Farmland PartnersFRA:0FA +2.10%69 Operating Margin % is 35.45% as of Mar. 2026, which is 20% below its 10-year median of 44.13. GuruFocus rates FRA:0FA with a GF Score™ of 69/100 and a GF Value™ of €9.22 (Fairly Valued). The stock has 5 warning signs investors should review. Among 750 REITs companies, Farmland Partners ranks worse than 62.8% 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.
Farmland Partners Operating Margin % Related Terms
Farmland Partners Operating Margin % Historical Data
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The historical data trend for Farmland Partners'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.
FRA:0FA vs LAND, NLCP, SELF: Operating Margin % Comparison
For the REIT - Specialty subindustry, Farmland Partners'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.
Farmland Partners Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Farmland Partners's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Farmland Partners'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.
Farmland Partners'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.
Farmland Partners (FRA:0FA) has a Operating Margin % of 35.45% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Farmland Partners and its competitors. This is 20% below median its historical median of 44.13. Over the past decade, Farmland Partners' Operating Margin % has ranged from 32.60 to 58.56. According to the industry distribution chart, Farmland Partners ranks #471 out of 750 companies in the REITs industry, placing it in the top 62.8%.
Is Farmland Partners' Operating Margin % too high?
Farmland Partners' current Operating Margin % of 35.45% is 20% below median its 10-year median of 44.13. Over the past 10 years, this metric has ranged from a low of 32.60 to a high of 58.56. The REITs industry median Operating Margin % is 52.67. Farmland Partners' value of 35.45% is 32.7% below this industry median. Based on the distribution chart, Farmland Partners ranks #471 out of 750 companies in the REITs industry, which is below the industry midpoint. Overall, Farmland Partners has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Farmland Partners' Operating Margin % compare to LAND and NLCP?
According to the REITs industry distribution chart, Farmland Partners ranks #471 out of 750 companies for Operating Margin %. This places Farmland Partners in the lower half of its industry. The industry median Operating Margin % is 52.67. Farmland Partners' value of 35.45% is 32.7% below this benchmark. Historically, Farmland Partners' own Operating Margin % has ranged from 32.60 to 58.56 over the past decade. While the company's 10-year median is 44.13 vs. the industry median of 52.67, Farmland Partners 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 52.67, based on 750 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. Farmland Partners's current Operating Margin % of 35.45% is 32.7% 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 Farmland Partners and its competitors. For the REITs industry, the median Operating Margin % is 52.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Farmland Partners's current Operating Margin % is 35.45%, which is 20% below median its own 10-year median of 44.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Farmland Partners stock overvalued right now?
Based on GuruFocus' analysis, Farmland Partners (FRA:0FA) is currently considered Fairly Valued. The stock's GF Value™ is €9.22, compared to a current price of €8.49 — trading 7.9% below its estimated fair value. The current Operating Margin % is 35.45%, which is 20% below median its 10-year median of 44.13 and 32.7% below the REITs industry median of 52.67. Farmland Partners' overall GF Score™ is 69/100 with 5 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 Farmland Partners (FRA:0FA), the current Operating Margin % is 35.45% 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 Farmland Partners (FRA:0FA) Overvalued in 2026?
Based on GuruFocus' analysis, Farmland Partners stock appears to be undervalued.
The current stock price of €8.49 is trading 7.9% below its estimated GF Value™ of €9.22.
GuruFocus considers Farmland Partners to be Fairly Valued.
Key valuation signals for FRA:0FA:
Operating Margin %: 35.45% (20% below median its 10-year median of 44.13)
GF Value™: €9.22 vs. price of €8.49 (7.9% below fair value)
Industry Position: 32.7% below the REITs median (#471 of 750)
No single metric tells the full story. See the FRA:0FA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Farmland Partners Inc owns and seeks to acquire high-quality farmland throughout North America. The company is an internally managed real estate company which owns and contracts farmland and storage facilities located across the United States. Majority of the properties in its portfolio are used to grow primary crops, such as corn, soybeans, wheat, rice and cotton, and rest to produce specialty crops, such as almonds, pictachios, citrus, avacados, strawberies, and edible beans. The company generates its revenues through the rent it receives from its tenants.
69GF Score
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