Nippon Hotel & Residential Investment (TSE:3472) 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
Nippon Hotel & Residential Investment had a gross margin of 64.14% 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 Hotel & Residential Investment Gross Margin % Related Terms
Nippon Hotel & Residential 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.
Nippon Hotel & Residential Investment Gross Margin % Chart
TSE:3472 vs HST, RHP, APLE: Gross Margin % Comparison
For the REIT - Hotel & Motel subindustry, Nippon Hotel & Residential 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.
Nippon Hotel & Residential Investment Gross Margin % vs REITs Industry
* 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 Hotel & Residential Investment (TSE:3472) has a Gross Margin % of 64.14% as of Nov. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Hotel & Residential Investment and its competitors. This is near median its historical median of 59.14. Over the past decade, Nippon Hotel & Residential Investment's Gross Margin % has ranged from 55.68 to 67.21. According to the industry distribution chart, Nippon Hotel & Residential Investment ranks #437 out of 679 companies in the REITs industry, placing it in the top 64.4%.
Is Nippon Hotel & Residential Investment's Gross Margin % too high?
Nippon Hotel & Residential Investment's current Gross Margin % of 64.14% is near median its 10-year median of 59.14. Over the past 10 years, this metric has ranged from a low of 55.68 to a high of 67.21. The REITs industry median Gross Margin % is 69.62. Nippon Hotel & Residential Investment's value of 64.14% is 7.9% below this industry median. Based on the distribution chart, Nippon Hotel & Residential Investment ranks #437 out of 679 companies in the REITs industry, which is below the industry midpoint. Overall, Nippon Hotel & Residential Investment has a GF Score™ of 52/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Hotel & Residential Investment's Gross Margin % compare to HST and RHP?
According to the REITs industry distribution chart, Nippon Hotel & Residential Investment ranks #437 out of 679 companies for Gross Margin %. This places Nippon Hotel & Residential Investment in the lower half of its industry. The industry median Gross Margin % is 69.62. Nippon Hotel & Residential Investment's value of 64.14% is 7.9% below this benchmark. Historically, Nippon Hotel & Residential Investment's own Gross Margin % has ranged from 55.68 to 67.21 over the past decade. While the company's 10-year median is 59.14 vs. the industry median of 69.62, Nippon Hotel & Residential 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 69.62, 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 Hotel & Residential Investment's current Gross Margin % of 64.14% is 7.9% 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 Hotel & Residential Investment and its competitors. For the REITs industry, the median Gross Margin % is 69.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Hotel & Residential Investment's current Gross Margin % is 64.14%, which is near median its own 10-year median of 59.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Hotel & Residential Investment stock overvalued right now?
Based on GuruFocus' analysis, Nippon Hotel & Residential Investment (TSE:3472) is currently considered Modestly Undervalued. The stock's GF Value™ is 円74,148.30, compared to a current price of 円66,200.00 — trading 10.7% below its estimated fair value. The current Gross Margin % is 64.14%, which is near median its 10-year median of 59.14 and 7.9% below the REITs industry median of 69.62. Nippon Hotel & Residential Investment's overall GF Score™ is 52/100 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 Nippon Hotel & Residential Investment (TSE:3472), the current Gross Margin % is 64.14% 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 Hotel & Residential Investment (TSE:3472) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Hotel & Residential Investment stock appears to be undervalued.
The current stock price of 円66,200.00 is trading 10.7% below its estimated GF Value™ of 円74,148.30.
GuruFocus considers Nippon Hotel & Residential Investment to be Modestly Undervalued.
Key valuation signals for TSE:3472:
Gross Margin %: 64.14% (near median its 10-year median of 59.14)
GF Value™: 円74,148.30 vs. price of 円66,200.00 (10.7% below fair value)
Industry Position: 7.9% below the REITs median (#437 of 679)
No single metric tells the full story. See the TSE:3472 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Hotel & Residential Investment Business Description
Nippon Hotel & Residential Investment Corp is a real estate investment trust. The firm invests in onsen and spa-related facilities, and Accomodation. The company principally invests in hot spring-related industries, such as hotels, hot spring facilities and theme parks.
52GF Score
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