Reef Casino TrustASX:RCT +3.33%74 Operating Margin % is 48.94% as of Dec. 2025, which is 10% above its 10-year median of 44.36. GuruFocus rates ASX:RCT with a GF Score™ of 74/100 and a GF Value™ of A$3.01 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 843 Travel & Leisure companies, Reef Casino Trust ranks better than 97.27% 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.
Reef Casino Trust Operating Margin % Related Terms
Reef Casino Trust Operating Margin % Historical Data
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The historical data trend for Reef Casino Trust'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:RCT vs LVS, MGM, WYNN: Operating Margin % Comparison
For the Resorts & Casinos subindustry, Reef Casino Trust'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.
Reef Casino Trust Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Reef Casino Trust's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Reef Casino Trust'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.
Reef Casino Trust's Operating Margin % for the fiscal year that ended in Dec. 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.
Reef Casino Trust (ASX:RCT) has a Operating Margin % of 48.94% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Reef Casino Trust and its competitors. This is 10% above median its historical median of 44.36. Over the past decade, Reef Casino Trust's Operating Margin % has ranged from 31.75 to 59.00. According to the industry distribution chart, Reef Casino Trust ranks #23 out of 843 companies in the Travel & Leisure industry, placing it in the top 2.7%.
Is Reef Casino Trust's Operating Margin % too high?
Reef Casino Trust's current Operating Margin % of 48.94% is 10% above median its 10-year median of 44.36. Over the past 10 years, this metric has ranged from a low of 31.75 to a high of 59.00. The Travel & Leisure industry median Operating Margin % is 8.07. Reef Casino Trust's value of 48.94% is 506.4% above this industry median. Based on the distribution chart, Reef Casino Trust ranks #23 out of 843 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Reef Casino Trust has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Reef Casino Trust's Operating Margin % compare to LVS and MGM?
According to the Travel & Leisure industry distribution chart, Reef Casino Trust ranks #23 out of 843 companies for Operating Margin %. This places Reef Casino Trust in the top 3% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 8.07. Reef Casino Trust's value of 48.94% is 506.4% above this benchmark. Historically, Reef Casino Trust's own Operating Margin % has ranged from 31.75 to 59.00 over the past decade. While the company's 10-year median is 44.36 vs. the industry median of 8.07, Reef Casino Trust 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 Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.07, based on 843 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. Reef Casino Trust's current Operating Margin % of 48.94% is 506.4% 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 Reef Casino Trust and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reef Casino Trust's current Operating Margin % is 48.94%, which is 10% above median its own 10-year median of 44.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reef Casino Trust stock overvalued right now?
Based on GuruFocus' analysis, Reef Casino Trust (ASX:RCT) is currently considered Modestly Overvalued. The stock's GF Value™ is A$3.01, compared to a current price of A$3.72 — trading 23.6% above its estimated fair value. The current Operating Margin % is 48.94%, which is 10% above median its 10-year median of 44.36 and 506.4% above the Travel & Leisure industry median of 8.07. Reef Casino Trust's overall GF Score™ is 74/100 with 9 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 Reef Casino Trust (ASX:RCT), the current Operating Margin % is 48.94% 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 Reef Casino Trust (ASX:RCT) Overvalued in 2026?
Based on GuruFocus' analysis, Reef Casino Trust stock appears to be overvalued.
The current stock price of A$3.72 is trading 23.6% above its estimated GF Value™ of A$3.01.
GuruFocus considers Reef Casino Trust to be Modestly Overvalued.
Key valuation signals for ASX:RCT:
Operating Margin %: 48.94% (10% above median its 10-year median of 44.36)
GF Value™: A$3.01 vs. price of A$3.72 (23.6% above fair value)
Industry Position: 506.4% above the Travel & Leisure median (#23 of 843)
No single metric tells the full story. See the ASX:RCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reef Casino Trust is engaged in the operation of the Reef Hotel-Casino Complex located in Cairns, Queensland, Australia. The company derives revenue from the casino, which includes electronic gaming and table games, and the hotel, which includes room accommodation and food and beverage, and others. The majority of the revenue is generated from the rental income received from the casino operations. The company operates in two segments, which includes Casino operations and Hotel segment.
74GF Score
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