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Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Advance Residence Investment Operating Margin % Related Terms
Advance Residence Investment Operating 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.
ADZZF vs AVB, EQR, ESS: Operating Margin % Comparison
For the REIT - Residential subindustry, Advance Residence Investment's Operating Margin %, along with its competitors' market caps and Operating 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.
Advance Residence Investment Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Advance Residence Investment's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Advance Residence Investment's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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.
Advance Residence Investment (ADZZF) has a Operating Margin % of 49.66% as of Jan. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Advance Residence Investment and its competitors. This is near median its historical median of 49.62. Over the past decade, Advance Residence Investment's Operating Margin % has ranged from 47.22 to 50.59. According to the industry distribution chart, Advance Residence Investment ranks #417 out of 742 companies in the REITs industry, placing it in the top 56.2%.
Is Advance Residence Investment's Operating Margin % too high?
Advance Residence Investment's current Operating Margin % of 49.66% is near median its 10-year median of 49.62. Over the past 10 years, this metric has ranged from a low of 47.22 to a high of 50.59. The REITs industry median Operating Margin % is 52.74. Advance Residence Investment's value of 49.66% is 5.8% below this industry median. Based on the distribution chart, Advance Residence Investment ranks #417 out of 742 companies in the REITs industry, which is below the industry midpoint. Overall, Advance Residence Investment has a GF Score™ of 58/100, reflecting its overall financial health beyond just this single metric.
How does Advance Residence Investment's Operating Margin % compare to AVB and EQR?
According to the REITs industry distribution chart, Advance Residence Investment ranks #417 out of 742 companies for Operating Margin %. This places Advance Residence Investment in the lower half of its industry. The industry median Operating Margin % is 52.74. Advance Residence Investment's value of 49.66% is 5.8% below this benchmark. Historically, Advance Residence Investment's own Operating Margin % has ranged from 47.22 to 50.59 over the past decade. While the company's 10-year median is 49.62 vs. the industry median of 52.74, Advance Residence Investment has consistently been below 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 Operating Margin % for a REITs company?
The median Operating Margin % among REITs companies is 52.74, based on 742 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Advance Residence Investment's current Operating Margin % of 49.66% is 5.8% below 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Advance Residence Investment and its competitors. For the REITs industry, the median Operating Margin % is 52.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advance Residence Investment's current Operating Margin % is 49.66%, which is near median its own 10-year median of 49.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advance Residence Investment stock overvalued right now?
Advance Residence Investment (ADZZF) has a current Operating Margin % of 49.66%. The stock's GF Value™ is $874.68, compared to a current price of $1,050.00 — trading 20% above its estimated fair value. The current Operating Margin % is 49.66%, which is near median its 10-year median of 49.62 and 5.8% below the REITs industry median of 52.74. Advance Residence Investment's overall GF Score™ is 58/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Advance Residence Investment (ADZZF), the current Operating Margin % is 49.66% as of Jan. 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 Advance Residence Investment (ADZZF) Overvalued in 2026?
Based on GuruFocus' analysis, Advance Residence Investment stock appears to be overvalued.
The current stock price of $1,050.00 is trading 20% above its estimated GF Value™ of $874.68.
Key valuation signals for ADZZF:
Operating Margin %: 49.66% (near median its 10-year median of 49.62)
GF Value™: $874.68 vs. price of $1,050.00 (20% above fair value)
Industry Position: 5.8% below the REITs median (#417 of 742)
No single metric tells the full story. See the ADZZF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advance Residence Investment Corp is a real estate investment trust that engages in the property leasing business. It mainly invests in rental housing in central Tokyo, the greater Tokyo area, and other nearby cities. Its portfolio includes properties such as RESIDIA TOWER Meguro-Fudomae, Pacific Royal Court Minato Mirai Ocean Tower, Park Tower Shibaura Bayward Urban Wing, RESIDIA Daikanyama-Sarugakucho, and several other RESIDIA-branded buildings.
58GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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