Target Healthcare REITLSE:THRL -1.14%32 Net Margin % is 97.32% as of Dec. 2025, which is 8% above its 10-year median of 89.81. GuruFocus rates LSE:THRL with a GF Score™ of 32/100 and a GF Value™ of £0.89 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 928 REITs companies, Target Healthcare REIT ranks better than 81.03% on this metric.
The historical rank and industry rank for Target Healthcare REIT's Net Margin % or its related term are showing as below:
LSE:THRL'
s Net Margin % Range Over the Past 10 Years
Min: 83.56 Med: 89.81 Max: 338.59
Current: 93.12
LSE:THRL's Net Margin % is ranked better than 81.03% of 928
companies
in the REITs industry
Industry Median: 45.23
vs LSE:THRL: 93.12
Target Healthcare REIT (LSE:THRL) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Target Healthcare REIT Net Margin % Related Terms
Target Healthcare REIT Net 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.
LSE:THRL vs WELL, VTR, OHI: Net Margin % Comparison
For the REIT - Healthcare Facilities subindustry, Target Healthcare REIT's Net Margin %, along with its competitors' market caps and Net 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.
Target Healthcare REIT Net Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Target Healthcare REIT's Net Margin % distribution charts can be found below:
* The bar in red indicates where Target Healthcare REIT's Net 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.
Target Healthcare REIT (LSE:THRL) has a Net Margin % of 97.32% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Target Healthcare REIT and its competitors. This is near median its historical median of 89.81. Over the past decade, Target Healthcare REIT's Net Margin % has ranged from 83.56 to 338.59. According to the industry distribution chart, Target Healthcare REIT ranks #176 out of 928 companies in the REITs industry, placing it in the top 19%.
Is Target Healthcare REIT's Net Margin % too high?
Target Healthcare REIT's current Net Margin % of 97.32% is near median its 10-year median of 89.81. Over the past 10 years, this metric has ranged from a low of 83.56 to a high of 338.59. The REITs industry median Net Margin % is 45.23. Target Healthcare REIT's value of 97.32% is 115.2% above this industry median. Based on the distribution chart, Target Healthcare REIT ranks #176 out of 928 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Target Healthcare REIT has a GF Score™ of 32/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Target Healthcare REIT's Net Margin % compare to WELL and VTR?
According to the REITs industry distribution chart, Target Healthcare REIT ranks #176 out of 928 companies for Net Margin %. This places Target Healthcare REIT in the top 19% of its industry — outperforming the majority of peers. The industry median Net Margin % is 45.23. Target Healthcare REIT's value of 97.32% is 115.2% above this benchmark. Historically, Target Healthcare REIT's own Net Margin % has ranged from 83.56 to 338.59 over the past decade. While the company's 10-year median is 89.81 vs. the industry median of 45.23, Target Healthcare REIT 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 Net Margin % for a REITs company?
The median Net Margin % among REITs companies is 45.23, based on 928 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Target Healthcare REIT's current Net Margin % of 97.32% is 115.2% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Target Healthcare REIT and its competitors. For the REITs industry, the median Net Margin % is 45.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Target Healthcare REIT's current Net Margin % is 97.32%, which is near median its own 10-year median of 89.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Target Healthcare REIT stock overvalued right now?
Based on GuruFocus' analysis, Target Healthcare REIT (LSE:THRL) is currently considered Modestly Overvalued. The stock's GF Value™ is £0.89, compared to a current price of £1.04 — trading 16.9% above its estimated fair value. The current Net Margin % is 97.32%, which is near median its 10-year median of 89.81 and 115.2% above the REITs industry median of 45.23. Target Healthcare REIT's overall GF Score™ is 32/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Target Healthcare REIT (LSE:THRL), the current Net Margin % is 97.32% as of Dec. 2025. 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 Target Healthcare REIT (LSE:THRL) Overvalued in 2026?
Based on GuruFocus' analysis, Target Healthcare REIT stock appears to be overvalued.
The current stock price of £1.04 is trading 16.9% above its estimated GF Value™ of £0.89.
GuruFocus considers Target Healthcare REIT to be Modestly Overvalued.
Key valuation signals for LSE:THRL:
Net Margin %: 97.32% (near median its 10-year median of 89.81)
GF Value™: £0.89 vs. price of £1.04 (16.9% above fair value)
Industry Position: 115.2% above the REITs median (#176 of 928)
No single metric tells the full story. See the LSE:THRL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Target Healthcare REIT PLC is an investment company that acts as a long-term investor in care homes in the United Kingdom. The investment objective of the company is to provide shareholders with an attractive level of income together with the potential for capital and income growth from investing in a diversified portfolio of freehold and long-leasehold care homes, which are let to care home operators, and other healthcare assets in the United Kingdom.
32GF Score
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