American Homes 4 Rent (American Homes 4 Rent) Gross Margin %

: 57.44% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. American Homes 4 Rent's Gross Profit for the three months ended in Dec. 2023 was $234.75 Mil. American Homes 4 Rent's Revenue for the three months ended in Dec. 2023 was $408.66 Mil. Therefore, American Homes 4 Rent's Gross Margin % for the quarter that ended in Dec. 2023 was 57.44%.

The historical rank and industry rank for American Homes 4 Rent's Gross Margin % or its related term are showing as below:

AMHpD.PFD' s Gross Margin % Range Over the Past 10 Years
Min: 53.48 Med: 54.77 Max: 55.85
Current: 55.48

During the past 13 years, the highest Gross Margin % of American Homes 4 Rent was 55.85%. The lowest was 53.48%. And the median was 54.77%.

AMHpD.PFD's Gross Margin % is ranked worse than
77.57% of 633 companies
in the REITs industry
Industry Median: 68.71 vs AMHpD.PFD: 55.48

American Homes 4 Rent had a gross margin of 57.44% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for American Homes 4 Rent was 0.50% per year.

American Homes 4 Rent Gross Margin % Historical Data

The historical data trend for American Homes 4 Rent'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.

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American Homes 4 Rent Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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54.00

53.93

54.98

55.40

55.48

American Homes 4 Rent Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															56.61	55.28	56.21	53.09	57.44

Competitive Comparison

For the REIT - Residential subindustry, American Homes 4 Rent'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.

American Homes 4 Rent Gross Margin % Distribution

For the REITs industry and Real Estate sector, American Homes 4 Rent's Gross Margin % distribution charts can be found below:

* The bar in red indicates where American Homes 4 Rent's Gross Margin % falls into.

American Homes 4 Rent Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

American Homes 4 Rent's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	900.8	/	1623.605
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1623.605 - 722.822)	/	1623.605
	=	55.48 %

American Homes 4 Rent's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	234.7	/	408.657
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(408.657 - 173.909)	/	408.657
	=	57.44 %

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.

American Homes 4 Rent (NYSE:AMHpD.PFD) 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

American Homes 4 Rent had a gross margin of 57.44% for the quarter that ended in Dec. 2023 => 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.

American Homes 4 Rent Gross Margin % Related Terms

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American Homes 4 Rent (American Homes 4 Rent) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » American Homes 4 Rent (NYSE:AMHpD.PFD) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

AMHpH.PFD:USA AMHpG.PFD:USA AMH:USA A4XA:Germany

Address

280 Pilot Road, Las Vegas, NV, USA, 89119

Website

https://www.amh.com

American Homes 4 Rent is a real estate investment trust primarily focused on acquiring, operating, and leasing single-family homes as rental properties throughout the United States. The company's real estate portfolio is largely comprised of single-family properties in urban markets in the Southern and Midwestern regions of the U.S. American Homes 4 Rent's land holdings also represent a sizable percentage of its total assets in terms of value. The company derives the vast majority of its income in the form of rental revenue from single-family properties through short-term or annual leases. The firm's largest geographical markets include Dallas, Texas; Indianapolis, Indiana; Atlanta, Georgia; and Charlotte, North Carolina in terms of the number of properties in each.