EZ TEC Empreendimentos e Participacoes (BSP:EZTC3) 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.
EZ TEC Empreendimentos e Participacoes Operating Margin % Related Terms
EZ TEC Empreendimentos e Participacoes 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.
EZ TEC Empreendimentos e Participacoes Operating Margin % Chart
EZ TEC Empreendimentos e Participacoes Annual Data
EZ TEC Empreendimentos e Participacoes Operating Margin % Competitor Comparison
For the Real Estate - Development subindustry, EZ TEC Empreendimentos e Participacoes'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.
EZ TEC Empreendimentos e Participacoes Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, EZ TEC Empreendimentos e Participacoes's Operating Margin % distribution charts can be found below:
* The bar in red indicates where EZ TEC Empreendimentos e Participacoes's Operating Margin % falls into.
EZ TEC Empreendimentos e Participacoes 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.
EZ TEC Empreendimentos e Participacoes (BSP:EZTC3) has a Operating Margin % of 15.13% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on EZ TEC Empreendimentos e Participacoes and its competitors. This is 24% below median its historical median of 19.91. According to the industry distribution chart, EZ TEC Empreendimentos e Participacoes ranks #576 out of 1743 companies in the Real Estate industry, placing it in the top 33%.
Is EZ TEC Empreendimentos e Participacoes' Operating Margin % too high?
EZ TEC Empreendimentos e Participacoes' current Operating Margin % of 15.13% is 24% below median its 10-year median of 19.91. The Real Estate industry median Operating Margin % is 13.37. EZ TEC Empreendimentos e Participacoes' value of 15.13% is 13.2% above this industry median. Based on the distribution chart, EZ TEC Empreendimentos e Participacoes ranks #576 out of 1743 companies in the Real Estate industry, which is above the industry midpoint. Overall, EZ TEC Empreendimentos e Participacoes has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does EZ TEC Empreendimentos e Participacoes' Operating Margin % compare to competitors?
According to the Real Estate industry distribution chart, EZ TEC Empreendimentos e Participacoes ranks #576 out of 1743 companies for Operating Margin %. This puts EZ TEC Empreendimentos e Participacoes in the upper half of its industry. The industry median Operating Margin % is 13.37. EZ TEC Empreendimentos e Participacoes' value of 15.13% is 13.2% above this benchmark. While the company's 10-year median is 19.91 vs. the industry median of 13.37, EZ TEC Empreendimentos e Participacoes 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.37, based on 1,743 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. EZ TEC Empreendimentos e Participacoes's current Operating Margin % of 15.13% is 13.2% 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 EZ TEC Empreendimentos e Participacoes and its competitors. For the Real Estate industry, the median Operating Margin % is 13.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EZ TEC Empreendimentos e Participacoes's current Operating Margin % is 15.13%, which is 24% below median its own 10-year median of 19.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EZ TEC Empreendimentos e Participacoes stock overvalued right now?
Based on GuruFocus' analysis, EZ TEC Empreendimentos e Participacoes (BSP:EZTC3) is currently considered Modestly Undervalued. The stock's GF Value™ is R$14.56, compared to a current price of R$13.15 — trading 9.7% below its estimated fair value. The current Operating Margin % is 15.13%, which is 24% below median its 10-year median of 19.91 and 13.2% above the Real Estate industry median of 13.37. EZ TEC Empreendimentos e Participacoes' overall GF Score™ is 89/100 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 EZ TEC Empreendimentos e Participacoes (BSP:EZTC3), the current Operating Margin % is 15.13% 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 EZ TEC Empreendimentos e Participacoes (BSP:EZTC3) Overvalued in 2026?
Based on GuruFocus' analysis, EZ TEC Empreendimentos e Participacoes stock appears to be undervalued.
The current stock price of R$13.15 is trading 9.7% below its estimated GF Value™ of R$14.56.
GuruFocus considers EZ TEC Empreendimentos e Participacoes to be Modestly Undervalued.
Key valuation signals for BSP:EZTC3:
Operating Margin %: 15.13% (24% below median its 10-year median of 19.91)
GF Value™: R$14.56 vs. price of R$13.15 (9.7% below fair value)
Industry Position: 13.2% above the Real Estate median (#576 of 1743)
No single metric tells the full story. See the BSP:EZTC3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EZ TEC Empreendimentos e Participacoes Business Description
EZ TEC Empreendimentos e Participacoes SA is a real estate development company that operates out of Brazil. The company and its subsidiaries engage in the development & sale of real estate, the management & lease of its own properties, land allotment, construction of condominiums, and services related to projects. The company defines its operations to include two revenue generating segments: commercial projects and residential projects. A majority of revenue is derived from the residential project segment, while a smaller portion is derived from the commercial projects segment. The company earns majority of its revenue in Brazil.
89GF Score
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