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Real Matters (TSX:REAL) Gross Margin % : 27.30% (As of Dec. 2023)


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What is Real Matters Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Real Matters's Gross Profit for the three months ended in Dec. 2023 was C$13.0 Mil. Real Matters's Revenue for the three months ended in Dec. 2023 was C$47.6 Mil. Therefore, Real Matters's Gross Margin % for the quarter that ended in Dec. 2023 was 27.30%.

Warning Sign:

Real Matters Inc gross margin has been in long-term decline. The average rate of decline per year is -3.8%.


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

TSX:REAL' s Gross Margin % Range Over the Past 10 Years
Min: 19.3   Med: 28.45   Max: 35.56
Current: 26.61


During the past 10 years, the highest Gross Margin % of Real Matters was 35.56%. The lowest was 19.30%. And the median was 28.45%.

TSX:REAL's Gross Margin % is ranked worse than
65.28% of 1653 companies
in the Real Estate industry
Industry Median: 36.98 vs TSX:REAL: 26.61

Real Matters had a gross margin of 27.30% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Real Matters was -3.80% per year.


Real Matters Gross Margin % Historical Data

The historical data trend for Real Matters'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.

Real Matters Gross Margin % Chart

Real Matters Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.65 35.56 32.59 25.16 26.24

Real Matters 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.65 26.40 26.39 26.47 27.30

Competitive Comparison of Real Matters's Gross Margin %

For the Real Estate Services subindustry, Real Matters'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.


Real Matters's Gross Margin % Distribution in the Real Estate Industry

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

* The bar in red indicates where Real Matters's Gross Margin % falls into.



Real Matters Gross Margin % Calculation

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

Real Matters's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=58.2 / 221.792
=(Revenue - Cost of Goods Sold) / Revenue
=(221.792 - 163.588) / 221.792
=26.24 %

Real Matters'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 )
=13 / 47.553
=(Revenue - Cost of Goods Sold) / Revenue
=(47.553 - 34.573) / 47.553
=27.30 %

* 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.


Real Matters  (TSX:REAL) 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

Real Matters had a gross margin of 27.30% 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.


Real Matters Gross Margin % Related Terms

Thank you for viewing the detailed overview of Real Matters's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Real Matters (TSX:REAL) Business Description

Traded in Other Exchanges
Address
50 Minthorn Boulevard, Suite 401, Markham, ON, CAN, L3T 7X8
Real Matters Inc is a Canadian network management services provider for the mortgage lending and insurance industries. The company's platform combines proprietary technology and network management capabilities with tens of thousands of independent qualified field agents. Its operating segment includes U.S. Appraisal; U.S. Title and Canada. The company generates maximum revenue from the U.S. Appraisal segment. Its U.S. Appraisal segment provides residential mortgage appraisals for purchase, refinance, and home equity transactions through its Solidifi brand.