Zug Estates Holding AG (CHIX:ZUGNz) 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.
Zug Estates Holding AG Operating Margin % Related Terms
Zug Estates Holding AG Operating Margin % Historical Data
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The historical data trend for Zug Estates Holding AG'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.
Zug Estates Holding AG Operating Margin % Competitor Comparison
For the Real Estate - Diversified subindustry, Zug Estates Holding AG'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.
Zug Estates Holding AG Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Zug Estates Holding AG's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Zug Estates Holding AG's Operating Margin % falls into.
Zug Estates Holding AG 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.
Zug Estates Holding AG'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.
Zug Estates Holding AG (CHIX:ZUGNZ) has a Operating Margin % of 59.49% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Zug Estates Holding AG and its competitors. This is near median its historical median of 57.72. Over the past decade, Zug Estates Holding AG's Operating Margin % has ranged from 32.87 to 60.64. According to the industry distribution chart, Zug Estates Holding AG ranks #181 out of 1748 companies in the Real Estate industry, placing it in the top 10.4%.
Is Zug Estates Holding AG's Operating Margin % too high?
Zug Estates Holding AG's current Operating Margin % of 59.49% is near median its 10-year median of 57.72. Over the past 10 years, this metric has ranged from a low of 32.87 to a high of 60.64. The Real Estate industry median Operating Margin % is 13.22. Zug Estates Holding AG's value of 59.49% is 350% above this industry median. Based on the distribution chart, Zug Estates Holding AG ranks #181 out of 1748 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, Zug Estates Holding AG has a GF Score™ of 25/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zug Estates Holding AG's Operating Margin % compare to competitors?
According to the Real Estate industry distribution chart, Zug Estates Holding AG ranks #181 out of 1748 companies for Operating Margin %. This places Zug Estates Holding AG in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 13.22. Zug Estates Holding AG's value of 59.49% is 350% above this benchmark. Historically, Zug Estates Holding AG's own Operating Margin % has ranged from 32.87 to 60.64 over the past decade. While the company's 10-year median is 57.72 vs. the industry median of 13.22, Zug Estates Holding AG 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 13.22, based on 1,748 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. Zug Estates Holding AG's current Operating Margin % of 59.49% is 350% 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 Zug Estates Holding AG and its competitors. For the Real Estate industry, the median Operating Margin % is 13.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zug Estates Holding AG's current Operating Margin % is 59.49%, which is near median its own 10-year median of 57.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zug Estates Holding AG stock overvalued right now?
Based on GuruFocus' analysis, Zug Estates Holding AG (CHIX:ZUGNZ) is currently considered Fairly Valued. The stock's GF Value™ is CHF1,998.64, compared to a current price of CHF2,090.00 — trading 4.6% above its estimated fair value. The current Operating Margin % is 59.49%, which is near median its 10-year median of 57.72 and 350% above the Real Estate industry median of 13.22. Zug Estates Holding AG's overall GF Score™ is 25/100 with 3 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 Zug Estates Holding AG (CHIX:ZUGNZ), the current Operating Margin % is 59.49% 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 Zug Estates Holding AG (CHIX:ZUGNZ) Overvalued in 2026?
Based on GuruFocus' analysis, Zug Estates Holding AG stock appears to be overvalued.
The current stock price of CHF2,090.00 is trading 4.6% above its estimated GF Value™ of CHF1,998.64.
GuruFocus considers Zug Estates Holding AG to be Fairly Valued.
Key valuation signals for CHIX:ZUGNZ:
Operating Margin %: 59.49% (near median its 10-year median of 57.72)
GF Value™: CHF1,998.64 vs. price of CHF2,090.00 (4.6% above fair value)
Industry Position: 350% above the Real Estate median (#181 of 1748)
No single metric tells the full story. See the CHIX:ZUGNZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zug Estates Holding AG develops, markets and manages properties in the Zug region. The business activities are functioned through Real Estate and hotel and catering segments. It generates maximum revenue from the Real Estate segment. The real estate segment operates primarily in the areas of product development and management. The project development department develops and oversees its own construction projects, mainly for the Group portfolio. Its management department provides property management services for third parties and the Group portfolio.
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