounds Real Estate Development AG had a gross margin of 24.69% for the quarter that ended in Jun. 2025 => Competition eroding margins
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.
Grounds Real Estate Development AG Gross Margin % Related Terms
Grounds Real Estate Development AG 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.
Grounds Real Estate Development AG Gross Margin % Chart
FRA:AMM vs CBRE, BEKE, CSGP: Gross Margin % Comparison
For the Real Estate Services subindustry, Grounds Real Estate Development AG'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.
Grounds Real Estate Development AG Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Grounds Real Estate Development AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Grounds Real Estate Development AG'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.
Grounds Real Estate Development AG (FRA:AMM) has a Gross Margin % of 24.69% as of Jun. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Grounds Real Estate Development AG and its competitors. This is 40% above median its historical median of 17.64. According to the industry distribution chart, Grounds Real Estate Development AG ranks #1611 out of 1644 companies in the Real Estate industry, placing it in the top 98%.
Is Grounds Real Estate Development AG's Gross Margin % too high?
Grounds Real Estate Development AG's current Gross Margin % of 24.69% is 40% above median its 10-year median of 17.64. The Real Estate industry median Gross Margin % is 36.96. Grounds Real Estate Development AG's value of 24.69% is 33.2% below this industry median. Based on the distribution chart, Grounds Real Estate Development AG ranks #1611 out of 1644 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Grounds Real Estate Development AG has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Grounds Real Estate Development AG's Gross Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Grounds Real Estate Development AG ranks #1611 out of 1644 companies for Gross Margin %. This places Grounds Real Estate Development AG in the lower half of its industry. The industry median Gross Margin % is 36.96. Grounds Real Estate Development AG's value of 24.69% is 33.2% below this benchmark. While the company's 10-year median is 17.64 vs. the industry median of 36.96, Grounds Real Estate Development AG 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. Grounds Real Estate Development AG's current Gross Margin % of 24.69% is 33.2% 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 Grounds Real Estate Development AG 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. Grounds Real Estate Development AG's current Gross Margin % is 24.69%, which is 40% above median its own 10-year median of 17.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grounds Real Estate Development AG stock overvalued right now?
Based on GuruFocus' analysis, Grounds Real Estate Development AG (FRA:AMM) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.14, compared to a current price of €0.48 — trading 241.4% above its estimated fair value. The current Gross Margin % is 24.69%, which is 40% above median its 10-year median of 17.64 and 33.2% below the Real Estate industry median of 36.96. Grounds Real Estate Development AG's overall GF Score™ is 39/100 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 Grounds Real Estate Development AG (FRA:AMM), the current Gross Margin % is 24.69% as of Jun. 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 Grounds Real Estate Development AG (FRA:AMM) Overvalued in 2026?
Based on GuruFocus' analysis, Grounds Real Estate Development AG stock appears to be overvalued.
The current stock price of €0.48 is trading 241.4% above its estimated GF Value™ of €0.14.
GuruFocus considers Grounds Real Estate Development AG to be Significantly Overvalued.
Key valuation signals for FRA:AMM:
Gross Margin %: 24.69% (40% above median its 10-year median of 17.64)
GF Value™: €0.14 vs. price of €0.48 (241.4% above fair value)
Industry Position: 33.2% below the Real Estate median (#1611 of 1644)
No single metric tells the full story. See the FRA:AMM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Grounds Real Estate Development AG Business Description
Grounds Real Estate Development AG carries out housing projects in German metropolitan regions. Its business activities cover three core areas, including the company's plan to establish its property portfolio for long-term rental income, which is referred to as the portfolio management business. the company also works to develop the existing properties and sell them as part-ownership, known as the privatization business. Additionally, planning to construct new housing and sell it to institutional investors, capital investors, and owner-occupiers. This is referred to as the project development business. The group's primary sources of income are the construction work on project developments, privatization income, and rental income from existing properties.
39GF Score
Get the complete analysis for FRA:AMM
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:AMM has been successfully added to your 
