Dream Homes & DevelopmentDREM Operating Margin % is -60.15% as of Dec. 2025. The stock has 4 warning signs investors should review. Among 91 Homebuilding & Construction companies, Dream Homes & Development ranks better than 64.84% on this metric.
The historical rank and industry rank for Dream Homes & Development's Operating Margin % or its related term are showing as below:
DREM'
s Operating Margin % Range Over the Past 10 Years
Min: -6.6 Med: 0.71 Max: 30.16
Current: 10.96
DREM's Operating Margin % is ranked better than 64.84% of 91
companies
in the Homebuilding & Construction industry
Industry Median: 7.76
vs DREM: 10.96
Dream Homes & Development (OTCPK:DREM) 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.
Dream Homes & Development Operating Margin % Related Terms
Dream Homes & Development 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.
Dream Homes & Development Operating Margin % Chart
DREM vs BDCC, DHI, PHM: Operating Margin % Comparison
For the Residential Construction subindustry, Dream Homes & Development'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.
Dream Homes & Development Operating Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Dream Homes & Development's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Dream Homes & Development's Operating Margin % falls into.
Dream Homes & Development 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.
Dream Homes & Development'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.
Dream Homes & Development (DREM) has a Operating Margin % of -60.15% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Dream Homes & Development and its competitors. According to the industry distribution chart, Dream Homes & Development ranks #32 out of 91 companies in the Homebuilding & Construction industry, placing it in the top 35.2%.
Is Dream Homes & Development's Operating Margin % too high?
Dream Homes & Development's current Operating Margin % is -60.15%. Based on the distribution chart, Dream Homes & Development ranks #32 out of 91 companies in the Homebuilding & Construction industry, which is above the industry midpoint.
How does Dream Homes & Development's Operating Margin % compare to BDCC and DHI?
According to the Homebuilding & Construction industry distribution chart, Dream Homes & Development ranks #32 out of 91 companies for Operating Margin %. This puts Dream Homes & Development in the upper half of its industry. The industry median Operating Margin % is 7.76. 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 Homebuilding & Construction company?
The median Operating Margin % among Homebuilding & Construction companies is 7.76, based on 91 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. 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 Dream Homes & Development and its competitors. For the Homebuilding & Construction industry, the median Operating Margin % is 7.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dream Homes & Development's current Operating Margin % is -60.15%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dream Homes & Development stock overvalued right now?
Based on GuruFocus' analysis, Dream Homes & Development (DREM) is currently considered Significantly Undervalued. The stock's GF Value™ is $0.03, compared to a current price of $0.01 — trading 55.7% below its estimated fair value. The current Operating Margin % is -60.15%. 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 Dream Homes & Development (DREM), the current Operating Margin % is -60.15% 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.
Dream Homes & Development Corp is a regional builder and developer of new single and multi-family homes and subdivisions, as well as a market leader in real estate development. Operations include custom homes, Build to Lease, Build for Sale and Sale of Improved Lots to national builders.
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