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Douglas EmmettFRA:D8K -3.43%74 Operating Margin % is 19.50% as of Mar. 2026, which is 16% below its 10-year median of 23.11. GuruFocus rates FRA:D8K with a GF Score™ of 74/100 and a GF Value™ of €12.28. The stock has 8 warning signs investors should review. Among 734 REITs companies, Douglas Emmett ranks worse than 81.2% on this metric.
Douglas Emmett (FRA:D8K) 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.
Douglas Emmett Operating Margin % Related Terms
Douglas Emmett Operating Margin % Historical Data
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The historical data trend for Douglas Emmett'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:D8K vs ESBA, PDM, DEA: Operating Margin % Comparison
For the REIT - Office subindustry, Douglas Emmett'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.
Douglas Emmett Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Douglas Emmett's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Douglas Emmett'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.
Douglas Emmett'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.
Douglas Emmett (FRA:D8K) has a Operating Margin % of 19.50% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Douglas Emmett and its competitors. This is 16% below median its historical median of 23.11. Over the past decade, Douglas Emmett's Operating Margin % has ranged from 14.67 to 29.74. According to the industry distribution chart, Douglas Emmett ranks #596 out of 734 companies in the REITs industry, placing it in the top 81.2%.
Is Douglas Emmett's Operating Margin % too high?
Douglas Emmett's current Operating Margin % of 19.50% is 16% below median its 10-year median of 23.11. Over the past 10 years, this metric has ranged from a low of 14.67 to a high of 29.74. The REITs industry median Operating Margin % is 52.65. Douglas Emmett's value of 19.50% is 63% below this industry median. Based on the distribution chart, Douglas Emmett ranks #596 out of 734 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Douglas Emmett has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does Douglas Emmett's Operating Margin % compare to ESBA and PDM?
According to the REITs industry distribution chart, Douglas Emmett ranks #596 out of 734 companies for Operating Margin %. This places Douglas Emmett in the lower half of its industry. The industry median Operating Margin % is 52.65. Douglas Emmett's value of 19.50% is 63% below this benchmark. Historically, Douglas Emmett's own Operating Margin % has ranged from 14.67 to 29.74 over the past decade. While the company's 10-year median is 23.11 vs. the industry median of 52.65, Douglas Emmett 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 52.65, based on 734 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. Douglas Emmett's current Operating Margin % of 19.50% is 63% 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 Douglas Emmett and its competitors. For the REITs industry, the median Operating Margin % is 52.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Douglas Emmett's current Operating Margin % is 19.50%, which is 16% below median its own 10-year median of 23.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Douglas Emmett stock overvalued right now?
Douglas Emmett (FRA:D8K) has a current Operating Margin % of 19.50%. The stock's GF Value™ is €12.28, compared to a current price of €9.85 — trading 19.8% below its estimated fair value. The current Operating Margin % is 19.50%, which is 16% below median its 10-year median of 23.11 and 63% below the REITs industry median of 52.65. Douglas Emmett's overall GF Score™ is 74/100 with 8 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 Douglas Emmett (FRA:D8K), the current Operating Margin % is 19.50% 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 Douglas Emmett (FRA:D8K) Overvalued in 2026?
Based on GuruFocus' analysis, Douglas Emmett stock appears to be undervalued.
The current stock price of €9.85 is trading 19.8% below its estimated GF Value™ of €12.28.
Key valuation signals for FRA:D8K:
Operating Margin %: 19.50% (16% below median its 10-year median of 23.11)
GF Value™: €12.28 vs. price of €9.85 (19.8% below fair value)
Industry Position: 63% below the REITs median (#596 of 734)
No single metric tells the full story. See the FRA:D8K stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Douglas Emmett Inc is an integrated, self-administered, and self-managed REIT. The group focuses on owning, acquiring, developing, and managing a substantial market share of office properties and multifamily communities in neighborhoods with supply constraints, high-end executive housing, and key lifestyle amenities. Its properties are located in the Beverly Hills, Brentwood, Burbank, Century City, Olympic Corridor, Santa Monica, Sherman Oaks/Encino, Warner Center/Woodland Hills and Westwood submarkets of Los Angeles County, California, and in Honolulu, Hawaii. It has two business segments: the office segment and multifamily segment, of which Office segment derives maximum revenue.
74GF Score
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