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Empire State Realty Trust (FRA:ES9) 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
Empire State Realty Trust had a gross margin of 26.68% for the quarter that ended in Jun. 2026 => 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.
Empire State Realty Trust Gross Margin % Related Terms
Empire State Realty Trust 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:ES9 vs CTO, JBGS, GOOD: Gross Margin % Comparison
For the REIT - Diversified subindustry, Empire State Realty Trust'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.
Empire State Realty Trust Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Empire State Realty Trust's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Empire State Realty Trust'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.
Empire State Realty Trust (FRA:ES9) has a Gross Margin % of 26.68% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Empire State Realty Trust and its competitors. This is 51% below median its historical median of 54.11. Over the past decade, Empire State Realty Trust's Gross Margin % has ranged from 51.47 to 56.83. According to the industry distribution chart, Empire State Realty Trust ranks #549 out of 670 companies in the REITs industry, placing it in the top 81.9%.
Is Empire State Realty Trust's Gross Margin % too high?
Empire State Realty Trust's current Gross Margin % of 26.68% is 51% below median its 10-year median of 54.11. Over the past 10 years, this metric has ranged from a low of 51.47 to a high of 56.83. The REITs industry median Gross Margin % is 69.57. Empire State Realty Trust's value of 26.68% is 61.7% below this industry median. Based on the distribution chart, Empire State Realty Trust ranks #549 out of 670 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Empire State Realty Trust has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does Empire State Realty Trust's Gross Margin % compare to CTO and JBGS?
According to the REITs industry distribution chart, Empire State Realty Trust ranks #549 out of 670 companies for Gross Margin %. This places Empire State Realty Trust in the lower half of its industry. The industry median Gross Margin % is 69.57. Empire State Realty Trust's value of 26.68% is 61.7% below this benchmark. Historically, Empire State Realty Trust's own Gross Margin % has ranged from 51.47 to 56.83 over the past decade. While the company's 10-year median is 54.11 vs. the industry median of 69.57, Empire State Realty Trust 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 69.57, based on 670 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. Empire State Realty Trust's current Gross Margin % of 26.68% is 61.7% 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 Empire State Realty Trust and its competitors. For the REITs industry, the median Gross Margin % is 69.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Empire State Realty Trust's current Gross Margin % is 26.68%, which is 51% below median its own 10-year median of 54.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Empire State Realty Trust stock overvalued right now?
Empire State Realty Trust (FRA:ES9) has a current Gross Margin % of 26.68%. The stock's GF Value™ is €6.35, compared to a current price of €3.18 — trading 49.9% below its estimated fair value. The current Gross Margin % is 26.68%, which is 51% below median its 10-year median of 54.11 and 61.7% below the REITs industry median of 69.57. Empire State Realty Trust's overall GF Score™ is 60/100 with 6 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 Empire State Realty Trust (FRA:ES9), the current Gross Margin % is 26.68% as of Jun. 2026. 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 Empire State Realty Trust (FRA:ES9) Overvalued in 2026?
Based on GuruFocus' analysis, Empire State Realty Trust stock appears to be undervalued.
The current stock price of €3.18 is trading 49.9% below its estimated GF Value™ of €6.35.
Key valuation signals for FRA:ES9:
Gross Margin %: 26.68% (51% below median its 10-year median of 54.11)
GF Value™: €6.35 vs. price of €3.18 (49.9% below fair value)
Industry Position: 61.7% below the REITs median (#549 of 670)
No single metric tells the full story. See the FRA:ES9 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Empire State Realty Trust Inc is a real estate investment trust (REIT) that owns and operates office, retail, and multifamily properties located in New York City, prominently in Manhattan. Its portfolio includes office and retail space as well as residential units. The company's objective is to maximize cash flow and total returns to its shareholders and to increase the value of the properties. Its reportable segments consist of a real estate segment and an Observatory segment. The majority of revenue is derived from the Real Estate segment, which includes all activities related to the ownership, management, operation, acquisition, redevelopment, repositioning and disposition of its traditional real estate assets.
60GF Score
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