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.
Hedge Officeome Fundo De Investimento Imobiliario Operating Margin % Related Terms
Hedge Officeome Fundo De Investimento Imobiliario 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.
Hedge Officeome Fundo De Investimento Imobiliario Operating Margin % Chart
Hedge Officeome Fundo De Investimento Imobiliario Annual Data
BSP:HOFC11 vs BXP, ARE, VNO: Operating Margin % Comparison
For the REIT - Office subindustry, Hedge Officeome Fundo De Investimento Imobiliario'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.
Hedge Officeome Fundo De Investimento Imobiliario Operating Margin % vs REITs Industry
Hedge Officeome Fundo De Investimento Imobiliario 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.
Hedge Officeome Fundo De Investimento Imobiliario (BSP:HOFC11) has a Operating Margin % of 24.56% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Hedge Officeome Fundo De Investimento Imobiliario and its competitors. This is 65% below median its historical median of 69.49. Over the past decade, Hedge Officeome Fundo De Investimento Imobiliario's Operating Margin % has ranged from 24.56 to 86.12. According to the industry distribution chart, Hedge Officeome Fundo De Investimento Imobiliario ranks #578 out of 747 companies in the REITs industry, placing it in the top 77.4%.
Is Hedge Officeome Fundo De Investimento Imobiliario's Operating Margin % too high?
Hedge Officeome Fundo De Investimento Imobiliario's current Operating Margin % of 24.56% is 65% below median its 10-year median of 69.49. Over the past 10 years, this metric has ranged from a low of 24.56 to a high of 86.12. The REITs industry median Operating Margin % is 52.63. Hedge Officeome Fundo De Investimento Imobiliario's value of 24.56% is 53.3% below this industry median. Based on the distribution chart, Hedge Officeome Fundo De Investimento Imobiliario ranks #578 out of 747 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Hedge Officeome Fundo De Investimento Imobiliario has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hedge Officeome Fundo De Investimento Imobiliario's Operating Margin % compare to BXP and ARE?
According to the REITs industry distribution chart, Hedge Officeome Fundo De Investimento Imobiliario ranks #578 out of 747 companies for Operating Margin %. This places Hedge Officeome Fundo De Investimento Imobiliario in the lower half of its industry. The industry median Operating Margin % is 52.63. Hedge Officeome Fundo De Investimento Imobiliario's value of 24.56% is 53.3% below this benchmark. Historically, Hedge Officeome Fundo De Investimento Imobiliario's own Operating Margin % has ranged from 24.56 to 86.12 over the past decade. While the company's 10-year median is 69.49 vs. the industry median of 52.63, Hedge Officeome Fundo De Investimento Imobiliario has consistently been below 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 747 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. Hedge Officeome Fundo De Investimento Imobiliario's current Operating Margin % of 24.56% is 53.3% below 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 Hedge Officeome Fundo De Investimento Imobiliario 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. Hedge Officeome Fundo De Investimento Imobiliario's current Operating Margin % is 24.56%, which is 65% below median its own 10-year median of 69.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hedge Officeome Fundo De Investimento Imobiliario stock overvalued right now?
Based on GuruFocus' analysis, Hedge Officeome Fundo De Investimento Imobiliario (BSP:HOFC11) is currently considered Significantly Overvalued. The stock's GF Value™ is R$22.43, compared to a current price of R$33.75 — trading 50.5% above its estimated fair value. The current Operating Margin % is 24.56%, which is 65% below median its 10-year median of 69.49 and 53.3% below the REITs industry median of 52.63. Hedge Officeome Fundo De Investimento Imobiliario's overall GF Score™ is 55/100 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 Hedge Officeome Fundo De Investimento Imobiliario (BSP:HOFC11), the current Operating Margin % is 24.56% 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 Hedge Officeome Fundo De Investimento Imobiliario (BSP:HOFC11) Overvalued in 2026?
Based on GuruFocus' analysis, Hedge Officeome Fundo De Investimento Imobiliario stock appears to be overvalued.
The current stock price of R$33.75 is trading 50.5% above its estimated GF Value™ of R$22.43.
GuruFocus considers Hedge Officeome Fundo De Investimento Imobiliario to be Significantly Overvalued.
Key valuation signals for BSP:HOFC11:
Operating Margin %: 24.56% (65% below median its 10-year median of 69.49)
GF Value™: R$22.43 vs. price of R$33.75 (50.5% above fair value)
Industry Position: 53.3% below the REITs median (#578 of 747)
No single metric tells the full story. See the BSP:HOFC11 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hedge Officeome Fundo De Investimento Imobiliario Business Description
Hedge Office Income Fundo De Investimento Imobiliario operates as a corporate Real Estate Fund .The objective of the Fund is to obtain income and capital gains to be obtained through the exploration of a or more real estate projects, aimed at the office segment including slabs and corporate buildings being certain that in such office developments there may be certain properties intended for commercial, retail activities.
55GF Score
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