Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ESCON Japan REIT Investment (TSE:2971) 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
ESCON Japan REIT Investment had a gross margin of 62.55% for the quarter that ended in Jan. 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.
ESCON Japan REIT Investment Gross Margin % Related Terms
ESCON Japan 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.
TSE:2971 vs SPG, O, KIM: Gross Margin % Comparison
For the REIT - Retail subindustry, ESCON Japan 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.
ESCON Japan REIT Investment Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, ESCON Japan REIT Investment's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ESCON Japan 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.
ESCON Japan REIT Investment (TSE:2971) has a Gross Margin % of 62.55% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on ESCON Japan REIT Investment and its competitors. This is near median its historical median of 63.10. Over the past decade, ESCON Japan REIT Investment's Gross Margin % has ranged from 55.30 to 69.01. According to the industry distribution chart, ESCON Japan REIT Investment ranks #438 out of 670 companies in the REITs industry, placing it in the top 65.4%.
Is ESCON Japan REIT Investment's Gross Margin % too high?
ESCON Japan REIT Investment's current Gross Margin % of 62.55% is near median its 10-year median of 63.10. Over the past 10 years, this metric has ranged from a low of 55.30 to a high of 69.01. The REITs industry median Gross Margin % is 69.71. ESCON Japan REIT Investment's value of 62.55% is 10.3% below this industry median. Based on the distribution chart, ESCON Japan REIT Investment ranks #438 out of 670 companies in the REITs industry, which is below the industry midpoint. Overall, ESCON Japan REIT Investment has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ESCON Japan REIT Investment's Gross Margin % compare to SPG and O?
According to the REITs industry distribution chart, ESCON Japan REIT Investment ranks #438 out of 670 companies for Gross Margin %. This places ESCON Japan REIT Investment in the lower half of its industry. The industry median Gross Margin % is 69.71. ESCON Japan REIT Investment's value of 62.55% is 10.3% below this benchmark. Historically, ESCON Japan REIT Investment's own Gross Margin % has ranged from 55.30 to 69.01 over the past decade. While the company's 10-year median is 63.10 vs. the industry median of 69.71, ESCON Japan REIT Investment 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 69.71, based on 670 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. ESCON Japan REIT Investment's current Gross Margin % of 62.55% is 10.3% 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 ESCON Japan REIT Investment 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. ESCON Japan REIT Investment's current Gross Margin % is 62.55%, which is near median its own 10-year median of 63.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ESCON Japan REIT Investment stock overvalued right now?
Based on GuruFocus' analysis, ESCON Japan REIT Investment (TSE:2971) is currently considered Modestly Undervalued. The stock's GF Value™ is 円134,535.91, compared to a current price of 円111,800.00 — trading 16.9% below its estimated fair value. The current Gross Margin % is 62.55%, which is near median its 10-year median of 63.10 and 10.3% below the REITs industry median of 69.71. ESCON Japan REIT Investment's overall GF Score™ is 60/100 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 ESCON Japan REIT Investment (TSE:2971), the current Gross Margin % is 62.55% as of Jan. 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 ESCON Japan REIT Investment (TSE:2971) Overvalued in 2026?
Based on GuruFocus' analysis, ESCON Japan REIT Investment stock appears to be undervalued.
The current stock price of 円111,800.00 is trading 16.9% below its estimated GF Value™ of 円134,535.91.
GuruFocus considers ESCON Japan REIT Investment to be Modestly Undervalued.
Key valuation signals for TSE:2971:
Gross Margin %: 62.55% (near median its 10-year median of 63.10)
GF Value™: 円134,535.91 vs. price of 円111,800.00 (16.9% below fair value)
Industry Position: 10.3% below the REITs median (#438 of 670)
No single metric tells the full story. See the TSE:2971 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ESCON Japan REIT Investment Corp is a Japanese real estate investment trust that invests in lifestyle-related assets. Its main investment is leasehold land properties known as "sokochi," with stable, high-quality commercial facilities occupying the site.
60GF Score
Get the complete analysis for TSE:2971
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
TSE:2971 has been successfully added to your 
