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
Merlin Properties SOCIMI had a gross margin of 89.37% 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.
Merlin Properties SOCIMI Gross Margin % Related Terms
Merlin Properties SOCIMI 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.
For the REIT - Office subindustry, Merlin Properties SOCIMI'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.
Merlin Properties SOCIMI Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Merlin Properties SOCIMI's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Merlin Properties SOCIMI'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.
Merlin Properties SOCIMI (MRPRF) has a Gross Margin % of 89.37% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Merlin Properties SOCIMI and its competitors. According to the industry distribution chart, Merlin Properties SOCIMI ranks #48 out of 680 companies in the REITs industry, placing it in the top 7.1%.
Is Merlin Properties SOCIMI's Gross Margin % too high?
Merlin Properties SOCIMI's current Gross Margin % is 89.37%. The REITs industry median Gross Margin % is 69.61. Merlin Properties SOCIMI's value of 89.37% is 28.4% above this industry median. Based on the distribution chart, Merlin Properties SOCIMI ranks #48 out of 680 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Merlin Properties SOCIMI has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Merlin Properties SOCIMI's Gross Margin % compare to BXP and ARE?
According to the REITs industry distribution chart, Merlin Properties SOCIMI ranks #48 out of 680 companies for Gross Margin %. This places Merlin Properties SOCIMI in the top 7% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 69.61. Merlin Properties SOCIMI's value of 89.37% is 28.4% above this benchmark. 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. Merlin Properties SOCIMI's current Gross Margin % of 89.37% is 28.4% 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 Merlin Properties SOCIMI 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. Merlin Properties SOCIMI's current Gross Margin % is 89.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merlin Properties SOCIMI stock overvalued right now?
Based on GuruFocus' analysis, Merlin Properties SOCIMI (MRPRF) is currently considered Significantly Overvalued. The stock's GF Value™ is $12.56, compared to a current price of $17.90 — trading 42.5% above its estimated fair value. The current Gross Margin % is 89.37% and 28.4% above the REITs industry median of 69.61. Merlin Properties SOCIMI's overall GF Score™ is 77/100 with 7 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 Merlin Properties SOCIMI (MRPRF), the current Gross Margin % is 89.37% 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 Merlin Properties SOCIMI (MRPRF) Overvalued in 2026?
Based on GuruFocus' analysis, Merlin Properties SOCIMI stock appears to be overvalued.
The current stock price of $17.90 is trading 42.5% above its estimated GF Value™ of $12.56.
GuruFocus considers Merlin Properties SOCIMI to be Significantly Overvalued.
Key valuation signals for MRPRF:
Gross Margin %: 89.37%
GF Value™: $12.56 vs. price of $17.90 (42.5% above fair value)
Industry Position: 28.4% above the REITs median (#48 of 680)
No single metric tells the full story. See the MRPRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Merlin Properties is Spain's largest listed SOCIMI/REIT, managing a EUR 12.6 billion portfolio across offices, logistics, shopping centers, and data centers. Over the coming years, it will bring 730 MW of data center capacity online, increasing its gross rental income contribution from just 6% in 2025 to 65% by 2032. Its total GRI will more than triple to EUR 1.8 billion, driven by this "Mega" plan. Additionally, it has a pipeline of 4.4 GW worth of land at varying stages of readiness it can develop.
77GF Score
Get the complete analysis for MRPRF
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MRPRF has been successfully added to your 
