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
Nippon Prologis REIT had a gross margin of 56.00% for the quarter that ended in Nov. 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.
Nippon Prologis REIT Gross Margin % Related Terms
Nippon Prologis REIT Gross Margin % Historical Data
* Premium members only.
The historical data trend for Nippon Prologis REIT'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.
For the REIT - Industrial subindustry, Nippon Prologis REIT'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.
Nippon Prologis REIT Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Nippon Prologis REIT's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Prologis REIT'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.
Nippon Prologis REIT (NPONF) has a Gross Margin % of 56.00% as of Nov. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Prologis REIT and its competitors. This is near median its historical median of 56.58. Over the past decade, Nippon Prologis REIT's Gross Margin % has ranged from 52.37 to 64.64. According to the industry distribution chart, Nippon Prologis REIT ranks #530 out of 679 companies in the REITs industry, placing it in the top 78.1%.
Is Nippon Prologis REIT's Gross Margin % too high?
Nippon Prologis REIT's current Gross Margin % of 56.00% is near median its 10-year median of 56.58. Over the past 10 years, this metric has ranged from a low of 52.37 to a high of 64.64. The REITs industry median Gross Margin % is 69.79. Nippon Prologis REIT's value of 56.00% is 19.8% below this industry median. Based on the distribution chart, Nippon Prologis REIT ranks #530 out of 679 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Nippon Prologis REIT has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does Nippon Prologis REIT's Gross Margin % compare to PLD and PSA?
According to the REITs industry distribution chart, Nippon Prologis REIT ranks #530 out of 679 companies for Gross Margin %. This places Nippon Prologis REIT in the lower half of its industry. The industry median Gross Margin % is 69.79. Nippon Prologis REIT's value of 56.00% is 19.8% below this benchmark. Historically, Nippon Prologis REIT's own Gross Margin % has ranged from 52.37 to 64.64 over the past decade. While the company's 10-year median is 56.58 vs. the industry median of 69.79, Nippon Prologis REIT 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 69.79, based on 679 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. Nippon Prologis REIT's current Gross Margin % of 56.00% is 19.8% 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 Nippon Prologis REIT and its competitors. For the REITs industry, the median Gross Margin % is 69.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Prologis REIT's current Gross Margin % is 56.00%, which is near median its own 10-year median of 56.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Prologis REIT stock overvalued right now?
Nippon Prologis REIT (NPONF) has a current Gross Margin % of 56.00%. The stock's GF Value™ is $565.48, compared to a current price of $532.49 — trading 5.8% below its estimated fair value. The current Gross Margin % is 56.00%, which is near median its 10-year median of 56.58 and 19.8% below the REITs industry median of 69.79. Nippon Prologis REIT's overall GF Score™ is 71/100 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 Nippon Prologis REIT (NPONF), the current Gross Margin % is 56.00% as of Nov. 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 Nippon Prologis REIT (NPONF) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Prologis REIT stock appears to be undervalued.
The current stock price of $532.49 is trading 5.8% below its estimated GF Value™ of $565.48.
Key valuation signals for NPONF:
Gross Margin %: 56.00% (near median its 10-year median of 56.58)
GF Value™: $565.48 vs. price of $532.49 (5.8% below fair value)
Industry Position: 19.8% below the REITs median (#530 of 679)
No single metric tells the full story. See the NPONF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Prologis REIT Inc is focused on logistics facilities in Japan. Its investment objective is to maximize unit holder value through a portfolio that generates stable income and achieves steady growth. It invests in high quality Class-A logistics facilities, owning and operating them for medium- to long-term purposes.
71GF Score
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