Charter Hall Social Infrastructure REIT (ASX:CQE) 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.
Charter Hall Social Infrastructure REIT Operating Margin % Related Terms
Charter Hall Social Infrastructure 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.
Charter Hall Social Infrastructure REIT Operating Margin % Chart
Charter Hall Social Infrastructure REIT Annual Data
ASX:CQE vs EQIX, AMT, DLR: Operating Margin % Comparison
For the REIT - Specialty subindustry, Charter Hall Social Infrastructure 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.
Charter Hall Social Infrastructure REIT Operating Margin % vs REITs Industry
Charter Hall Social Infrastructure 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.
* 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.
Charter Hall Social Infrastructure REIT (ASX:CQE) has a Operating Margin % of 54.84% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Charter Hall Social Infrastructure REIT and its competitors. This is 23% below median its historical median of 70.96. Over the past decade, Charter Hall Social Infrastructure REIT's Operating Margin % has ranged from 63.33 to 73.46. According to the industry distribution chart, Charter Hall Social Infrastructure REIT ranks #239 out of 749 companies in the REITs industry, placing it in the top 31.9%.
Is Charter Hall Social Infrastructure REIT's Operating Margin % too high?
Charter Hall Social Infrastructure REIT's current Operating Margin % of 54.84% is 23% below median its 10-year median of 70.96. Over the past 10 years, this metric has ranged from a low of 63.33 to a high of 73.46. The REITs industry median Operating Margin % is 52.71. Charter Hall Social Infrastructure REIT's value of 54.84% is 4% above this industry median. Based on the distribution chart, Charter Hall Social Infrastructure REIT ranks #239 out of 749 companies in the REITs industry, which is above the industry midpoint. Overall, Charter Hall Social Infrastructure REIT has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Charter Hall Social Infrastructure REIT's Operating Margin % compare to EQIX and AMT?
According to the REITs industry distribution chart, Charter Hall Social Infrastructure REIT ranks #239 out of 749 companies for Operating Margin %. This puts Charter Hall Social Infrastructure REIT in the upper half of its industry. The industry median Operating Margin % is 52.71. Charter Hall Social Infrastructure REIT's value of 54.84% is 4% above this benchmark. Historically, Charter Hall Social Infrastructure REIT's own Operating Margin % has ranged from 63.33 to 73.46 over the past decade. While the company's 10-year median is 70.96 vs. the industry median of 52.71, Charter Hall Social Infrastructure 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 Operating Margin % for a REITs company?
The median Operating Margin % among REITs companies is 52.71, based on 749 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. Charter Hall Social Infrastructure REIT's current Operating Margin % of 54.84% is 4% 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 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 Charter Hall Social Infrastructure REIT and its competitors. For the REITs industry, the median Operating Margin % is 52.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Charter Hall Social Infrastructure REIT's current Operating Margin % is 54.84%, which is 23% below median its own 10-year median of 70.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Charter Hall Social Infrastructure REIT stock overvalued right now?
Based on GuruFocus' analysis, Charter Hall Social Infrastructure REIT (ASX:CQE) is currently considered Fairly Valued. The stock's GF Value™ is A$3.02, compared to a current price of A$2.76 — trading 8.6% below its estimated fair value. The current Operating Margin % is 54.84%, which is 23% below median its 10-year median of 70.96 and 4% above the REITs industry median of 52.71. Charter Hall Social Infrastructure REIT's overall GF Score™ is 77/100 with 7 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 Charter Hall Social Infrastructure REIT (ASX:CQE), the current Operating Margin % is 54.84% 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 Charter Hall Social Infrastructure REIT (ASX:CQE) Overvalued in 2026?
Based on GuruFocus' analysis, Charter Hall Social Infrastructure REIT stock appears to be undervalued.
The current stock price of A$2.76 is trading 8.6% below its estimated GF Value™ of A$3.02.
GuruFocus considers Charter Hall Social Infrastructure REIT to be Fairly Valued.
Key valuation signals for ASX:CQE:
Operating Margin %: 54.84% (23% below median its 10-year median of 70.96)
GF Value™: A$3.02 vs. price of A$2.76 (8.6% below fair value)
Industry Position: 4% above the REITs median (#239 of 749)
No single metric tells the full story. See the ASX:CQE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Charter Hall Social Infrastructure REIT Business Description
Charter Hall Social Infrastructure REIT leases properties to tenants offering essential community services. The property portfolio mostly consists of childcare centers, and several life sciences and healthcare, higher education, government services and transportation assets. Typically, Charter Hall Social locks in long-term leases with their tenants, baking in inflation-linked or fixed rental escalations annually. Leases are also subject to market reviews once every five years, which allows the landlord to re-calibrate rents to prevailing market rates. Most leases are "triple net", meaning tenants pay for all statutory and operating outgoings, such as land tax, repairs and maintenance. The REIT is externally managed by Charter Hall Group.
77GF Score
Get the complete analysis for ASX:CQE
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:CQE has been successfully added to your 
