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EastGroup PropertiesEGP -0.07%95 Operating Margin % is 40.76% as of Jun. 2026, which is 12% above its 10-year median of 36.50. GuruFocus rates EGP with a GF Score™ of 95/100 and a GF Value™ of $194.89 (Fairly Valued). The stock has 7 warning signs investors should review. Among 731 REITs companies, EastGroup Properties ranks worse than 65.8% 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.
EastGroup Properties Operating Margin % Related Terms
EastGroup Properties Operating Margin % Historical Data
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The historical data trend for EastGroup Properties'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.
EGP vs CUBE, LINE, FR: Operating Margin % Comparison
For the REIT - Industrial subindustry, EastGroup Properties'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.
EastGroup Properties Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, EastGroup Properties's Operating Margin % distribution charts can be found below:
* The bar in red indicates where EastGroup Properties'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.
EastGroup Properties'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.
EastGroup Properties (EGP) has a Operating Margin % of 40.76% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on EastGroup Properties and its competitors. This is 12% above median its historical median of 36.50. Over the past decade, EastGroup Properties' Operating Margin % has ranged from 34.59 to 40.54. According to the industry distribution chart, EastGroup Properties ranks #481 out of 731 companies in the REITs industry, placing it in the top 65.8%.
Is EastGroup Properties' Operating Margin % too high?
EastGroup Properties' current Operating Margin % of 40.76% is 12% above median its 10-year median of 36.50. Over the past 10 years, this metric has ranged from a low of 34.59 to a high of 40.54. The REITs industry median Operating Margin % is 52.71. EastGroup Properties' value of 40.76% is 22.7% below this industry median. Based on the distribution chart, EastGroup Properties ranks #481 out of 731 companies in the REITs industry, which is below the industry midpoint. Overall, EastGroup Properties has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does EastGroup Properties' Operating Margin % compare to CUBE and LINE?
According to the REITs industry distribution chart, EastGroup Properties ranks #481 out of 731 companies for Operating Margin %. This places EastGroup Properties in the lower half of its industry. The industry median Operating Margin % is 52.71. EastGroup Properties' value of 40.76% is 22.7% below this benchmark. Historically, EastGroup Properties' own Operating Margin % has ranged from 34.59 to 40.54 over the past decade. While the company's 10-year median is 36.50 vs. the industry median of 52.71, EastGroup Properties 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 731 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. EastGroup Properties's current Operating Margin % of 40.76% is 22.7% 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 EastGroup Properties 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. EastGroup Properties's current Operating Margin % is 40.76%, which is 12% above median its own 10-year median of 36.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EastGroup Properties stock overvalued right now?
Based on GuruFocus' analysis, EastGroup Properties (EGP) is currently considered Fairly Valued. The stock's GF Value™ is $194.89, compared to a current price of $201.00 — trading 3.1% above its estimated fair value. The current Operating Margin % is 40.76%, which is 12% above median its 10-year median of 36.50 and 22.7% below the REITs industry median of 52.71. EastGroup Properties' overall GF Score™ is 95/100 with 7 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 EastGroup Properties (EGP), the current Operating Margin % is 40.76% as of Jun. 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 EastGroup Properties (EGP) Overvalued in 2026?
Based on GuruFocus' analysis, EastGroup Properties stock appears to be overvalued.
The current stock price of $201.00 is trading 3.1% above its estimated GF Value™ of $194.89.
GuruFocus considers EastGroup Properties to be Fairly Valued.
Key valuation signals for EGP:
Operating Margin %: 40.76% (12% above median its 10-year median of 36.50)
GF Value™: $194.89 vs. price of $201.00 (3.1% above fair value)
Industry Position: 22.7% below the REITs median (#481 of 731)
No single metric tells the full story. See the EGP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EastGroup Properties Inc is an equity real estate investment trust. It is engaged in the development, acquisition, and operation of industrial properties in Sunbelt markets throughout the United States, predominantly in the states of Florida, Texas, Arizona, California, and North Carolina. The company manages a portfolio of industrial properties. The vast majority of these properties are multi-tenant business distribution buildings that provide large warehousing and office space for customers. The group has one reportable segment, which is industrial properties. The company derives its revenue in the form of rental income.
95GF Score
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