Inter Residence Fundo DE Investimento Imobiliario -FII (BSP:INRD11) 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.
Inter Residence Fundo DE Investimento Imobiliario -FII Operating Margin % Related Terms
Inter Residence Fundo DE Investimento Imobiliario -FII 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.
Inter Residence Fundo DE Investimento Imobiliario -FII Operating Margin % Chart
Inter Residence Fundo DE Investimento Imobiliario -FII Annual Data
Trend
Jun20
Jun21
Jun22
Jun23
Jun24
Operating Margin %
62.41
55.74
75.13
72.99
70.73
Inter Residence Fundo DE Investimento Imobiliario -FII Semi-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.
Inter Residence Fundo DE Investimento Imobiliario -FII Operating Margin % vs REITs Industry
Inter Residence Fundo DE Investimento Imobiliario -FII 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.
Inter Residence Fundo DE Investimento Imobiliario -FII (BSP:INRD11) has a Operating Margin % of 69.95% as of Jun. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Inter Residence Fundo DE Investimento Imobiliario -FII and its competitors. This is near median its historical median of 70.73. Over the past decade, Inter Residence Fundo DE Investimento Imobiliario -FII's Operating Margin % has ranged from 55.74 to 75.13. According to the industry distribution chart, Inter Residence Fundo DE Investimento Imobiliario -FII ranks #164 out of 747 companies in the REITs industry, placing it in the top 22%.
Is Inter Residence Fundo DE Investimento Imobiliario -FII's Operating Margin % too high?
Inter Residence Fundo DE Investimento Imobiliario -FII's current Operating Margin % of 69.95% is near median its 10-year median of 70.73. Over the past 10 years, this metric has ranged from a low of 55.74 to a high of 75.13. The REITs industry median Operating Margin % is 52.63. Inter Residence Fundo DE Investimento Imobiliario -FII's value of 69.95% is 32.9% above this industry median. Based on the distribution chart, Inter Residence Fundo DE Investimento Imobiliario -FII ranks #164 out of 747 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Inter Residence Fundo DE Investimento Imobiliario -FII has a GF Score™ of 50/100, reflecting its overall financial health beyond just this single metric.
How does Inter Residence Fundo DE Investimento Imobiliario -FII's Operating Margin % compare to AVB and EQR?
According to the REITs industry distribution chart, Inter Residence Fundo DE Investimento Imobiliario -FII ranks #164 out of 747 companies for Operating Margin %. This places Inter Residence Fundo DE Investimento Imobiliario -FII in the top 22% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 52.63. Inter Residence Fundo DE Investimento Imobiliario -FII's value of 69.95% is 32.9% above this benchmark. Historically, Inter Residence Fundo DE Investimento Imobiliario -FII's own Operating Margin % has ranged from 55.74 to 75.13 over the past decade. While the company's 10-year median is 70.73 vs. the industry median of 52.63, Inter Residence Fundo DE Investimento Imobiliario -FII 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 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. Inter Residence Fundo DE Investimento Imobiliario -FII's current Operating Margin % of 69.95% is 32.9% 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 Inter Residence Fundo DE Investimento Imobiliario -FII 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. Inter Residence Fundo DE Investimento Imobiliario -FII's current Operating Margin % is 69.95%, which is near median its own 10-year median of 70.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Inter Residence Fundo DE Investimento Imobiliario -FII stock overvalued right now?
Inter Residence Fundo DE Investimento Imobiliario -FII (BSP:INRD11) has a current Operating Margin % of 69.95%. The current Operating Margin % is 69.95%, which is near median its 10-year median of 70.73 and 32.9% above the REITs industry median of 52.63. Inter Residence Fundo DE Investimento Imobiliario -FII's overall GF Score™ is 50/100 with 4 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 Inter Residence Fundo DE Investimento Imobiliario -FII (BSP:INRD11), the current Operating Margin % is 69.95% as of Jun. 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.
Inter Residence Fundo DE Investimento Imobiliario -FII Business Description
Inter Residence Fundo DE Investimento Imobiliario -FII formerly Luggo Fundo DE Investimento Imobiliario - FII is a real estate investment fund which focuses its investments in the residential construction sector.
50GF Score
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