Gross Margin % is calculated as gross profit divided by its revenue. Redfin's Gross Profit for the
three
months ended in Dec. 2023 was $73 Mil. Redfin's Revenue for the
three
months ended in Dec. 2023 was $218 Mil. Therefore, Redfin's Gross Margin % for the quarter that ended in Dec. 2023 was 33.54%.
The historical rank and industry rank for Redfin's Gross Margin % or its related term are showing as below:
RDFN'
s Gross Margin % Range Over the Past 10 Years
Min: 18.48 Med: 27.15 Max: 37.14
Current: 30.13
During the past 10 years, the highestGross Margin % of Redfin was 37.14%. The lowest was 18.48%. And the median was 27.15%.
RDFN's Gross Margin % is ranked worse than 59.38% of 1652
companies
in the Real Estate industry
Industry Median: 36.775
vs RDFN: 30.13
Redfin had a gross margin of 33.54% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Redfin was 9.60% per year.
Redfin Gross Margin % Historical Data
The historical data trend for Redfin'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.
For the Real Estate Services subindustry, Redfin'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.
Redfin's Gross Margin % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Redfin's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Redfin'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.
Redfin (NAS:RDFN) 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
Redfin had a gross margin of 33.54% 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.
Redfin Gross Margin % Related Terms
Thank you for viewing the detailed overview of Redfin's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Redfin Corp is a residential real estate broker. It pairs their own agents with the technology to create a service that is faster and costs less. The company meet customers through listings-search website and mobile application. The company uses same combination of technology and local service to originate mortgage loans and offer title and settlement services. It has four reportable segment which are real estate services, properties, rentals, and mortgage. The company generates majority of the revenue from Real estate services.
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