Powerlong Real Estate Holdings (FRA:PW5) 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
Powerlong Real Estate Holdings had a gross margin of -7.69% 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.
Powerlong Real Estate Holdings Gross Margin % Related Terms
Powerlong Real Estate 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.
Powerlong Real Estate Holdings Gross Margin % Chart
Powerlong Real Estate Holdings Gross Margin % Competitor Comparison
For the Real Estate - Development subindustry, Powerlong Real Estate 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.
Powerlong Real Estate Holdings Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Powerlong Real Estate Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Powerlong Real Estate 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.
Powerlong Real Estate Holdings (FRA:PW5) has a Gross Margin % of -7.69% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Powerlong Real Estate Holdings and its competitors. Over the past decade, Powerlong Real Estate Holdings' Gross Margin % has ranged from 5.70 to 38.55. According to the industry distribution chart, Powerlong Real Estate Holdings ranks #1516 out of 1644 companies in the Real Estate industry, placing it in the top 92.2%.
Is Powerlong Real Estate Holdings' Gross Margin % too high?
Powerlong Real Estate Holdings' current Gross Margin % is -7.69%. Over the past 10 years, this metric has ranged from a low of 5.70 to a high of 38.55. Based on the distribution chart, Powerlong Real Estate Holdings ranks #1516 out of 1644 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Powerlong Real Estate Holdings has a GF Score™ of 36/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Powerlong Real Estate Holdings' Gross Margin % compare to competitors?
According to the Real Estate industry distribution chart, Powerlong Real Estate Holdings ranks #1516 out of 1644 companies for Gross Margin %. This places Powerlong Real Estate Holdings in the lower half of its industry. The industry median Gross Margin % is 36.96. Historically, Powerlong Real Estate Holdings' own Gross Margin % has ranged from 5.70 to 38.55 over the past decade. 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. 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 Powerlong Real Estate 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. Powerlong Real Estate Holdings's current Gross Margin % is -7.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Powerlong Real Estate Holdings stock overvalued right now?
Based on GuruFocus' analysis, Powerlong Real Estate Holdings (FRA:PW5) is currently considered Possible Value Trap. The stock's GF Value™ is €0.04, compared to a current price of €0.02 — trading 50% below its estimated fair value. The current Gross Margin % is -7.69%. Powerlong Real Estate Holdings' overall GF Score™ is 36/100 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 Powerlong Real Estate Holdings (FRA:PW5), the current Gross Margin % is -7.69% 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 Powerlong Real Estate Holdings (FRA:PW5) Overvalued in 2026?
Based on GuruFocus' analysis, Powerlong Real Estate Holdings stock appears to be undervalued.
The current stock price of €0.02 is trading 50% below its estimated GF Value™ of €0.04.
GuruFocus considers Powerlong Real Estate Holdings to be Possible Value Trap.
Key valuation signals for FRA:PW5:
Gross Margin %: -7.69%
GF Value™: €0.04 vs. price of €0.02 (50% below fair value)
No single metric tells the full story. See the FRA:PW5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Powerlong Real Estate Holdings Business Description
Powerlong Real Estate Holdings Ltd specializes in commercial realty projects. The company focuses on developing and operating commercial real estate projects. The company operates in four business segments: property development; property investment; commercial operation and residential property management; and other property development related businesses. Majority of the company's revenue is earned from property development segment.
36GF Score
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