Gross Margin % is calculated as gross profit divided by its revenue. CorePoint Lodging's Gross Profit for the
three
months ended in Sep. 2021 was $54.0 Mil. CorePoint Lodging's Revenue for the
three
months ended in Sep. 2021 was $142.0 Mil. Therefore, CorePoint Lodging's Gross Margin % for the quarter that ended in Sep. 2021 was 38.03%.
Warning Sign:
CorePoint Lodging Inc gross margin has been in long-term decline. The average rate of decline per year is -26.6%.
The historical rank and industry rank for CorePoint Lodging's Gross Margin % or its related term are showing as below:
CPLG'
s Gross Margin % Range Over the Past 10 Years
Min: 13.63 Med: 34.95 Max: 97.75
Current: 27.21
During the past 6 years, the highestGross Margin % of CorePoint Lodging was 97.75%. The lowest was 13.63%. And the median was 34.95%.
CPLG's Gross Margin % is ranked worse than 95.69% of 649
companies
in the REITs industry
Industry Median: 68.66
vs CPLG: 27.21
CorePoint Lodging had a gross margin of 38.03% for the quarter that ended in Sep. 2021 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for CorePoint Lodging was -26.60% per year.
CorePoint Lodging Gross Margin % Historical Data
The historical data trend for CorePoint Lodging'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.
* Premium members only.
CorePoint Lodging Annual Data
Trend
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Gross Margin %
39.27
36.72
33.18
29.19
13.63
CorePoint Lodging Quarterly Data
Dec16
Mar17
Jun17
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Gross Margin %
19.63
6.98
17.53
35.51
38.03
Competitive Comparison
For the REIT - Hotel & Motel subindustry, CorePoint Lodging'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.
CorePoint Lodging Gross Margin % Distribution
For the REITs industry and Real Estate sector, CorePoint Lodging's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CorePoint Lodging'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.
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
CorePoint Lodging had a gross margin of 38.03% for the quarter that ended in Sep. 2021 => Competition eroding margins
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.
CorePoint Lodging Gross Margin % Related Terms
Thank you for viewing the detailed overview of CorePoint Lodging's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
CorePoint Lodging Inc is a lodging real estate investment trust strategically focused on serving the midscale and upper-midscale select-service lodging segments. The company's portfolio includes over 209 hotels with around 27,800 rooms in locations in or near employment centers, airports, and major travel thoroughfares. The company primarily derives revenues from its hotel operations.
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