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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Far East Hotels & EntertainmentHKSE:00037 36 Gross Margin % is 39.20% as of Mar. 2026, which is 42% above its 10-year median of 27.52. GuruFocus rates HKSE:00037 with a GF Score™ of 36/100 and a GF Value™ of HK$0.38 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,644 Real Estate companies, Far East Hotels & Entertainment ranks worse than 54.44% on this metric.
Far East Hotels & Entertainment (HKSE:00037) 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
Far East Hotels & Entertainment had a gross margin of 39.20% 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.
Far East Hotels & Entertainment Gross Margin % Related Terms
Far East Hotels & Entertainment 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.
Far East Hotels & Entertainment Gross Margin % Chart
HKSE:00037 vs CBRE, BEKE, JLL: Gross Margin % Comparison
For the Real Estate Services subindustry, Far East Hotels & Entertainment'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.
Far East Hotels & Entertainment Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Far East Hotels & Entertainment's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Far East Hotels & Entertainment'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.
Far East Hotels & Entertainment (HKSE:00037) has a Gross Margin % of 39.20% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Far East Hotels & Entertainment and its competitors. This is 42% above median its historical median of 27.52. Over the past decade, Far East Hotels & Entertainment's Gross Margin % has ranged from 15.90 to 53.43. According to the industry distribution chart, Far East Hotels & Entertainment ranks #895 out of 1644 companies in the Real Estate industry, placing it in the top 54.4%.
Is Far East Hotels & Entertainment's Gross Margin % too high?
Far East Hotels & Entertainment's current Gross Margin % of 39.20% is 42% above median its 10-year median of 27.52. Over the past 10 years, this metric has ranged from a low of 15.90 to a high of 53.43. The Real Estate industry median Gross Margin % is 36.29. Far East Hotels & Entertainment's value of 39.20% is 8% above this industry median. Based on the distribution chart, Far East Hotels & Entertainment ranks #895 out of 1644 companies in the Real Estate industry, which is below the industry midpoint. Overall, Far East Hotels & Entertainment has a GF Score™ of 36/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Far East Hotels & Entertainment's Gross Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Far East Hotels & Entertainment ranks #895 out of 1644 companies for Gross Margin %. This places Far East Hotels & Entertainment in the lower half of its industry. The industry median Gross Margin % is 36.29. Far East Hotels & Entertainment's value of 39.20% is 8% above this benchmark. Historically, Far East Hotels & Entertainment's own Gross Margin % has ranged from 15.90 to 53.43 over the past decade. While the company's 10-year median is 27.52 vs. the industry median of 36.29, Far East Hotels & Entertainment has consistently been above 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 36.29, 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. Far East Hotels & Entertainment's current Gross Margin % of 39.20% is 8% above 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 Far East Hotels & Entertainment and its competitors. For the Real Estate industry, the median Gross Margin % is 36.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Far East Hotels & Entertainment's current Gross Margin % is 39.20%, which is 42% above median its own 10-year median of 27.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Far East Hotels & Entertainment stock overvalued right now?
Based on GuruFocus' analysis, Far East Hotels & Entertainment (HKSE:00037) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.38, compared to a current price of HK$0.50 — trading 30.3% above its estimated fair value. The current Gross Margin % is 39.20%, which is 42% above median its 10-year median of 27.52 and 8% above the Real Estate industry median of 36.29. Far East Hotels & Entertainment's overall GF Score™ is 36/100 with 2 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 Far East Hotels & Entertainment (HKSE:00037), the current Gross Margin % is 39.20% 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 Far East Hotels & Entertainment (HKSE:00037) Overvalued in 2026?
Based on GuruFocus' analysis, Far East Hotels & Entertainment stock appears to be overvalued.
The current stock price of HK$0.50 is trading 30.3% above its estimated GF Value™ of HK$0.38.
GuruFocus considers Far East Hotels & Entertainment to be Modestly Overvalued.
Key valuation signals for HKSE:00037:
Gross Margin %: 39.20% (42% above median its 10-year median of 27.52)
GF Value™: HK$0.38 vs. price of HK$0.50 (30.3% above fair value)
Industry Position: 8% above the Real Estate median (#895 of 1644)
No single metric tells the full story. See the HKSE:00037 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Far East Hotels & Entertainment Ltd is a Hong Kong-based investment holding company. Through its subsidiaries, the company operates in the following reportable segments: Hotel operation in Hong Kong, Property investment in Hong Kong, Property investment overseas, and Securities investment and trading. The majority of the group's revenue is generated from the Hotel operation in Hong Kong segment, which operates the Cheung Chau Warwick Hotel in Hong Kong. Geographically, it generates maximum revenue from Hong Kong, and the rest from overseas markets.
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