Goodman GroupASX:GMG +1.13%84 Operating Margin % is 34.28% as of Dec. 2025, which is 41% above its 10-year median of 24.27. GuruFocus rates ASX:GMG with a GF Score™ of 84/100 and a GF Value™ of A$44.21 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 750 REITs companies, Goodman Group ranks worse than 74% on this metric.
Goodman Group (ASX:GMG) 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.
Goodman Group Operating Margin % Related Terms
Goodman Group Operating Margin % Historical Data
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The historical data trend for Goodman Group's Operating Margin % can be seen below:
* 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:GMG vs VICI, WPC, BNL: Operating Margin % Comparison
For the REIT - Diversified subindustry, Goodman Group'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.
Goodman Group Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Goodman Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Goodman Group'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.
Goodman Group's Operating Margin % for the fiscal year that ended in Jun. 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.
Goodman Group (ASX:GMG) has a Operating Margin % of 34.28% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Goodman Group and its competitors. This is 41% above median its historical median of 24.27. Over the past decade, Goodman Group's Operating Margin % has ranged from 10.13 to 40.78. According to the industry distribution chart, Goodman Group ranks #555 out of 750 companies in the REITs industry, placing it in the top 74%.
Is Goodman Group's Operating Margin % too high?
Goodman Group's current Operating Margin % of 34.28% is 41% above median its 10-year median of 24.27. Over the past 10 years, this metric has ranged from a low of 10.13 to a high of 40.78. The REITs industry median Operating Margin % is 52.67. Goodman Group's value of 34.28% is 34.9% below this industry median. Based on the distribution chart, Goodman Group ranks #555 out of 750 companies in the REITs industry, which is below the industry midpoint. Overall, Goodman Group has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Goodman Group's Operating Margin % compare to VICI and WPC?
According to the REITs industry distribution chart, Goodman Group ranks #555 out of 750 companies for Operating Margin %. This places Goodman Group in the lower half of its industry. The industry median Operating Margin % is 52.67. Goodman Group's value of 34.28% is 34.9% below this benchmark. Historically, Goodman Group's own Operating Margin % has ranged from 10.13 to 40.78 over the past decade. While the company's 10-year median is 24.27 vs. the industry median of 52.67, Goodman Group 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. Goodman Group's current Operating Margin % of 34.28% is 34.9% 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 Goodman Group 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. Goodman Group's current Operating Margin % is 34.28%, which is 41% above median its own 10-year median of 24.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Goodman Group stock overvalued right now?
Based on GuruFocus' analysis, Goodman Group (ASX:GMG) is currently considered Modestly Undervalued. The stock's GF Value™ is A$44.21, compared to a current price of A$32.19 — trading 27.2% below its estimated fair value. The current Operating Margin % is 34.28%, which is 41% above median its 10-year median of 24.27 and 34.9% below the REITs industry median of 52.67. Goodman Group's overall GF Score™ is 84/100 with 6 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 Goodman Group (ASX:GMG), the current Operating Margin % is 34.28% 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 Goodman Group (ASX:GMG) Overvalued in 2026?
Based on GuruFocus' analysis, Goodman Group stock appears to be undervalued.
The current stock price of A$32.19 is trading 27.2% below its estimated GF Value™ of A$44.21.
GuruFocus considers Goodman Group to be Modestly Undervalued.
Key valuation signals for ASX:GMG:
Operating Margin %: 34.28% (41% above median its 10-year median of 24.27)
GF Value™: A$44.21 vs. price of A$32.19 (27.2% below fair value)
Industry Position: 34.9% below the REITs median (#555 of 750)
No single metric tells the full story. See the ASX:GMG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Goodman Group owns, manages, and develops industrial properties in 13 countries, historically in Australia but increasingly worldwide. Around half of its operating earnings come from development, a third from management, and the rest from property investment. Most developments are undertaken on behalf of third parties or fund investors. Goodman earns fees in return for development management services. Completed projects are either sold or reside in one of Goodman's funds or partnerships. Goodman typically retains ownership stakes in the investment vehicles and continues to manage the sites after completion, collecting investment management base fees, performance fees, property services fees, and a share of rental income.
84GF Score
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