American Healthcare REITAHR +1.64%32 Operating Margin % is 6.27% as of Mar. 2026, which is 3% above its 10-year median of 6.11. GuruFocus rates AHR with a GF Score™ of 32/100. The stock has 8 warning signs investors should review. Among 750 REITs companies, American Healthcare REIT ranks worse than 90.53% on this metric.
American Healthcare REIT (NYSE:AHR) Operating Margin % Explanation
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.
American Healthcare REIT Operating Margin % Related Terms
American Healthcare REIT 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.
AHR vs CTRE, DOC, HR: Operating Margin % Comparison
For the REIT - Healthcare Facilities subindustry, American Healthcare REIT'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.
American Healthcare REIT Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, American Healthcare REIT's Operating Margin % distribution charts can be found below:
* The bar in red indicates where American Healthcare REIT's Operating Margin % falls into.
American Healthcare REIT Operating Margin % Calculation
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.
American Healthcare REIT's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
American Healthcare REIT (AHR) has a Operating Margin % of 6.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on American Healthcare REIT and its competitors. This is near median its historical median of 6.11. Over the past decade, American Healthcare REIT's Operating Margin % has ranged from 2.92 to 7.77. According to the industry distribution chart, American Healthcare REIT ranks #679 out of 750 companies in the REITs industry, placing it in the top 90.5%.
Is American Healthcare REIT's Operating Margin % too high?
American Healthcare REIT's current Operating Margin % of 6.27% is near median its 10-year median of 6.11. Over the past 10 years, this metric has ranged from a low of 2.92 to a high of 7.77. The REITs industry median Operating Margin % is 52.67. American Healthcare REIT's value of 6.27% is 88.1% below this industry median. Based on the distribution chart, American Healthcare REIT ranks #679 out of 750 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, American Healthcare REIT has a GF Score™ of 32/100, reflecting its overall financial health beyond just this single metric.
How does American Healthcare REIT's Operating Margin % compare to CTRE and DOC?
According to the REITs industry distribution chart, American Healthcare REIT ranks #679 out of 750 companies for Operating Margin %. This places American Healthcare REIT in the lower half of its industry. The industry median Operating Margin % is 52.67. American Healthcare REIT's value of 6.27% is 88.1% below this benchmark. Historically, American Healthcare REIT's own Operating Margin % has ranged from 2.92 to 7.77 over the past decade. While the company's 10-year median is 6.11 vs. the industry median of 52.67, American Healthcare REIT 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 52.67, based on 750 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. American Healthcare REIT's current Operating Margin % of 6.27% is 88.1% 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 American Healthcare REIT and its competitors. For the REITs industry, the median Operating Margin % is 52.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Healthcare REIT's current Operating Margin % is 6.27%, which is near median its own 10-year median of 6.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Healthcare REIT stock overvalued right now?
American Healthcare REIT (AHR) has a current Operating Margin % of 6.27%. The current Operating Margin % is 6.27%, which is near median its 10-year median of 6.11 and 88.1% below the REITs industry median of 52.67. American Healthcare REIT's overall GF Score™ is 32/100 with 8 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 American Healthcare REIT (AHR), the current Operating Margin % is 6.27% 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.
American Healthcare REIT Inc is a healthcare-focused real estate investment trust. It owns a diversified portfolio of clinical healthcare real estate properties, focusing on medical office buildings, skilled nursing facilities, senior housing, hospitals, and other healthcare-related facilities. It has four reportable business segments: integrated senior health campuses, outpatient medical, triple-net leased properties and SHOP. It generates majority of its revenue through Integrated Senior Health Campuses segment.
32GF Score
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