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.
Dexus Convenience Retail REIT Operating Margin % Related Terms
Dexus Convenience Retail 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.
ASX:DXC vs SPG, O, KIM: Operating Margin % Comparison
For the REIT - Retail subindustry, Dexus Convenience Retail 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.
Dexus Convenience Retail REIT Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Dexus Convenience Retail REIT's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Dexus Convenience Retail REIT'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.
Dexus Convenience Retail REIT (ASX:DXC) has a Operating Margin % of 71.26% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Dexus Convenience Retail REIT and its competitors. This is 10% below median its historical median of 78.96. Over the past decade, Dexus Convenience Retail REIT's Operating Margin % has ranged from 71.89 to 89.04. According to the industry distribution chart, Dexus Convenience Retail REIT ranks #149 out of 746 companies in the REITs industry, placing it in the top 20%.
Is Dexus Convenience Retail REIT's Operating Margin % too high?
Dexus Convenience Retail REIT's current Operating Margin % of 71.26% is 10% below median its 10-year median of 78.96. Over the past 10 years, this metric has ranged from a low of 71.89 to a high of 89.04. The REITs industry median Operating Margin % is 52.63. Dexus Convenience Retail REIT's value of 71.26% is 35.4% above this industry median. Based on the distribution chart, Dexus Convenience Retail REIT ranks #149 out of 746 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Dexus Convenience Retail REIT has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dexus Convenience Retail REIT's Operating Margin % compare to SPG and O?
According to the REITs industry distribution chart, Dexus Convenience Retail REIT ranks #149 out of 746 companies for Operating Margin %. This places Dexus Convenience Retail REIT in the top 20% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 52.63. Dexus Convenience Retail REIT's value of 71.26% is 35.4% above this benchmark. Historically, Dexus Convenience Retail REIT's own Operating Margin % has ranged from 71.89 to 89.04 over the past decade. While the company's 10-year median is 78.96 vs. the industry median of 52.63, Dexus Convenience Retail 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 52.63, based on 746 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. Dexus Convenience Retail REIT's current Operating Margin % of 71.26% is 35.4% 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 Dexus Convenience Retail REIT and its competitors. For the REITs industry, the median Operating Margin % is 52.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dexus Convenience Retail REIT's current Operating Margin % is 71.26%, which is 10% below median its own 10-year median of 78.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dexus Convenience Retail REIT stock overvalued right now?
Based on GuruFocus' analysis, Dexus Convenience Retail REIT (ASX:DXC) is currently considered Fairly Valued. The stock's GF Value™ is A$2.57, compared to a current price of A$2.62 — trading 1.9% above its estimated fair value. The current Operating Margin % is 71.26%, which is 10% below median its 10-year median of 78.96 and 35.4% above the REITs industry median of 52.63. Dexus Convenience Retail REIT's overall GF Score™ is 78/100 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 Dexus Convenience Retail REIT (ASX:DXC), the current Operating Margin % is 71.26% 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 Dexus Convenience Retail REIT (ASX:DXC) Overvalued in 2026?
Based on GuruFocus' analysis, Dexus Convenience Retail REIT stock appears to be overvalued.
The current stock price of A$2.62 is trading 1.9% above its estimated GF Value™ of A$2.57.
GuruFocus considers Dexus Convenience Retail REIT to be Fairly Valued.
Key valuation signals for ASX:DXC:
Operating Margin %: 71.26% (10% below median its 10-year median of 78.96)
GF Value™: A$2.57 vs. price of A$2.62 (1.9% above fair value)
Industry Position: 35.4% above the REITs median (#149 of 746)
No single metric tells the full story. See the ASX:DXC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dexus Convenience Retail REIT Business Description
Dexus Convenience Retail REIT is an Australian real estate investment trust. The company owns a portfolio of service stations and convenience retail assets located across Australia. The company derives all income from investments in properties located in Australia. The principal investment objective of the group is to invest in convenience retail properties that provide investors with a high and consistent income distribution that maintains its real value for the life of the group.
78GF Score
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