Central General Development Co (TSE:3238) 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
Central General Development Co had a gross margin of 16.88% for the quarter that ended in Mar. 2026 => No sustainable 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.
Central General Development Co Gross Margin % Related Terms
Central General Development Co 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.
Central General Development Co Gross Margin % Chart
TSE:3238 vs CBRE, BEKE, JLL: Gross Margin % Comparison
For the Real Estate Services subindustry, Central General Development Co'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.
Central General Development Co Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Central General Development Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Central General Development Co'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.
Central General Development Co (TSE:3238) has a Gross Margin % of 16.88% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Central General Development Co and its competitors. This is near median its historical median of 17.16. Over the past decade, Central General Development Co's Gross Margin % has ranged from 15.89 to 19.11. According to the industry distribution chart, Central General Development Co ranks #1344 out of 1642 companies in the Real Estate industry, placing it in the top 81.9%.
Is Central General Development Co's Gross Margin % too high?
Central General Development Co's current Gross Margin % of 16.88% is near median its 10-year median of 17.16. Over the past 10 years, this metric has ranged from a low of 15.89 to a high of 19.11. The Real Estate industry median Gross Margin % is 37.00. Central General Development Co's value of 16.88% is 54.4% below this industry median. Based on the distribution chart, Central General Development Co ranks #1344 out of 1642 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Central General Development Co has a GF Score™ of 48/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Central General Development Co's Gross Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Central General Development Co ranks #1344 out of 1642 companies for Gross Margin %. This places Central General Development Co in the lower half of its industry. The industry median Gross Margin % is 37.00. Central General Development Co's value of 16.88% is 54.4% below this benchmark. Historically, Central General Development Co's own Gross Margin % has ranged from 15.89 to 19.11 over the past decade. While the company's 10-year median is 17.16 vs. the industry median of 37.00, Central General Development Co 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 Real Estate company?
The median Gross Margin % among Real Estate companies is 37.00, based on 1,642 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. Central General Development Co's current Gross Margin % of 16.88% is 54.4% 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 Central General Development Co and its competitors. For the Real Estate industry, the median Gross Margin % is 37.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Central General Development Co's current Gross Margin % is 16.88%, which is near median its own 10-year median of 17.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Central General Development Co stock overvalued right now?
Based on GuruFocus' analysis, Central General Development Co (TSE:3238) is currently considered Possible Value Trap. The stock's GF Value™ is 円581.53, compared to a current price of 円367.00 — trading 36.9% below its estimated fair value. The current Gross Margin % is 16.88%, which is near median its 10-year median of 17.16 and 54.4% below the Real Estate industry median of 37.00. Central General Development Co's overall GF Score™ is 48/100 with 8 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 Central General Development Co (TSE:3238), the current Gross Margin % is 16.88% 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 Central General Development Co (TSE:3238) Overvalued in 2026?
Based on GuruFocus' analysis, Central General Development Co stock appears to be undervalued.
The current stock price of 円367.00 is trading 36.9% below its estimated GF Value™ of 円581.53.
GuruFocus considers Central General Development Co to be Possible Value Trap.
Key valuation signals for TSE:3238:
Gross Margin %: 16.88% (near median its 10-year median of 17.16)
GF Value™: 円581.53 vs. price of 円367.00 (36.9% below fair value)
Industry Position: 54.4% below the Real Estate median (#1344 of 1642)
No single metric tells the full story. See the TSE:3238 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Central General Development Co Business Description
Central General Development Co Ltd is engaged in the real estate business in Japan. The company is involved in the management and operation of real estate-related businesses in Japan. It sells condominiums and provides after-sale services, such as inspection and repairs and leases buildings.
48GF Score
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