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HealthCo Healthcare and Wellness REIT (ASX:HCW) 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.
HealthCo Healthcare and Wellness REIT Operating Margin % Related Terms
HealthCo Healthcare and Wellness 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.
HealthCo Healthcare and Wellness REIT Operating Margin % Chart
HealthCo Healthcare and Wellness REIT Annual Data
Trend
Jun22
Jun23
Jun24
Jun25
Operating Margin %
55.94
54.98
68.91
62.45
HealthCo Healthcare and Wellness REIT Semi-Annual Data
ASX:HCW vs WELL, VTR, DOC: Operating Margin % Comparison
For the REIT - Healthcare Facilities subindustry, HealthCo Healthcare and Wellness 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.
HealthCo Healthcare and Wellness REIT Operating Margin % vs REITs Industry
HealthCo Healthcare and Wellness 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.
HealthCo Healthcare and Wellness REIT (ASX:HCW) has a Operating Margin % of 75.00% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on HealthCo Healthcare and Wellness REIT and its competitors. This is 27% above median its historical median of 59.20. Over the past decade, HealthCo Healthcare and Wellness REIT's Operating Margin % has ranged from 54.98 to 68.91. According to the industry distribution chart, HealthCo Healthcare and Wellness REIT ranks #187 out of 746 companies in the REITs industry, placing it in the top 25.1%.
Is HealthCo Healthcare and Wellness REIT's Operating Margin % too high?
HealthCo Healthcare and Wellness REIT's current Operating Margin % of 75.00% is 27% above median its 10-year median of 59.20. Over the past 10 years, this metric has ranged from a low of 54.98 to a high of 68.91. The REITs industry median Operating Margin % is 52.73. HealthCo Healthcare and Wellness REIT's value of 75.00% is 42.2% above this industry median. Based on the distribution chart, HealthCo Healthcare and Wellness REIT ranks #187 out of 746 companies in the REITs industry, which is above the industry midpoint. Overall, HealthCo Healthcare and Wellness REIT has a GF Score™ of 37/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HealthCo Healthcare and Wellness REIT's Operating Margin % compare to WELL and VTR?
According to the REITs industry distribution chart, HealthCo Healthcare and Wellness REIT ranks #187 out of 746 companies for Operating Margin %. This puts HealthCo Healthcare and Wellness REIT in the upper half of its industry. The industry median Operating Margin % is 52.73. HealthCo Healthcare and Wellness REIT's value of 75.00% is 42.2% above this benchmark. Historically, HealthCo Healthcare and Wellness REIT's own Operating Margin % has ranged from 54.98 to 68.91 over the past decade. While the company's 10-year median is 59.20 vs. the industry median of 52.73, HealthCo Healthcare and Wellness 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 52.73, 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. HealthCo Healthcare and Wellness REIT's current Operating Margin % of 75.00% is 42.2% 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 HealthCo Healthcare and Wellness REIT and its competitors. For the REITs industry, the median Operating Margin % is 52.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HealthCo Healthcare and Wellness REIT's current Operating Margin % is 75.00%, which is 27% above median its own 10-year median of 59.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HealthCo Healthcare and Wellness REIT stock overvalued right now?
Based on GuruFocus' analysis, HealthCo Healthcare and Wellness REIT (ASX:HCW) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.99, compared to a current price of A$0.71 — trading 28.8% below its estimated fair value. The current Operating Margin % is 75.00%, which is 27% above median its 10-year median of 59.20 and 42.2% above the REITs industry median of 52.73. HealthCo Healthcare and Wellness REIT's overall GF Score™ is 37/100 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 HealthCo Healthcare and Wellness REIT (ASX:HCW), the current Operating Margin % is 75.00% 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 HealthCo Healthcare and Wellness REIT (ASX:HCW) Overvalued in 2026?
Based on GuruFocus' analysis, HealthCo Healthcare and Wellness REIT stock appears to be undervalued.
The current stock price of A$0.71 is trading 28.8% below its estimated GF Value™ of A$0.99.
GuruFocus considers HealthCo Healthcare and Wellness REIT to be Modestly Undervalued.
Key valuation signals for ASX:HCW:
Operating Margin %: 75.00% (27% above median its 10-year median of 59.20)
GF Value™: A$0.99 vs. price of A$0.71 (28.8% below fair value)
Industry Position: 42.2% above the REITs median (#187 of 746)
No single metric tells the full story. See the ASX:HCW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HealthCo Healthcare and Wellness REIT Business Description
HealthCo Healthcare and Wellness REIT are owning and managing a portfolio of commercial health and wellness real estate assets. It invests in high conviction and scalable real asset strategies on behalf of individuals, large institutions and super funds.
37GF Score
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