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National Health Investors (MEX:NHI) 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
National Health Investors had a gross margin of 97.56% 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.
National Health Investors Gross Margin % Related Terms
National Health Investors Gross Margin % Historical Data
* 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:NHI vs MPT, SBRA, DHC: Gross Margin % Comparison
For the REIT - Healthcare Facilities subindustry, National Health Investors'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.
National Health Investors Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, National Health Investors's Gross Margin % distribution charts can be found below:
* The bar in red indicates where National Health Investors'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.
National Health Investors (MEX:NHI) has a Gross Margin % of 97.56% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on National Health Investors and its competitors. This is near median its historical median of 96.67. Over the past decade, National Health Investors' Gross Margin % has ranged from 96.10 to 98.18. According to the industry distribution chart, National Health Investors ranks #47 out of 676 companies in the REITs industry, placing it in the top 7%.
Is National Health Investors' Gross Margin % too high?
National Health Investors' current Gross Margin % of 97.56% is near median its 10-year median of 96.67. Over the past 10 years, this metric has ranged from a low of 96.10 to a high of 98.18. The REITs industry median Gross Margin % is 69.71. National Health Investors' value of 97.56% is 40% above this industry median. Based on the distribution chart, National Health Investors ranks #47 out of 676 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, National Health Investors has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does National Health Investors' Gross Margin % compare to MPT and SBRA?
According to the REITs industry distribution chart, National Health Investors ranks #47 out of 676 companies for Gross Margin %. This places National Health Investors in the top 7% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 69.71. National Health Investors' value of 97.56% is 40% above this benchmark. Historically, National Health Investors' own Gross Margin % has ranged from 96.10 to 98.18 over the past decade. While the company's 10-year median is 96.67 vs. the industry median of 69.71, National Health Investors 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 REITs company?
The median Gross Margin % among REITs companies is 69.71, based on 676 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. National Health Investors's current Gross Margin % of 97.56% is 40% 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 National Health Investors and its competitors. For the REITs industry, the median Gross Margin % is 69.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. National Health Investors's current Gross Margin % is 97.56%, which is near median its own 10-year median of 96.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is National Health Investors stock overvalued right now?
National Health Investors (MEX:NHI) has a current Gross Margin % of 97.56%. The stock's GF Value™ is MXN1,502.86, compared to a current price of MXN1,484.43 — trading 1.2% below its estimated fair value. The current Gross Margin % is 97.56%, which is near median its 10-year median of 96.67 and 40% above the REITs industry median of 69.71. National Health Investors' overall GF Score™ is 83/100 with 4 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 National Health Investors (MEX:NHI), the current Gross Margin % is 97.56% 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 National Health Investors (MEX:NHI) Overvalued in 2026?
Based on GuruFocus' analysis, National Health Investors stock appears to be undervalued.
The current stock price of MXN1,484.43 is trading 1.2% below its estimated GF Value™ of MXN1,502.86.
Key valuation signals for MEX:NHI:
Gross Margin %: 97.56% (near median its 10-year median of 96.67)
GF Value™: MXN1,502.86 vs. price of MXN1,484.43 (1.2% below fair value)
Industry Position: 40% above the REITs median (#47 of 676)
No single metric tells the full story. See the MEX:NHI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
National Health Investors Inc is a self-managed REIT that owns, leases, operates, and finances the development of senior housing communities and medical facilities. It operates through two segments: Real Estate Investments and Senior Housing Operating Portfolio (SHOP). The Real Estate Investments segment, which generates the majority of revenue, includes real estate leases, mortgages, and other notes receivable related to independent living facilities, assisted living facilities, entrance fee communities, senior living campuses, skilled nursing facilities, and a hospital. The SHOP segment consists of ventures that own and operate independent living facilities. The company's revenues are derived from rental income, interest and other income, and resident fees and services.
83GF Score
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