Universal Health Realtyome Trust (NYSE:UHT) 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
Universal Health Realtyome Trust had a gross margin of 94.28% for the quarter that ended in Mar. 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.
Universal Health Realtyome Trust Gross Margin % Related Terms
Universal Health Realtyome Trust 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.
Universal Health Realtyome Trust Gross Margin % Chart
For the REIT - Healthcare Facilities subindustry, Universal Health Realtyome Trust'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.
Universal Health Realtyome Trust Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Universal Health Realtyome Trust's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Universal Health Realtyome Trust'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.
Universal Health Realtyome Trust (UHT) has a Gross Margin % of 94.28% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Universal Health Realtyome Trust and its competitors. This is near median its historical median of 94.73. Over the past decade, Universal Health Realtyome Trust's Gross Margin % has ranged from 94.32 to 95.14. According to the industry distribution chart, Universal Health Realtyome Trust ranks #72 out of 680 companies in the REITs industry, placing it in the top 10.6%.
Is Universal Health Realtyome Trust's Gross Margin % too high?
Universal Health Realtyome Trust's current Gross Margin % of 94.28% is near median its 10-year median of 94.73. Over the past 10 years, this metric has ranged from a low of 94.32 to a high of 95.14. The REITs industry median Gross Margin % is 69.61. Universal Health Realtyome Trust's value of 94.28% is 35.4% above this industry median. Based on the distribution chart, Universal Health Realtyome Trust ranks #72 out of 680 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Universal Health Realtyome Trust has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Universal Health Realtyome Trust's Gross Margin % compare to NHP and CHCT?
According to the REITs industry distribution chart, Universal Health Realtyome Trust ranks #72 out of 680 companies for Gross Margin %. This places Universal Health Realtyome Trust in the top 11% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 69.61. Universal Health Realtyome Trust's value of 94.28% is 35.4% above this benchmark. Historically, Universal Health Realtyome Trust's own Gross Margin % has ranged from 94.32 to 95.14 over the past decade. While the company's 10-year median is 94.73 vs. the industry median of 69.61, Universal Health Realtyome Trust 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. Universal Health Realtyome Trust's current Gross Margin % of 94.28% is 35.4% 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 Universal Health Realtyome Trust 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. Universal Health Realtyome Trust's current Gross Margin % is 94.28%, which is near median its own 10-year median of 94.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Health Realtyome Trust stock overvalued right now?
Based on GuruFocus' analysis, Universal Health Realtyome Trust (UHT) is currently considered Fairly Valued. The stock's GF Value™ is $40.74, compared to a current price of $41.67 — trading 2.3% above its estimated fair value. The current Gross Margin % is 94.28%, which is near median its 10-year median of 94.73 and 35.4% above the REITs industry median of 69.61. Universal Health Realtyome Trust's overall GF Score™ is 75/100 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 Universal Health Realtyome Trust (UHT), the current Gross Margin % is 94.28% 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 Universal Health Realtyome Trust (UHT) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Health Realtyome Trust stock appears to be overvalued.
The current stock price of $41.67 is trading 2.3% above its estimated GF Value™ of $40.74.
GuruFocus considers Universal Health Realtyome Trust to be Fairly Valued.
Key valuation signals for UHT:
Gross Margin %: 94.28% (near median its 10-year median of 94.73)
GF Value™: $40.74 vs. price of $41.67 (2.3% above fair value)
Industry Position: 35.4% above the REITs median (#72 of 680)
No single metric tells the full story. See the UHT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Health Realtyome Trust Business Description
Universal Health Realty Income Trust is a healthcare REIT. The company is engaged in the business of investing in and leasing healthcare and human service facilities through direct ownership or through joint ventures, which aggregate into a single reportable segment. The company actively manages a portfolio of healthcare and human service facilities. The revenue and net income are generated from the operation of the investment portfolio, located throughout the United States.
75GF Score
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