Industrial & Infrastructure Fund Investment (FRA:2ES) 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.
Industrial & Infrastructure Fund Investment Operating Margin % Related Terms
Industrial & Infrastructure Fund Investment 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.
Industrial & Infrastructure Fund Investment Operating Margin % Chart
Industrial & Infrastructure Fund Investment Annual Data
FRA:2ES vs PLD, PSA, EXR: Operating Margin % Comparison
For the REIT - Industrial subindustry, Industrial & Infrastructure Fund Investment'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.
Industrial & Infrastructure Fund Investment Operating Margin % vs REITs Industry
Industrial & Infrastructure Fund Investment 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.
* 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.
Industrial & Infrastructure Fund Investment (FRA:2ES) has a Operating Margin % of 51.99% as of Jan. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Industrial & Infrastructure Fund Investment and its competitors. This is near median its historical median of 52.17. Over the past decade, Industrial & Infrastructure Fund Investment's Operating Margin % has ranged from 42.30 to 57.94. According to the industry distribution chart, Industrial & Infrastructure Fund Investment ranks #415 out of 749 companies in the REITs industry, placing it in the top 55.4%.
Is Industrial & Infrastructure Fund Investment's Operating Margin % too high?
Industrial & Infrastructure Fund Investment's current Operating Margin % of 51.99% is near median its 10-year median of 52.17. Over the past 10 years, this metric has ranged from a low of 42.30 to a high of 57.94. The REITs industry median Operating Margin % is 52.71. Industrial & Infrastructure Fund Investment's value of 51.99% is 1.4% below this industry median. Based on the distribution chart, Industrial & Infrastructure Fund Investment ranks #415 out of 749 companies in the REITs industry, which is below the industry midpoint. Overall, Industrial & Infrastructure Fund Investment has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does Industrial & Infrastructure Fund Investment's Operating Margin % compare to PLD and PSA?
According to the REITs industry distribution chart, Industrial & Infrastructure Fund Investment ranks #415 out of 749 companies for Operating Margin %. This places Industrial & Infrastructure Fund Investment in the lower half of its industry. The industry median Operating Margin % is 52.71. Industrial & Infrastructure Fund Investment's value of 51.99% is 1.4% below this benchmark. Historically, Industrial & Infrastructure Fund Investment's own Operating Margin % has ranged from 42.30 to 57.94 over the past decade. While the company's 10-year median is 52.17 vs. the industry median of 52.71, Industrial & Infrastructure Fund Investment 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. Industrial & Infrastructure Fund Investment's current Operating Margin % of 51.99% is 1.4% 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 Industrial & Infrastructure Fund Investment 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. Industrial & Infrastructure Fund Investment's current Operating Margin % is 51.99%, which is near median its own 10-year median of 52.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Industrial & Infrastructure Fund Investment stock overvalued right now?
Industrial & Infrastructure Fund Investment (FRA:2ES) has a current Operating Margin % of 51.99%. The stock's GF Value™ is €759.39, compared to a current price of €770.00 — trading 1.4% above its estimated fair value. The current Operating Margin % is 51.99%, which is near median its 10-year median of 52.17 and 1.4% below the REITs industry median of 52.71. Industrial & Infrastructure Fund Investment's overall GF Score™ is 76/100 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 Industrial & Infrastructure Fund Investment (FRA:2ES), the current Operating Margin % is 51.99% as of Jan. 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 Industrial & Infrastructure Fund Investment (FRA:2ES) Overvalued in 2026?
Based on GuruFocus' analysis, Industrial & Infrastructure Fund Investment stock appears to be overvalued.
The current stock price of €770.00 is trading 1.4% above its estimated GF Value™ of €759.39.
Key valuation signals for FRA:2ES:
Operating Margin %: 51.99% (near median its 10-year median of 52.17)
GF Value™: €759.39 vs. price of €770.00 (1.4% above fair value)
Industry Position: 1.4% below the REITs median (#415 of 749)
No single metric tells the full story. See the FRA:2ES stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Industrial & Infrastructure Fund Investment Business Description
Industrial & Infrastructure Fund Investment Corp operates as a J-REIT specializing in industrial properties. The company focuses on industrial properties including logistic facilities, manufacturing and R&D facilities, and infrastructures.
76GF Score
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