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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.
Palace CapitalLSE:PCA +2.19%60 Gross Margin % is 21.35% as of Mar. 2026, which is 73% below its 10-year median of 78.36. GuruFocus rates LSE:PCA with a GF Score™ of 60/100 and a GF Value™ of £1.46 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 678 REITs companies, Palace Capital ranks worse than 94.54% on this metric.
Palace Capital PLC gross margin has been in long-term decline. The average rate of decline per year is -12.6%.
The historical rank and industry rank for Palace Capital's Gross Margin % or its related term are showing as below:
LSE:PCA'
s Gross Margin % Range Over the Past 10 Years
Min: 27.18 Med: 78.36 Max: 89.1
Current: 27.18
During the past 13 years, the highestGross Margin % of Palace Capital was 89.10%. The lowest was 27.18%. And the median was 78.36%.
LSE:PCA's Gross Margin % is ranked worse than 94.54% of 678
companies
in the REITs industry
Industry Median: 69.925
vs LSE:PCA: 27.18
Palace Capital had a gross margin of 21.35% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Palace Capital was -12.60% per year.
Palace Capital (LSE:PCA) 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
Palace Capital had a gross margin of 21.35% 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.
Palace Capital Gross Margin % Related Terms
Palace Capital Gross Margin % Historical Data
* Premium members only.
The historical data trend for Palace Capital'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.
LSE:PCA vs VICI, WPC, BNL: Gross Margin % Comparison
For the REIT - Diversified subindustry, Palace Capital'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.
Palace Capital Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Palace Capital's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Palace Capital'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.
Palace Capital (LSE:PCA) has a Gross Margin % of 21.35% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Palace Capital and its competitors. This is 73% below median its historical median of 78.36. Over the past decade, Palace Capital's Gross Margin % has ranged from 27.18 to 89.10. According to the industry distribution chart, Palace Capital ranks #641 out of 678 companies in the REITs industry, placing it in the top 94.5%.
Is Palace Capital's Gross Margin % too high?
Palace Capital's current Gross Margin % of 21.35% is 73% below median its 10-year median of 78.36. Over the past 10 years, this metric has ranged from a low of 27.18 to a high of 89.10. The REITs industry median Gross Margin % is 69.93. Palace Capital's value of 21.35% is 69.5% below this industry median. Based on the distribution chart, Palace Capital ranks #641 out of 678 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Palace Capital has a GF Score™ of 60/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Palace Capital's Gross Margin % compare to VICI and WPC?
According to the REITs industry distribution chart, Palace Capital ranks #641 out of 678 companies for Gross Margin %. This places Palace Capital in the lower half of its industry. The industry median Gross Margin % is 69.93. Palace Capital's value of 21.35% is 69.5% below this benchmark. Historically, Palace Capital's own Gross Margin % has ranged from 27.18 to 89.10 over the past decade. While the company's 10-year median is 78.36 vs. the industry median of 69.93, Palace Capital 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 69.93, based on 678 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. Palace Capital's current Gross Margin % of 21.35% is 69.5% 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 Palace Capital and its competitors. For the REITs industry, the median Gross Margin % is 69.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palace Capital's current Gross Margin % is 21.35%, which is 73% below median its own 10-year median of 78.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palace Capital stock overvalued right now?
Based on GuruFocus' analysis, Palace Capital (LSE:PCA) is currently considered Modestly Overvalued. The stock's GF Value™ is £1.46, compared to a current price of £1.87 — trading 28.1% above its estimated fair value. The current Gross Margin % is 21.35%, which is 73% below median its 10-year median of 78.36 and 69.5% below the REITs industry median of 69.93. Palace Capital's overall GF Score™ is 60/100 with 6 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 Palace Capital (LSE:PCA), the current Gross Margin % is 21.35% 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 Palace Capital (LSE:PCA) Overvalued in 2026?
Based on GuruFocus' analysis, Palace Capital stock appears to be overvalued.
The current stock price of £1.87 is trading 28.1% above its estimated GF Value™ of £1.46.
GuruFocus considers Palace Capital to be Modestly Overvalued.
Key valuation signals for LSE:PCA:
Gross Margin %: 21.35% (73% below median its 10-year median of 78.36)
GF Value™: £1.46 vs. price of £1.87 (28.1% above fair value)
Industry Position: 69.5% below the REITs median (#641 of 678)
No single metric tells the full story. See the LSE:PCA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Palace Capital PLC is a property investment company. The Company's principal activity is to invest in commercial real estate in the UK. Its portfolio includes investment properties throughout England, predominantly regional investments outside London, and a diverse portfolio of commercial buildings. The company generates revenue in the form of property income and represents the value of accrued charges under operating leases for rental of the Group's investment properties. Its only reportable segment is an Investment property. The company's properties include Hudson House, York; Fraser House, Staines, Milton Keynes, and Midsummer Boulevard.
60GF Score
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