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
Omega Healthcare Investors had a gross margin of 97.21% for the quarter that ended in Mar. 2026 => 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.
Omega Healthcare Investors Gross Margin % Related Terms
Omega Healthcare Investors Gross Margin % Historical Data
* 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.
BSP:O2HI34 vs DOC, AHR, CTRE: Gross Margin % Comparison
For the REIT - Healthcare Facilities subindustry, Omega Healthcare Investors'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.
Omega Healthcare Investors Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Omega Healthcare Investors's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Omega Healthcare Investors'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.
Omega Healthcare Investors (BSP:O2HI34) has a Gross Margin % of 97.21% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Omega Healthcare Investors and its competitors. This is near median its historical median of 98.62. Over the past decade, Omega Healthcare Investors' Gross Margin % has ranged from 98.24 to 98.85. According to the industry distribution chart, Omega Healthcare Investors ranks #35 out of 680 companies in the REITs industry, placing it in the top 5.1%.
Is Omega Healthcare Investors' Gross Margin % too high?
Omega Healthcare Investors' current Gross Margin % of 97.21% is near median its 10-year median of 98.62. Over the past 10 years, this metric has ranged from a low of 98.24 to a high of 98.85. The REITs industry median Gross Margin % is 69.61. Omega Healthcare Investors' value of 97.21% is 39.6% above this industry median. Based on the distribution chart, Omega Healthcare Investors ranks #35 out of 680 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Omega Healthcare Investors has a GF Score™ of 49/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Omega Healthcare Investors' Gross Margin % compare to DOC and AHR?
According to the REITs industry distribution chart, Omega Healthcare Investors ranks #35 out of 680 companies for Gross Margin %. This places Omega Healthcare Investors in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 69.61. Omega Healthcare Investors' value of 97.21% is 39.6% above this benchmark. Historically, Omega Healthcare Investors' own Gross Margin % has ranged from 98.24 to 98.85 over the past decade. While the company's 10-year median is 98.62 vs. the industry median of 69.61, Omega Healthcare Investors has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a REITs company?
The median Gross Margin % among REITs companies is 69.61, based on 680 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Omega Healthcare Investors's current Gross Margin % of 97.21% is 39.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Omega Healthcare Investors and its competitors. For the REITs industry, the median Gross Margin % is 69.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Omega Healthcare Investors's current Gross Margin % is 97.21%, which is near median its own 10-year median of 98.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Omega Healthcare Investors stock overvalued right now?
Based on GuruFocus' analysis, Omega Healthcare Investors (BSP:O2HI34) is currently considered Modestly Overvalued. The stock's GF Value™ is R$62.11, compared to a current price of R$77.02 — trading 24% above its estimated fair value. The current Gross Margin % is 97.21%, which is near median its 10-year median of 98.62 and 39.6% above the REITs industry median of 69.61. Omega Healthcare Investors' overall GF Score™ is 49/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Omega Healthcare Investors (BSP:O2HI34), the current Gross Margin % is 97.21% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Omega Healthcare Investors (BSP:O2HI34) Overvalued in 2026?
Based on GuruFocus' analysis, Omega Healthcare Investors stock appears to be overvalued.
The current stock price of R$77.02 is trading 24% above its estimated GF Value™ of R$62.11.
GuruFocus considers Omega Healthcare Investors to be Modestly Overvalued.
Key valuation signals for BSP:O2HI34:
Gross Margin %: 97.21% (near median its 10-year median of 98.62)
GF Value™: R$62.11 vs. price of R$77.02 (24% above fair value)
Industry Position: 39.6% above the REITs median (#35 of 680)
No single metric tells the full story. See the BSP:O2HI34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Omega Healthcare Investors Inc is a real estate investment trust that invests in healthcare-related real estate properties located in the United States (U.S.), the United Kingdom (U.K.), and Canada. The company's objective is to provide attractive returns to investors while serving as the preferred capital partner to its third-party healthcare operating companies and affiliates, as well as other third-party healthcare operators, allowing them to focus on delivering a high level of care to their resident patients. Omega's investment portfolio mainly consists of skilled nursing facilities, assisted living facilities (ALFs), including care homes in the U.K., independent living facilities, rehabilitation and acute care facilities, and continuing care retirement communities.
49GF Score
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