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Tern Properties CoHKSE:00277 69 Gross Margin % is 93.08% as of Mar. 2026, which is 4% below its 10-year median of 96.55. GuruFocus rates HKSE:00277 with a GF Score™ of 69/100 and a GF Value™ of HK$1.72 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,643 Real Estate companies, Tern Properties Co ranks better than 94.83% on this metric.
Tern Properties Co (HKSE:00277) 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
Tern Properties Co had a gross margin of 93.08% 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.
Tern Properties Co Gross Margin % Related Terms
Tern Properties Co Gross Margin % Historical Data
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The historical data trend for Tern Properties 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.
HKSE:00277 vs CBRE, BEKE, JLL: Gross Margin % Comparison
For the Real Estate Services subindustry, Tern Properties 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.
Tern Properties Co Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Tern Properties Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tern Properties 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.
Tern Properties Co (HKSE:00277) has a Gross Margin % of 93.08% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tern Properties Co and its competitors. This is near median its historical median of 96.55. Over the past decade, Tern Properties Co's Gross Margin % has ranged from 89.62 to 98.18. According to the industry distribution chart, Tern Properties Co ranks #85 out of 1643 companies in the Real Estate industry, placing it in the top 5.2%.
Is Tern Properties Co's Gross Margin % too high?
Tern Properties Co's current Gross Margin % of 93.08% is near median its 10-year median of 96.55. Over the past 10 years, this metric has ranged from a low of 89.62 to a high of 98.18. The Real Estate industry median Gross Margin % is 36.31. Tern Properties Co's value of 93.08% is 156.3% above this industry median. Based on the distribution chart, Tern Properties Co ranks #85 out of 1643 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, Tern Properties Co has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tern Properties Co's Gross Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Tern Properties Co ranks #85 out of 1643 companies for Gross Margin %. This places Tern Properties Co in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.31. Tern Properties Co's value of 93.08% is 156.3% above this benchmark. Historically, Tern Properties Co's own Gross Margin % has ranged from 89.62 to 98.18 over the past decade. While the company's 10-year median is 96.55 vs. the industry median of 36.31, Tern Properties Co 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 36.31, based on 1,643 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. Tern Properties Co's current Gross Margin % of 93.08% is 156.3% 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 Tern Properties Co and its competitors. For the Real Estate industry, the median Gross Margin % is 36.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tern Properties Co's current Gross Margin % is 93.08%, which is near median its own 10-year median of 96.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tern Properties Co stock overvalued right now?
Based on GuruFocus' analysis, Tern Properties Co (HKSE:00277) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$1.72, compared to a current price of HK$1.14 — trading 34% below its estimated fair value. The current Gross Margin % is 93.08%, which is near median its 10-year median of 96.55 and 156.3% above the Real Estate industry median of 36.31. Tern Properties Co's overall GF Score™ is 69/100 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 Tern Properties Co (HKSE:00277), the current Gross Margin % is 93.08% 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 Tern Properties Co (HKSE:00277) Overvalued in 2026?
Based on GuruFocus' analysis, Tern Properties Co stock appears to be undervalued.
The current stock price of HK$1.14 is trading 34% below its estimated GF Value™ of HK$1.72.
GuruFocus considers Tern Properties Co to be Significantly Undervalued.
Key valuation signals for HKSE:00277:
Gross Margin %: 93.08% (near median its 10-year median of 96.55)
GF Value™: HK$1.72 vs. price of HK$1.14 (34% below fair value)
Industry Position: 156.3% above the Real Estate median (#85 of 1643)
No single metric tells the full story. See the HKSE:00277 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tern Properties Co Ltd is a Hong Kong-based company involved in the Property investment business where the company buys, sells, and leases properties as well as in the Treasury investment business where the company is engaged in investing in debt and equity securities. Geographically, the group principally operates in Hong Kong. The company generates key income from the Property investment business.
69GF Score
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