Japan Prime Realty Investment (FRA:58JA) 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.
Japan Prime Realty Investment Operating Margin % Related Terms
Japan Prime Realty 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.
Japan Prime Realty Investment Operating Margin % Chart
FRA:58JA vs VICI, WPC: Operating Margin % Comparison
For the REIT - Diversified subindustry, Japan Prime Realty 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.
Japan Prime Realty Investment Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Japan Prime Realty Investment's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Japan Prime Realty Investment's Operating Margin % falls into.
Japan Prime Realty 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.
Japan Prime Realty Investment (FRA:58JA) has a Operating Margin % of 51.89% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Japan Prime Realty Investment and its competitors. This is near median its historical median of 48.85. Over the past decade, Japan Prime Realty Investment's Operating Margin % has ranged from 47.80 to 53.00. According to the industry distribution chart, Japan Prime Realty Investment ranks #368 out of 749 companies in the REITs industry, placing it in the top 49.1%.
Is Japan Prime Realty Investment's Operating Margin % too high?
Japan Prime Realty Investment's current Operating Margin % of 51.89% is near median its 10-year median of 48.85. Over the past 10 years, this metric has ranged from a low of 47.80 to a high of 53.00. The REITs industry median Operating Margin % is 52.71. Japan Prime Realty Investment's value of 51.89% is 1.6% below this industry median. Based on the distribution chart, Japan Prime Realty Investment ranks #368 out of 749 companies in the REITs industry, which is above the industry midpoint. Overall, Japan Prime Realty Investment has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Japan Prime Realty Investment's Operating Margin % compare to VICI and WPC?
According to the REITs industry distribution chart, Japan Prime Realty Investment ranks #368 out of 749 companies for Operating Margin %. This puts Japan Prime Realty Investment in the upper half of its industry. The industry median Operating Margin % is 52.71. Japan Prime Realty Investment's value of 51.89% is 1.6% below this benchmark. Historically, Japan Prime Realty Investment's own Operating Margin % has ranged from 47.80 to 53.00 over the past decade. While the company's 10-year median is 48.85 vs. the industry median of 52.71, Japan Prime Realty 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. Japan Prime Realty Investment's current Operating Margin % of 51.89% is 1.6% 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 Japan Prime Realty 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. Japan Prime Realty Investment's current Operating Margin % is 51.89%, which is near median its own 10-year median of 48.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Prime Realty Investment stock overvalued right now?
Based on GuruFocus' analysis, Japan Prime Realty Investment (FRA:58JA) is currently considered Fairly Valued. The stock's GF Value™ is €492.41, compared to a current price of €505.00 — trading 2.6% above its estimated fair value. The current Operating Margin % is 51.89%, which is near median its 10-year median of 48.85 and 1.6% below the REITs industry median of 52.71. Japan Prime Realty Investment's overall GF Score™ is 68/100 with 4 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 Japan Prime Realty Investment (FRA:58JA), the current Operating Margin % is 51.89% 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.
Is Japan Prime Realty Investment (FRA:58JA) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Prime Realty Investment stock appears to be overvalued.
The current stock price of €505.00 is trading 2.6% above its estimated GF Value™ of €492.41.
GuruFocus considers Japan Prime Realty Investment to be Fairly Valued.
Key valuation signals for FRA:58JA:
Operating Margin %: 51.89% (near median its 10-year median of 48.85)
GF Value™: €492.41 vs. price of €505.00 (2.6% above fair value)
Industry Position: 1.6% below the REITs median (#368 of 749)
No single metric tells the full story. See the FRA:58JA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Prime Realty Investment Business Description
Japan Prime Realty Investment Corporation, or JPR, is a Japanese real estate investment trust involved in the ownership of properties in the Greater Tokyo region. The majority of JPR's real estate portfolio is comprised of office buildings, with retail properties making up the rest of the company's holdings. The vast majority of JPR's assets are in the Tokyo metropolitan area, which are mostly concentrated in Central Tokyo. The company generates nearly all of its revenue through collecting funds from investors, investing that money into real estate properties, and then collecting rental income from those properties. Its collection of tenants is fairly evenly distributed among service, information and communication, manufacturing, finance, retail, and real estate companies.
68GF Score
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