Gross Margin % is calculated as gross profit divided by its revenue. UDR's Gross Profit for the
three
months ended in Dec. 2023 was $102 Mil. UDR's Revenue for the
three
months ended in Dec. 2023 was $413 Mil. Therefore, UDR's Gross Margin % for the quarter that ended in Dec. 2023 was 24.75%.
Warning Sign:
UDR Inc gross margin has been in long-term decline. The average rate of decline per year is -2.9%.
The historical rank and industry rank for UDR's Gross Margin % or its related term are showing as below:
UDR'
s Gross Margin % Range Over the Past 10 Years
Min: 17.29 Med: 24.5 Max: 27.36
Current: 24.12
During the past 13 years, the highestGross Margin % of UDR was 27.36%. The lowest was 17.29%. And the median was 24.50%.
UDR's Gross Margin % is ranked worse than 96.37% of 633
companies
in the REITs industry
Industry Median: 68.71
vs UDR: 24.12
UDR had a gross margin of 24.75% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for UDR was -2.90% per year.
UDR Gross Margin % Historical Data
The historical data trend for UDR'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.
UDR Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Gross Margin %
25.03
17.29
17.67
21.82
24.12
UDR Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Gross Margin %
24.51
23.65
23.77
24.29
24.75
Competitive Comparison
For the REIT - Residential subindustry, UDR'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.
UDR Gross Margin % Distribution
For the REITs industry and Real Estate sector, UDR's Gross Margin % distribution charts can be found below:
* The bar in red indicates where UDR'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.
UDR (NYSE:UDR) 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
UDR had a gross margin of 24.75% for the quarter that ended in Dec. 2023 => 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.
UDR Gross Margin % Related Terms
Thank you for viewing the detailed overview of UDR's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
UDR is a real estate investment trust that owns, operates, acquires, renovates, develops, redevelops, disposes of, and manages multifamily apartment communities in targeted markets located in the United States. The company has two reportable segments; Same-Store Communities segment represents those communities acquired, developed, and stabilized prior to January 1, 2021, and held as of December 31, 2022, and Non-Mature Communities/Other segment represents those communities that do not meet the criteria to be included in Same-Store Communities, including, but not limited to, recently acquired, developed and redeveloped communities, and the non-apartment components of mixed-use properties. The company generates key revenue from Same-Store Communities.
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