Japan Hotel REIT InvestmentNIPOF 75 Gross Margin % is 75.00% as of Dec. 2025, which is 9% above its 10-year median of 68.56. GuruFocus rates NIPOF with a GF Score™ of 75/100 and a GF Value™ of $755.11 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 680 REITs companies, Japan Hotel REIT Investment ranks better than 61.18% on this metric.
Japan Hotel REIT Investment (OTCPK:NIPOF) 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
Japan Hotel REIT Investment had a gross margin of 75.00% for the quarter that ended in Dec. 2025 => 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.
Japan Hotel REIT Investment Gross Margin % Related Terms
Japan Hotel REIT Investment 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.
NIPOF vs HST, RHP, APLE: Gross Margin % Comparison
For the REIT - Hotel & Motel subindustry, Japan Hotel REIT Investment'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.
Japan Hotel REIT Investment Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Japan Hotel REIT Investment's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Japan Hotel REIT Investment'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.
Japan Hotel REIT Investment (NIPOF) has a Gross Margin % of 75.00% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Japan Hotel REIT Investment and its competitors. This is near median its historical median of 68.56. Over the past decade, Japan Hotel REIT Investment's Gross Margin % has ranged from 35.23 to 74.62. According to the industry distribution chart, Japan Hotel REIT Investment ranks #264 out of 680 companies in the REITs industry, placing it in the top 38.8%.
Is Japan Hotel REIT Investment's Gross Margin % too high?
Japan Hotel REIT Investment's current Gross Margin % of 75.00% is near median its 10-year median of 68.56. Over the past 10 years, this metric has ranged from a low of 35.23 to a high of 74.62. The REITs industry median Gross Margin % is 69.61. Japan Hotel REIT Investment's value of 75.00% is 7.7% above this industry median. Based on the distribution chart, Japan Hotel REIT Investment ranks #264 out of 680 companies in the REITs industry, which is above the industry midpoint. Overall, Japan Hotel REIT Investment has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Japan Hotel REIT Investment's Gross Margin % compare to HST and RHP?
According to the REITs industry distribution chart, Japan Hotel REIT Investment ranks #264 out of 680 companies for Gross Margin %. This puts Japan Hotel REIT Investment in the upper half of its industry. The industry median Gross Margin % is 69.61. Japan Hotel REIT Investment's value of 75.00% is 7.7% above this benchmark. Historically, Japan Hotel REIT Investment's own Gross Margin % has ranged from 35.23 to 74.62 over the past decade. While the company's 10-year median is 68.56 vs. the industry median of 69.61, Japan Hotel REIT Investment 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 69.61, 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. Japan Hotel REIT Investment's current Gross Margin % of 75.00% is 7.7% 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 Japan Hotel REIT Investment 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. Japan Hotel REIT Investment's current Gross Margin % is 75.00%, which is near median its own 10-year median of 68.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Hotel REIT Investment stock overvalued right now?
Based on GuruFocus' analysis, Japan Hotel REIT Investment (NIPOF) is currently considered Possible Value Trap. The stock's GF Value™ is $755.11, compared to a current price of $471.74 — trading 37.5% below its estimated fair value. The current Gross Margin % is 75.00%, which is near median its 10-year median of 68.56 and 7.7% above the REITs industry median of 69.61. Japan Hotel REIT Investment's overall GF Score™ is 75/100 with 5 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 Japan Hotel REIT Investment (NIPOF), the current Gross Margin % is 75.00% as of Dec. 2025. 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 Japan Hotel REIT Investment (NIPOF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Hotel REIT Investment stock appears to be undervalued.
The current stock price of $471.74 is trading 37.5% below its estimated GF Value™ of $755.11.
GuruFocus considers Japan Hotel REIT Investment to be Possible Value Trap.
Key valuation signals for NIPOF:
Gross Margin %: 75.00% (near median its 10-year median of 68.56)
GF Value™: $755.11 vs. price of $471.74 (37.5% below fair value)
Industry Position: 7.7% above the REITs median (#264 of 680)
No single metric tells the full story. See the NIPOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Hotel REIT Investment Corp is a real estate investment trust. It aims to achieve stable earnings and sustainable growth in the asset from mid- to long-term perspectives. The company invests in business hotels, resort hotels, and city hotels, mainly located in the metropolitan areas and other cities of Japan.
75GF 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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