HomeCo Daily Needs REITASX:HDN +0.38%59 Operating Margin % is 68.86% as of Dec. 2025, which is 2% above its 10-year median of 67.23. GuruFocus rates ASX:HDN with a GF Score™ of 59/100 and a GF Value™ of A$1.20 (Fairly Valued). The stock has 8 warning signs investors should review. Among 750 REITs companies, HomeCo Daily Needs REIT ranks better than 75.47% on this metric.
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.
HomeCo Daily Needs REIT Operating Margin % Related Terms
HomeCo Daily Needs REIT Operating Margin % Historical Data
* Premium members only.
The historical data trend for HomeCo Daily Needs REIT'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:HDN vs SPG, O, KIM: Operating Margin % Comparison
For the REIT - Retail subindustry, HomeCo Daily Needs 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.
HomeCo Daily Needs REIT Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, HomeCo Daily Needs REIT's Operating Margin % distribution charts can be found below:
* The bar in red indicates where HomeCo Daily Needs 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.
HomeCo Daily Needs REIT'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.
HomeCo Daily Needs REIT (ASX:HDN) has a Operating Margin % of 68.86% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on HomeCo Daily Needs REIT and its competitors. This is near median its historical median of 67.23. Over the past decade, HomeCo Daily Needs REIT's Operating Margin % has ranged from 66.69 to 68.43. According to the industry distribution chart, HomeCo Daily Needs REIT ranks #184 out of 750 companies in the REITs industry, placing it in the top 24.5%.
Is HomeCo Daily Needs REIT's Operating Margin % too high?
HomeCo Daily Needs REIT's current Operating Margin % of 68.86% is near median its 10-year median of 67.23. Over the past 10 years, this metric has ranged from a low of 66.69 to a high of 68.43. The REITs industry median Operating Margin % is 52.67. HomeCo Daily Needs REIT's value of 68.86% is 30.7% above this industry median. Based on the distribution chart, HomeCo Daily Needs REIT ranks #184 out of 750 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, HomeCo Daily Needs REIT has a GF Score™ of 59/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does HomeCo Daily Needs REIT's Operating Margin % compare to SPG and O?
According to the REITs industry distribution chart, HomeCo Daily Needs REIT ranks #184 out of 750 companies for Operating Margin %. This places HomeCo Daily Needs REIT in the top 25% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 52.67. HomeCo Daily Needs REIT's value of 68.86% is 30.7% above this benchmark. Historically, HomeCo Daily Needs REIT's own Operating Margin % has ranged from 66.69 to 68.43 over the past decade. While the company's 10-year median is 67.23 vs. the industry median of 52.67, HomeCo Daily Needs 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 52.67, 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. HomeCo Daily Needs REIT's current Operating Margin % of 68.86% is 30.7% 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 HomeCo Daily Needs 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. HomeCo Daily Needs REIT's current Operating Margin % is 68.86%, which is near median its own 10-year median of 67.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HomeCo Daily Needs REIT stock overvalued right now?
Based on GuruFocus' analysis, HomeCo Daily Needs REIT (ASX:HDN) is currently considered Fairly Valued. The stock's GF Value™ is A$1.20, compared to a current price of A$1.31 — trading 9.2% above its estimated fair value. The current Operating Margin % is 68.86%, which is near median its 10-year median of 67.23 and 30.7% above the REITs industry median of 52.67. HomeCo Daily Needs REIT's overall GF Score™ is 59/100 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 HomeCo Daily Needs REIT (ASX:HDN), the current Operating Margin % is 68.86% 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 HomeCo Daily Needs REIT (ASX:HDN) Overvalued in 2026?
Based on GuruFocus' analysis, HomeCo Daily Needs REIT stock appears to be overvalued.
The current stock price of A$1.31 is trading 9.2% above its estimated GF Value™ of A$1.20.
GuruFocus considers HomeCo Daily Needs REIT to be Fairly Valued.
Key valuation signals for ASX:HDN:
Operating Margin %: 68.86% (near median its 10-year median of 67.23)
GF Value™: A$1.20 vs. price of A$1.31 (9.2% above fair value)
Industry Position: 30.7% above the REITs median (#184 of 750)
No single metric tells the full story. See the ASX:HDN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HomeCo Daily Needs REIT is a listed investment trust established and managed by HMC Capital, an ASX-listed alternative asset manager. HMC receives fees from HomeCo in exchange for property, investment, and development management services, and retains a minority interest in the REIT. HomeCo focuses on convenience-based assets that offer everyday goods and services, such as supermarkets, liquor stores, pharmacies, childcare, government and general services. Its portfolio also has a significant weighting to large format retail—a subsector that specializes in furniture, electrical appliances, and other homemaker offerings. Majority of HomeCo's leases has fixed annual rate increases, and a smaller proportion are inflation-linked, with the rest commensurate with supermarket turnover.
59GF Score
Get the complete analysis for ASX:HDN
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:HDN has been successfully added to your 
