Mitsubishi Estate CoFRA:MES +2.80%79 Gross Margin % is 26.11% as of Mar. 2026, which is 0% above its 10-year median of 26.06. GuruFocus rates FRA:MES with a GF Score™ of 79/100 and a GF Value™ of €15.84 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,644 Real Estate companies, Mitsubishi Estate Co ranks worse than 66.3% on this metric.
The historical rank and industry rank for Mitsubishi Estate Co's Gross Margin % or its related term are showing as below:
FRA:MES'
s Gross Margin % Range Over the Past 10 Years
Min: 24.67 Med: 26.06 Max: 28.82
Current: 26.04
During the past 13 years, the highestGross Margin % of Mitsubishi Estate Co was 28.82%. The lowest was 24.67%. And the median was 26.06%.
FRA:MES's Gross Margin % is ranked worse than 66.3% of 1644
companies
in the Real Estate industry
Industry Median: 36.96
vs FRA:MES: 26.04
Mitsubishi Estate Co had a gross margin of 26.11% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Mitsubishi Estate Co was -0.80% per year.
Mitsubishi Estate Co (FRA:MES) 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
Mitsubishi Estate Co had a gross margin of 26.11% for the quarter that ended in Mar. 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.
Mitsubishi Estate Co Gross Margin % Related Terms
Mitsubishi Estate Co Gross Margin % Historical Data
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The historical data trend for Mitsubishi Estate Co'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.
Mitsubishi Estate Co Gross Margin % Competitor Comparison
For the Real Estate - Diversified subindustry, Mitsubishi Estate Co'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.
Mitsubishi Estate Co Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Mitsubishi Estate Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Mitsubishi Estate Co'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.
Mitsubishi Estate Co (FRA:MES) has a Gross Margin % of 26.11% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Mitsubishi Estate Co and its competitors. This is near median its historical median of 26.06. Over the past decade, Mitsubishi Estate Co's Gross Margin % has ranged from 24.67 to 28.82. According to the industry distribution chart, Mitsubishi Estate Co ranks #1090 out of 1644 companies in the Real Estate industry, placing it in the top 66.3%.
Is Mitsubishi Estate Co's Gross Margin % too high?
Mitsubishi Estate Co's current Gross Margin % of 26.11% is near median its 10-year median of 26.06. Over the past 10 years, this metric has ranged from a low of 24.67 to a high of 28.82. The Real Estate industry median Gross Margin % is 36.96. Mitsubishi Estate Co's value of 26.11% is 29.4% below this industry median. Based on the distribution chart, Mitsubishi Estate Co ranks #1090 out of 1644 companies in the Real Estate industry, which is below the industry midpoint. Overall, Mitsubishi Estate Co has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mitsubishi Estate Co's Gross Margin % compare to competitors?
According to the Real Estate industry distribution chart, Mitsubishi Estate Co ranks #1090 out of 1644 companies for Gross Margin %. This places Mitsubishi Estate Co in the lower half of its industry. The industry median Gross Margin % is 36.96. Mitsubishi Estate Co's value of 26.11% is 29.4% below this benchmark. Historically, Mitsubishi Estate Co's own Gross Margin % has ranged from 24.67 to 28.82 over the past decade. While the company's 10-year median is 26.06 vs. the industry median of 36.96, Mitsubishi Estate Co 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. Mitsubishi Estate Co's current Gross Margin % of 26.11% is 29.4% 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 Mitsubishi Estate Co 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. Mitsubishi Estate Co's current Gross Margin % is 26.11%, which is near median its own 10-year median of 26.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mitsubishi Estate Co stock overvalued right now?
Based on GuruFocus' analysis, Mitsubishi Estate Co (FRA:MES) is currently considered Significantly Overvalued. The stock's GF Value™ is €15.84, compared to a current price of €22.00 — trading 38.9% above its estimated fair value. The current Gross Margin % is 26.11%, which is near median its 10-year median of 26.06 and 29.4% below the Real Estate industry median of 36.96. Mitsubishi Estate Co's overall GF Score™ is 79/100 with 3 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 Mitsubishi Estate Co (FRA:MES), the current Gross Margin % is 26.11% as of Mar. 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 Mitsubishi Estate Co (FRA:MES) Overvalued in 2026?
Based on GuruFocus' analysis, Mitsubishi Estate Co stock appears to be overvalued.
The current stock price of €22.00 is trading 38.9% above its estimated GF Value™ of €15.84.
GuruFocus considers Mitsubishi Estate Co to be Significantly Overvalued.
Key valuation signals for FRA:MES:
Gross Margin %: 26.11% (near median its 10-year median of 26.06)
GF Value™: €15.84 vs. price of €22.00 (38.9% above fair value)
Industry Position: 29.4% below the Real Estate median (#1090 of 1644)
No single metric tells the full story. See the FRA:MES stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mitsubishi Estate is one of the three big Japanese real estate companies. Around two thirds of its operating profit comes from leasing office space in Japan, where half of its portfolio is concentrated in the prime Marunouchi/Otemachi district between Tokyo station and the Imperial Palace. Mitsubishi Estate's predecessor originally bought this land from the government in 1890, and the company sees itself as steward of the showcase area's long-term development, rarely if ever selling any properties there.
79GF Score
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