MEX:AMH's Gross Margin % is ranked worse than 76.91% of 680
companies
in the REITs industry
Industry Median: 69.955
vs MEX:AMH: 57.11
American Homes 4 Rent had a gross margin of 57.21% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for American Homes 4 Rent was 1.00% per year.
American Homes 4 Rent (MEX:AMH) 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
American Homes 4 Rent had a gross margin of 57.21% 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.
American Homes 4 Rent Gross Margin % Related Terms
American Homes 4 Rent Gross Margin % Historical Data
* Premium members only.
The historical data trend for American Homes 4 Rent'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.
MEX:AMH vs ELS, UDR, CPT: Gross Margin % Comparison
For the REIT - Residential subindustry, American Homes 4 Rent'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.
American Homes 4 Rent Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, American Homes 4 Rent's Gross Margin % distribution charts can be found below:
* The bar in red indicates where American Homes 4 Rent'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.
American Homes 4 Rent (MEX:AMH) has a Gross Margin % of 57.21% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on American Homes 4 Rent and its competitors. This is near median its historical median of 55.44. Over the past decade, American Homes 4 Rent's Gross Margin % has ranged from 53.93 to 57.11. According to the industry distribution chart, American Homes 4 Rent ranks #523 out of 680 companies in the REITs industry, placing it in the top 76.9%.
Is American Homes 4 Rent's Gross Margin % too high?
American Homes 4 Rent's current Gross Margin % of 57.21% is near median its 10-year median of 55.44. Over the past 10 years, this metric has ranged from a low of 53.93 to a high of 57.11. The REITs industry median Gross Margin % is 69.96. American Homes 4 Rent's value of 57.21% is 18.2% below this industry median. Based on the distribution chart, American Homes 4 Rent ranks #523 out of 680 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, American Homes 4 Rent has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does American Homes 4 Rent's Gross Margin % compare to ELS and UDR?
According to the REITs industry distribution chart, American Homes 4 Rent ranks #523 out of 680 companies for Gross Margin %. This places American Homes 4 Rent in the lower half of its industry. The industry median Gross Margin % is 69.96. American Homes 4 Rent's value of 57.21% is 18.2% below this benchmark. Historically, American Homes 4 Rent's own Gross Margin % has ranged from 53.93 to 57.11 over the past decade. While the company's 10-year median is 55.44 vs. the industry median of 69.96, American Homes 4 Rent 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 69.96, 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. American Homes 4 Rent's current Gross Margin % of 57.21% is 18.2% 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 American Homes 4 Rent and its competitors. For the REITs industry, the median Gross Margin % is 69.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Homes 4 Rent's current Gross Margin % is 57.21%, which is near median its own 10-year median of 55.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Homes 4 Rent stock overvalued right now?
American Homes 4 Rent (MEX:AMH) has a current Gross Margin % of 57.21%. The stock's GF Value™ is MXN836.80, compared to a current price of MXN698.98 — trading 16.5% below its estimated fair value. The current Gross Margin % is 57.21%, which is near median its 10-year median of 55.44 and 18.2% below the REITs industry median of 69.96. American Homes 4 Rent's overall GF Score™ is 79/100 with 8 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 American Homes 4 Rent (MEX:AMH), the current Gross Margin % is 57.21% 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 American Homes 4 Rent (MEX:AMH) Overvalued in 2026?
Based on GuruFocus' analysis, American Homes 4 Rent stock appears to be undervalued.
The current stock price of MXN698.98 is trading 16.5% below its estimated GF Value™ of MXN836.80.
Key valuation signals for MEX:AMH:
Gross Margin %: 57.21% (near median its 10-year median of 55.44)
GF Value™: MXN836.80 vs. price of MXN698.98 (16.5% below fair value)
Industry Position: 18.2% below the REITs median (#523 of 680)
No single metric tells the full story. See the MEX:AMH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Homes 4 Rent is a real estate investment trust focused on acquiring, operating, and leasing single-family homes as rental properties throughout the United States. The company's real estate portfolio is largely comprised of single-family properties in urban markets in the Southern and Midwestern regions of the U.S. American Homes 4 Rent's land holdings also represent a sizable percentage of its total assets in terms of value. The company derives the vast majority of its income in the form of rental revenue from single-family properties through short-term or annual leases. The firm's geographical markets include Dallas, Texas; Indianapolis, Indiana; Atlanta, Georgia; and Charlotte, North Carolina in terms of the number of properties in each.
79GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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