Leo Palace21 (STU:MQI) Gross Margin % : 16.33% (As of Dec. 2023)

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What is Leo Palace21 Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Leo Palace21's Gross Profit for the three months ended in Dec. 2023 was €109 Mil. Leo Palace21's Revenue for the three months ended in Dec. 2023 was €667 Mil. Therefore, Leo Palace21's Gross Margin % for the quarter that ended in Dec. 2023 was 16.33%.

Warning Sign:

Leo Palace21 Corp gross margin has been in long-term decline. The average rate of decline per year is -7%.

The historical rank and industry rank for Leo Palace21's Gross Margin % or its related term are showing as below:

STU:MQI' s Gross Margin % Range Over the Past 10 Years
Min: 5.16 Med: 14.93 Max: 18.1
Current: 15.37

During the past 13 years, the highest Gross Margin % of Leo Palace21 was 18.10%. The lowest was 5.16%. And the median was 14.93%.

STU:MQI's Gross Margin % is ranked worse than
83.56% of 1654 companies
in the Real Estate industry
Industry Median: 36.83 vs STU:MQI: 15.37

Leo Palace21 had a gross margin of 16.33% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Leo Palace21 was -7.00% per year.

Leo Palace21 Gross Margin % Historical Data

The historical data trend for Leo Palace21'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.

Leo Palace21 Gross Margin % Chart

Leo Palace21 Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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15.09

5.87

5.16

11.57

13.11

Leo Palace21 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															13.60	11.26	16.98	16.78	16.33

Competitive Comparison of Leo Palace21's Gross Margin %

For the Real Estate Services subindustry, Leo Palace21'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.

Leo Palace21's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Leo Palace21's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Leo Palace21's Gross Margin % falls into.

Leo Palace21 Gross Margin % Calculation

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

Leo Palace21's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	372.3	/	2840.125
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2840.125 - 2467.788)	/	2840.125
	=	13.11 %

Leo Palace21'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 )
	=	108.9	/	666.999
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(666.999 - 558.091)	/	666.999
	=	16.33 %

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.

Leo Palace21 (STU:MQI) 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

Leo Palace21 had a gross margin of 16.33% for the quarter that ended in Dec. 2023 => No sustainable 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.

Leo Palace21 Gross Margin % Related Terms

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Leo Palace21 (STU:MQI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Leo Palace21 Corp (STU:MQI) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

8848:Japan MQI:Germany

Address

2-54-11 Honcho, Nakano-ku, Tokyo, JPN, 164-8622

Website

http://www.leopalace21.co.jp

Leo Palace21 Corp has two core businesses: Construction, which builds apartment buildings, and Leasing, which rents and manages units in the apartments that the company builds. Upon completion, Leo Palace21 typically sells buildings to investors and then pays them a fixed rental amount for all the units in the building, whether occupied or not. LeoPalace21 then rents, manages, and maintains the units and keeps all rent from tenants as its own revenue. The company also has an Elderly Care business, which runs nursing facilities, and a Hotel & Resort business. The vast majority of LeoPalace21's revenue comes from the Leasing segment, and more than 90% of the company's revenue is generated in Japan.

Leo Palace21 (STU:MQI) Headlines

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