CTO Realty GrowthCTO +2.84%73 Operating Margin % is 24.22% as of Mar. 2026, which is 13% above its 10-year median of 21.47. GuruFocus rates CTO with a GF Score™ of 73/100 and a GF Value™ of $18.50 (Modestly Overvalued). The stock has 12 warning signs investors should review. Among 749 REITs companies, CTO Realty Growth ranks worse than 79.57% on this metric.
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.
CTO Realty Growth Operating Margin % Related Terms
CTO Realty Growth Operating Margin % Historical Data
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The historical data trend for CTO Realty Growth'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.
CTO vs GOOD, JBGS, AHRT: Operating Margin % Comparison
For the REIT - Diversified subindustry, CTO Realty Growth'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.
CTO Realty Growth Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, CTO Realty Growth's Operating Margin % distribution charts can be found below:
* The bar in red indicates where CTO Realty Growth's Operating Margin % falls into.
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.
CTO Realty Growth'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.
CTO Realty Growth (CTO) has a Operating Margin % of 24.22% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on CTO Realty Growth and its competitors. This is 13% above median its historical median of 21.47. Over the past decade, CTO Realty Growth's Operating Margin % has ranged from 8.01 to 41.59. According to the industry distribution chart, CTO Realty Growth ranks #596 out of 749 companies in the REITs industry, placing it in the top 79.6%.
Is CTO Realty Growth's Operating Margin % too high?
CTO Realty Growth's current Operating Margin % of 24.22% is 13% above median its 10-year median of 21.47. Over the past 10 years, this metric has ranged from a low of 8.01 to a high of 41.59. The REITs industry median Operating Margin % is 52.71. CTO Realty Growth's value of 24.22% is 54.1% below this industry median. Based on the distribution chart, CTO Realty Growth ranks #596 out of 749 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, CTO Realty Growth has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does CTO Realty Growth's Operating Margin % compare to GOOD and JBGS?
According to the REITs industry distribution chart, CTO Realty Growth ranks #596 out of 749 companies for Operating Margin %. This places CTO Realty Growth in the lower half of its industry. The industry median Operating Margin % is 52.71. CTO Realty Growth's value of 24.22% is 54.1% below this benchmark. Historically, CTO Realty Growth's own Operating Margin % has ranged from 8.01 to 41.59 over the past decade. While the company's 10-year median is 21.47 vs. the industry median of 52.71, CTO Realty Growth 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 52.71, 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. CTO Realty Growth's current Operating Margin % of 24.22% is 54.1% 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 CTO Realty Growth and its competitors. For the REITs industry, the median Operating Margin % is 52.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CTO Realty Growth's current Operating Margin % is 24.22%, which is 13% above median its own 10-year median of 21.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CTO Realty Growth stock overvalued right now?
Based on GuruFocus' analysis, CTO Realty Growth (CTO) is currently considered Modestly Overvalued. The stock's GF Value™ is $18.50, compared to a current price of $21.74 — trading 17.5% above its estimated fair value. The current Operating Margin % is 24.22%, which is 13% above median its 10-year median of 21.47 and 54.1% below the REITs industry median of 52.71. CTO Realty Growth's overall GF Score™ is 73/100 with 12 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 CTO Realty Growth (CTO), the current Operating Margin % is 24.22% 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 CTO Realty Growth (CTO) Overvalued in 2026?
Based on GuruFocus' analysis, CTO Realty Growth stock appears to be overvalued.
The current stock price of $21.74 is trading 17.5% above its estimated GF Value™ of $18.50.
GuruFocus considers CTO Realty Growth to be Modestly Overvalued.
Key valuation signals for CTO:
Operating Margin %: 24.22% (13% above median its 10-year median of 21.47)
GF Value™: $18.50 vs. price of $21.74 (17.5% above fair value)
Industry Position: 54.1% below the REITs median (#596 of 749)
No single metric tells the full story. See the CTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CTO Realty Growth Inc is a real estate investment trust company, that owns income properties in diversified markets in the United States. The company operates in four primary business segments: Income properties, management services, commercial loans and investments, and real estate operations. It derives maximum revenue from Income Properties.
73GF Score
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