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
Essex Property Trust had a gross margin of 68.10% 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.
Essex Property Trust Gross Margin % Related Terms
Essex Property Trust Gross Margin % Historical Data
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The historical data trend for Essex Property Trust'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:ESS vs INVH, SUI, MAA: Gross Margin % Comparison
For the REIT - Residential subindustry, Essex Property Trust'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.
Essex Property Trust Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Essex Property Trust's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Essex Property Trust'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.
Essex Property Trust (MEX:ESS) has a Gross Margin % of 68.10% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Essex Property Trust and its competitors. This is 20% below median its historical median of 85.41. Over the past decade, Essex Property Trust's Gross Margin % has ranged from 67.78 to 87.06. According to the industry distribution chart, Essex Property Trust ranks #363 out of 680 companies in the REITs industry, placing it in the top 53.4%.
Is Essex Property Trust's Gross Margin % too high?
Essex Property Trust's current Gross Margin % of 68.10% is 20% below median its 10-year median of 85.41. Over the past 10 years, this metric has ranged from a low of 67.78 to a high of 87.06. The REITs industry median Gross Margin % is 69.61. Essex Property Trust's value of 68.10% is 2.2% below this industry median. Based on the distribution chart, Essex Property Trust ranks #363 out of 680 companies in the REITs industry, which is below the industry midpoint. Overall, Essex Property Trust has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does Essex Property Trust's Gross Margin % compare to INVH and SUI?
According to the REITs industry distribution chart, Essex Property Trust ranks #363 out of 680 companies for Gross Margin %. This places Essex Property Trust in the lower half of its industry. The industry median Gross Margin % is 69.61. Essex Property Trust's value of 68.10% is 2.2% below this benchmark. Historically, Essex Property Trust's own Gross Margin % has ranged from 67.78 to 87.06 over the past decade. While the company's 10-year median is 85.41 vs. the industry median of 69.61, Essex Property Trust 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 69.61, 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. Essex Property Trust's current Gross Margin % of 68.10% is 2.2% 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 Essex Property Trust and its competitors. For the REITs industry, the median Gross Margin % is 69.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essex Property Trust's current Gross Margin % is 68.10%, which is 20% below median its own 10-year median of 85.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Essex Property Trust stock overvalued right now?
Essex Property Trust (MEX:ESS) has a current Gross Margin % of 68.10%. The stock's GF Value™ is MXN4,039.24, compared to a current price of MXN4,081.12 — trading 1% above its estimated fair value. The current Gross Margin % is 68.10%, which is 20% below median its 10-year median of 85.41 and 2.2% below the REITs industry median of 69.61. Essex Property Trust's overall GF Score™ is 78/100 with 11 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 Essex Property Trust (MEX:ESS), the current Gross Margin % is 68.10% 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 Essex Property Trust (MEX:ESS) Overvalued in 2026?
Based on GuruFocus' analysis, Essex Property Trust stock appears to be overvalued.
The current stock price of MXN4,081.12 is trading 1% above its estimated GF Value™ of MXN4,039.24.
Key valuation signals for MEX:ESS:
Gross Margin %: 68.10% (20% below median its 10-year median of 85.41)
GF Value™: MXN4,039.24 vs. price of MXN4,081.12 (1% above fair value)
Industry Position: 2.2% below the REITs median (#363 of 680)
No single metric tells the full story. See the MEX:ESS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Essex Property Trust owns a portfolio of 259 apartment communities with over 63,000 units. The company focuses on owning large, high-quality properties on the West Coast in the urban and suburban submarkets of Southern California, Northern California, and Seattle.
78GF 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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