Franklin Street PropertiesFSP -1.11%44 Gross Margin % is 44.58% as of Mar. 2026, which is 15% below its 10-year median of 52.20. GuruFocus rates FSP with a GF Score™ of 44/100 and a GF Value™ of $1.46 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 680 REITs companies, Franklin Street Properties ranks worse than 88.24% on this metric.
Franklin Street Properties (AMEX:FSP) 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
Franklin Street Properties had a gross margin of 44.58% for the quarter that ended in Mar. 2026 => 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.
Franklin Street Properties Gross Margin % Related Terms
Franklin Street Properties 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.
For the REIT - Office subindustry, Franklin Street Properties'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.
Franklin Street Properties Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Franklin Street Properties's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Franklin Street Properties'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.
Franklin Street Properties (FSP) has a Gross Margin % of 44.58% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Franklin Street Properties and its competitors. This is 15% below median its historical median of 52.20. Over the past decade, Franklin Street Properties' Gross Margin % has ranged from 43.59 to 57.79. According to the industry distribution chart, Franklin Street Properties ranks #600 out of 680 companies in the REITs industry, placing it in the top 88.2%.
Is Franklin Street Properties' Gross Margin % too high?
Franklin Street Properties' current Gross Margin % of 44.58% is 15% below median its 10-year median of 52.20. Over the past 10 years, this metric has ranged from a low of 43.59 to a high of 57.79. The REITs industry median Gross Margin % is 69.61. Franklin Street Properties' value of 44.58% is 36% below this industry median. Based on the distribution chart, Franklin Street Properties ranks #600 out of 680 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Franklin Street Properties has a GF Score™ of 44/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Franklin Street Properties' Gross Margin % compare to CMCT and ONL?
According to the REITs industry distribution chart, Franklin Street Properties ranks #600 out of 680 companies for Gross Margin %. This places Franklin Street Properties in the lower half of its industry. The industry median Gross Margin % is 69.61. Franklin Street Properties' value of 44.58% is 36% below this benchmark. Historically, Franklin Street Properties' own Gross Margin % has ranged from 43.59 to 57.79 over the past decade. While the company's 10-year median is 52.20 vs. the industry median of 69.61, Franklin Street Properties 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. Franklin Street Properties's current Gross Margin % of 44.58% is 36% 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 Franklin Street Properties 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. Franklin Street Properties's current Gross Margin % is 44.58%, which is 15% below median its own 10-year median of 52.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Franklin Street Properties stock overvalued right now?
Based on GuruFocus' analysis, Franklin Street Properties (FSP) is currently considered Possible Value Trap. The stock's GF Value™ is $1.46, compared to a current price of $0.54 — trading 63.3% below its estimated fair value. The current Gross Margin % is 44.58%, which is 15% below median its 10-year median of 52.20 and 36% below the REITs industry median of 69.61. Franklin Street Properties' overall GF Score™ is 44/100 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 Franklin Street Properties (FSP), the current Gross Margin % is 44.58% 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 Franklin Street Properties (FSP) Overvalued in 2026?
Based on GuruFocus' analysis, Franklin Street Properties stock appears to be undervalued.
The current stock price of $0.54 is trading 63.3% below its estimated GF Value™ of $1.46.
GuruFocus considers Franklin Street Properties to be Possible Value Trap.
Key valuation signals for FSP:
Gross Margin %: 44.58% (15% below median its 10-year median of 52.20)
GF Value™: $1.46 vs. price of $0.54 (63.3% below fair value)
Industry Position: 36% below the REITs median (#600 of 680)
No single metric tells the full story. See the FSP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Franklin Street Properties Corp is a real estate investment trust. The company is focused on commercial real estate investments in office markets and currently operate in only one segment: real estate operations. The principal revenue sources for its real estate operations include rental income from real estate leasing, property dispositions and fee income from asset/property management and development. The company provides asset management, property management, property accounting, investor and/or development services to its portfolio and Sponsored REIT through the company's subsidiaries.
44GF Score
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