Prospect Logistics and Industrial Freehold and Leasehold REIT (BKK:PROSPECT) 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.
Prospect Logistics and Industrial Freehold and Leasehold REIT Operating Margin % Related Terms
Prospect Logistics and Industrial Freehold and Leasehold 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.
Prospect Logistics and Industrial Freehold and Leasehold REIT Operating Margin % Chart
Prospect Logistics and Industrial Freehold and Leasehold REIT Annual Data
* 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.
Prospect Logistics and Industrial Freehold and Leasehold REIT Operating Margin % vs REITs Industry
Prospect Logistics and Industrial Freehold and Leasehold 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.
Prospect Logistics and Industrial Freehold and Leasehold REIT (BKK:PROSPECT) has a Operating Margin % of 75.14% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Prospect Logistics and Industrial Freehold and Leasehold REIT and its competitors. This is near median its historical median of 72.83. Over the past decade, Prospect Logistics and Industrial Freehold and Leasehold REIT's Operating Margin % has ranged from 70.83 to 76.44. According to the industry distribution chart, Prospect Logistics and Industrial Freehold and Leasehold REIT ranks #137 out of 749 companies in the REITs industry, placing it in the top 18.3%.
Is Prospect Logistics and Industrial Freehold and Leasehold REIT's Operating Margin % too high?
Prospect Logistics and Industrial Freehold and Leasehold REIT's current Operating Margin % of 75.14% is near median its 10-year median of 72.83. Over the past 10 years, this metric has ranged from a low of 70.83 to a high of 76.44. The REITs industry median Operating Margin % is 52.63. Prospect Logistics and Industrial Freehold and Leasehold REIT's value of 75.14% is 42.8% above this industry median. Based on the distribution chart, Prospect Logistics and Industrial Freehold and Leasehold REIT ranks #137 out of 749 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Prospect Logistics and Industrial Freehold and Leasehold REIT has a GF Score™ of 48/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Prospect Logistics and Industrial Freehold and Leasehold REIT's Operating Margin % compare to PLD and PSA?
According to the REITs industry distribution chart, Prospect Logistics and Industrial Freehold and Leasehold REIT ranks #137 out of 749 companies for Operating Margin %. This places Prospect Logistics and Industrial Freehold and Leasehold REIT in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 52.63. Prospect Logistics and Industrial Freehold and Leasehold REIT's value of 75.14% is 42.8% above this benchmark. Historically, Prospect Logistics and Industrial Freehold and Leasehold REIT's own Operating Margin % has ranged from 70.83 to 76.44 over the past decade. While the company's 10-year median is 72.83 vs. the industry median of 52.63, Prospect Logistics and Industrial Freehold and Leasehold 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 749 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. Prospect Logistics and Industrial Freehold and Leasehold REIT's current Operating Margin % of 75.14% is 42.8% 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 Prospect Logistics and Industrial Freehold and Leasehold 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. Prospect Logistics and Industrial Freehold and Leasehold REIT's current Operating Margin % is 75.14%, which is near median its own 10-year median of 72.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prospect Logistics and Industrial Freehold and Leasehold REIT stock overvalued right now?
Based on GuruFocus' analysis, Prospect Logistics and Industrial Freehold and Leasehold REIT (BKK:PROSPECT) is currently considered Modestly Overvalued. The stock's GF Value™ is ฿8.45, compared to a current price of ฿10.20 — trading 20.7% above its estimated fair value. The current Operating Margin % is 75.14%, which is near median its 10-year median of 72.83 and 42.8% above the REITs industry median of 52.63. Prospect Logistics and Industrial Freehold and Leasehold REIT's overall GF Score™ is 48/100 with 11 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 Prospect Logistics and Industrial Freehold and Leasehold REIT (BKK:PROSPECT), the current Operating Margin % is 75.14% as of Mar. 2026. 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 Prospect Logistics and Industrial Freehold and Leasehold REIT (BKK:PROSPECT) Overvalued in 2026?
Based on GuruFocus' analysis, Prospect Logistics and Industrial Freehold and Leasehold REIT stock appears to be overvalued.
The current stock price of ฿10.20 is trading 20.7% above its estimated GF Value™ of ฿8.45.
GuruFocus considers Prospect Logistics and Industrial Freehold and Leasehold REIT to be Modestly Overvalued.
Key valuation signals for BKK:PROSPECT:
Operating Margin %: 75.14% (near median its 10-year median of 72.83)
GF Value™: ฿8.45 vs. price of ฿10.20 (20.7% above fair value)
Industry Position: 42.8% above the REITs median (#137 of 749)
No single metric tells the full story. See the BKK:PROSPECT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Prospect Logistics and Industrial Freehold and Leasehold REIT Business Description
Prospect Logistics and Industrial Freehold and Leasehold REIT is a real estate investment trust operating as a closed-end trust, and mainly invests in factory and warehouse space for rent. The company's investment portfolio consists of the following projects: Sub-leasehold rights of parts of land and buildings in the Bangkok Free Trade Zone 1 (BFTZ 1); the ownership over the land and built-to-suit factory and office building in the X44 Bangna Km.18; Leasehold right of parts of the land and ownership over parts of the buildings in Bangkok Free Trade Zone 2 (BFTZ 2); and Ownership over parts of the land and buildings in Bangkok Free Trade Zone 3 (BFTZ 3). Prospect generates primary revenue from the leasing of warehouse and factory buildings.
48GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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