Kuwait Real Estate Co (KUW:KRE) Gross Margin % : 63.71% (As of Mar. 2024)

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What is Kuwait Real Estate Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Kuwait Real Estate Co's Gross Profit for the three months ended in Mar. 2024 was KWD5.24 Mil. Kuwait Real Estate Co's Revenue for the three months ended in Mar. 2024 was KWD8.23 Mil. Therefore, Kuwait Real Estate Co's Gross Margin % for the quarter that ended in Mar. 2024 was 63.71%.

The historical rank and industry rank for Kuwait Real Estate Co's Gross Margin % or its related term are showing as below:

KUW:KRE' s Gross Margin % Range Over the Past 10 Years
Min: 33.45 Med: 65.3 Max: 87.27
Current: 71.26

During the past 13 years, the highest Gross Margin % of Kuwait Real Estate Co was 87.27%. The lowest was 33.45%. And the median was 65.30%.

KUW:KRE's Gross Margin % is ranked better than
82.87% of 1652 companies
in the Real Estate industry
Industry Median: 36.22 vs KUW:KRE: 71.26

Kuwait Real Estate Co had a gross margin of 63.71% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Kuwait Real Estate Co was 2.10% per year.

Kuwait Real Estate Co Gross Margin % Historical Data

The historical data trend for Kuwait Real 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.

* Premium members only.

Kuwait Real Estate Co Gross Margin % Chart

Kuwait Real Estate Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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87.27

84.01

84.14

72.33

75.32

Kuwait Real Estate Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial															78.62	73.12	75.82	73.83	63.71

Competitive Comparison of Kuwait Real Estate Co's Gross Margin %

For the Real Estate Services subindustry, Kuwait Real 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.

Kuwait Real Estate Co's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Kuwait Real Estate Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Kuwait Real Estate Co's Gross Margin % falls into.

Kuwait Real Estate Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Kuwait Real Estate Co's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	21.6	/	28.651
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(28.651 - 7.07)	/	28.651
	=	75.32 %

Kuwait Real Estate Co's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	5.2	/	8.231
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(8.231 - 2.987)	/	8.231
	=	63.71 %

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.

Kuwait Real Estate Co (KUW:KRE) 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

Kuwait Real Estate Co had a gross margin of 63.71% for the quarter that ended in Mar. 2024 => 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.

Kuwait Real Estate Co Gross Margin % Related Terms

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Kuwait Real Estate Co (KUW:KRE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Kuwait Real Estate Co (KUW:KRE) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Darwazat Abdul Razak Street, P.O Box 1257, 8th Floor, Block B, Souk Al Kuwait Building, Safat, Kuwait City, KWT, 13013

Website

https://www.aqarat.com.kw

Kuwait Real Estate Co is a Kuwait-based shareholding company that operates in the real estate sector. It is engaged in dealing with a range of real estate activities, including the sale, purchase, renting out, and leasing of lands and real estate properties, erecting buildings, prepare and implementing studies of private and public real estate projects. It has two operating segments, including real estate and investment. The real estate segment contributes to the majority of the revenue. Its geographical segments are Kuwait; Other Middle Eastern Countries; the United States, Europe, and other countries.