The historical rank and industry rank for Tri Pointe Homes's Gross Margin % or its related term are showing as below:
TPH'
s Gross Margin % Range Over the Past 10 Years
Min: 19.78 Med: 22.68 Max: 26.69
Current: 23.59
During the past 13 years, the highestGross Margin % of Tri Pointe Homes was 26.69%. The lowest was 19.78%. And the median was 22.68%.
TPH's Gross Margin % is ranked better than 56.99% of 93
companies
in the Homebuilding & Construction industry
Industry Median: 22.21
vs TPH: 23.59
Tri Pointe Homes had a gross margin of 24.06% for the quarter that ended in Mar. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Tri Pointe Homes was 2.70% per year.
Tri Pointe Homes Gross Margin % Historical Data
The historical data trend for Tri Pointe Homes'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 Tri Pointe Homes's Gross Margin %
For the Residential Construction subindustry, Tri Pointe Homes'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.
Tri Pointe Homes's Gross Margin % Distribution in the Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Tri Pointe Homes's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tri Pointe Homes'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.
Tri Pointe Homes (NYSE:TPH) 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
Tri Pointe Homes had a gross margin of 24.06% for the quarter that ended in Mar. 2025 => 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.
Tri Pointe Homes Gross Margin % Related Terms
Thank you for viewing the detailed overview of Tri Pointe Homes's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Tri Pointe Homes Inc is an American construction company that focuses on residential construction. The company is engaged in the design, construction, and sale of single-family attached and detached homes in different states across the United States. Its operations are organized into two principal businesses: homebuilding. which generates key revenue, and financial services. The homebuilding business has three reportable operating segments, based on the geographical layout of the markets, and includes West region, Central region, and East region. The company's financial services operation is comprised of its Tri Pointe Connect mortgage financing operations, Tri Pointe Assurance title and escrow services operations, and Tri Pointe Advantage property and casualty insurance agency operations.
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