Nippon Prologis REIT Inc gross margin has been in long-term decline. The average rate of decline per year is -3.1%.
The historical rank and industry rank for Nippon Prologis REIT's Gross Margin % or its related term are showing as below:
TSE:3283'
s Gross Margin % Range Over the Past 10 Years
Min: 52.37 Med: 57.4 Max: 65.44
Current: 52.37
During the past 10 years, the highestGross Margin % of Nippon Prologis REIT was 65.44%. The lowest was 52.37%. And the median was 57.40%.
TSE:3283's Gross Margin % is ranked worse than 83.25% of 633
companies
in the REITs industry
Industry Median: 68.82
vs TSE:3283: 52.37
Nippon Prologis REIT had a gross margin of 53.10% for the quarter that ended in Nov. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Nippon Prologis REIT was -3.10% per year.
Nippon Prologis REIT Gross Margin % Historical Data
The historical data trend for Nippon Prologis REIT'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.
Competitive Comparison of Nippon Prologis REIT's Gross Margin %
For the REIT - Industrial subindustry, Nippon Prologis REIT'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.
Nippon Prologis REIT's Gross Margin % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Nippon Prologis REIT's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Prologis REIT'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
Nippon Prologis REIT had a gross margin of 53.10% for the quarter that ended in Nov. 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.
Nippon Prologis REIT Gross Margin % Related Terms
Thank you for viewing the detailed overview of Nippon Prologis REIT's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Nippon Prologis REIT (TSE:3283) Business Description
Nippon Prologis REIT Inc is a Japanese real estate investment trust primarily involved in owning, operating, and developing logistics facilities in Japan's major urban markets. The company's real estate portfolio is comprised mainly of large, multitenant warehouse facilities located near transportation hubs and population clusters. Nippon Prologis also operates a sizable number of build-to-suit facilities with similar physical specifications to its other buildings. The majority of the company's properties are located in the Greater Tokyo area, while a significant percentage are located in the Greater Osaka area as well. Nippon Prologis derives nearly all of its income from rental revenue. Its customers include a variety of logistics, distribution, transportation, and industrial companies.
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