Covivio HotelsFRA:9FM 80 Operating Margin % is 33.38% as of Dec. 2025, which is 36% below its 10-year median of 52.52. GuruFocus rates FRA:9FM with a GF Score™ of 80/100 and a GF Value™ of €26.10. The stock has 4 warning signs investors should review. Among 746 REITs companies, Covivio Hotels ranks worse than 69.97% 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.
Covivio Hotels Operating Margin % Related Terms
Covivio Hotels Operating Margin % Historical Data
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The historical data trend for Covivio Hotels'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:9FM vs HST, RHP, APLE: Operating Margin % Comparison
For the REIT - Hotel & Motel subindustry, Covivio Hotels'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.
Covivio Hotels Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Covivio Hotels's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Covivio Hotels'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.
Covivio Hotels'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.
Covivio Hotels (FRA:9FM) has a Operating Margin % of 33.38% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Covivio Hotels and its competitors. This is 36% below median its historical median of 52.52. Over the past decade, Covivio Hotels' Operating Margin % has ranged from 36.40 to 91.62. According to the industry distribution chart, Covivio Hotels ranks #522 out of 746 companies in the REITs industry, placing it in the top 70%.
Is Covivio Hotels' Operating Margin % too high?
Covivio Hotels' current Operating Margin % of 33.38% is 36% below median its 10-year median of 52.52. Over the past 10 years, this metric has ranged from a low of 36.40 to a high of 91.62. The REITs industry median Operating Margin % is 52.63. Covivio Hotels' value of 33.38% is 36.6% below this industry median. Based on the distribution chart, Covivio Hotels ranks #522 out of 746 companies in the REITs industry, which is below the industry midpoint. Overall, Covivio Hotels has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Covivio Hotels' Operating Margin % compare to HST and RHP?
According to the REITs industry distribution chart, Covivio Hotels ranks #522 out of 746 companies for Operating Margin %. This places Covivio Hotels in the lower half of its industry. The industry median Operating Margin % is 52.63. Covivio Hotels' value of 33.38% is 36.6% below this benchmark. Historically, Covivio Hotels' own Operating Margin % has ranged from 36.40 to 91.62 over the past decade. While the company's 10-year median is 52.52 vs. the industry median of 52.63, Covivio Hotels 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 52.63, based on 746 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. Covivio Hotels's current Operating Margin % of 33.38% is 36.6% 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 Covivio Hotels and its competitors. For the REITs industry, the median Operating Margin % is 52.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Covivio Hotels's current Operating Margin % is 33.38%, which is 36% below median its own 10-year median of 52.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Covivio Hotels stock overvalued right now?
Covivio Hotels (FRA:9FM) has a current Operating Margin % of 33.38%. The stock's GF Value™ is €26.10, compared to a current price of €22.00 — trading 15.7% below its estimated fair value. The current Operating Margin % is 33.38%, which is 36% below median its 10-year median of 52.52 and 36.6% below the REITs industry median of 52.63. Covivio Hotels' overall GF Score™ is 80/100 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 Covivio Hotels (FRA:9FM), the current Operating Margin % is 33.38% 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 Covivio Hotels (FRA:9FM) Overvalued in 2026?
Based on GuruFocus' analysis, Covivio Hotels stock appears to be undervalued.
The current stock price of €22.00 is trading 15.7% below its estimated GF Value™ of €26.10.
Key valuation signals for FRA:9FM:
Operating Margin %: 33.38% (36% below median its 10-year median of 52.52)
GF Value™: €26.10 vs. price of €22.00 (15.7% below fair value)
Industry Position: 36.6% below the REITs median (#522 of 746)
No single metric tells the full story. See the FRA:9FM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Covivio Hotels is engaged in the real estate sector. The company functions as a real estate investment trust, with special emphasis in the holding and management of real estate assets particularly in the hotel sector. Its investment portfolio includes hotels, massage therapy institutes, clinics, garden centers and leisure villages located in Europe.
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