LTC PropertiesFRA:LTP +0.36%84 Operating Margin % is 37.99% as of Mar. 2026, which is 36% below its 10-year median of 59.43. GuruFocus rates FRA:LTP with a GF Score™ of 84/100 and a GF Value™ of €42.49 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 749 REITs companies, LTC Properties ranks worse than 63.15% 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.
LTC Properties Operating Margin % Related Terms
LTC Properties Operating Margin % Historical Data
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The historical data trend for LTC Properties'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:LTP vs DHC, SILA, MPT: Operating Margin % Comparison
For the REIT - Healthcare Facilities subindustry, LTC Properties'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.
LTC Properties Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, LTC Properties's Operating Margin % distribution charts can be found below:
* The bar in red indicates where LTC Properties'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.
LTC Properties'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.
LTC Properties (FRA:LTP) has a Operating Margin % of 37.99% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on LTC Properties and its competitors. This is 36% below median its historical median of 59.43. Over the past decade, LTC Properties' Operating Margin % has ranged from 43.32 to 67.32. According to the industry distribution chart, LTC Properties ranks #473 out of 749 companies in the REITs industry, placing it in the top 63.2%.
Is LTC Properties' Operating Margin % too high?
LTC Properties' current Operating Margin % of 37.99% is 36% below median its 10-year median of 59.43. Over the past 10 years, this metric has ranged from a low of 43.32 to a high of 67.32. The REITs industry median Operating Margin % is 52.71. LTC Properties' value of 37.99% is 27.9% below this industry median. Based on the distribution chart, LTC Properties ranks #473 out of 749 companies in the REITs industry, which is below the industry midpoint. Overall, LTC Properties has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LTC Properties' Operating Margin % compare to DHC and SILA?
According to the REITs industry distribution chart, LTC Properties ranks #473 out of 749 companies for Operating Margin %. This places LTC Properties in the lower half of its industry. The industry median Operating Margin % is 52.71. LTC Properties' value of 37.99% is 27.9% below this benchmark. Historically, LTC Properties' own Operating Margin % has ranged from 43.32 to 67.32 over the past decade. While the company's 10-year median is 59.43 vs. the industry median of 52.71, LTC Properties 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. LTC Properties's current Operating Margin % of 37.99% is 27.9% 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 LTC Properties 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. LTC Properties's current Operating Margin % is 37.99%, which is 36% below median its own 10-year median of 59.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LTC Properties stock overvalued right now?
Based on GuruFocus' analysis, LTC Properties (FRA:LTP) is currently considered Modestly Undervalued. The stock's GF Value™ is €42.49, compared to a current price of €33.90 — trading 20.2% below its estimated fair value. The current Operating Margin % is 37.99%, which is 36% below median its 10-year median of 59.43 and 27.9% below the REITs industry median of 52.71. LTC Properties' overall GF Score™ is 84/100 with 6 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 LTC Properties (FRA:LTP), the current Operating Margin % is 37.99% 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 LTC Properties (FRA:LTP) Overvalued in 2026?
Based on GuruFocus' analysis, LTC Properties stock appears to be undervalued.
The current stock price of €33.90 is trading 20.2% below its estimated GF Value™ of €42.49.
GuruFocus considers LTC Properties to be Modestly Undervalued.
Key valuation signals for FRA:LTP:
Operating Margin %: 37.99% (36% below median its 10-year median of 59.43)
GF Value™: €42.49 vs. price of €33.90 (20.2% below fair value)
Industry Position: 27.9% below the REITs median (#473 of 749)
No single metric tells the full story. See the FRA:LTP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LTC Properties Inc is a real estate investment trust. It invests in seniors housing and health care properties, mainly through ownership, sale-leasebacks, mortgage financing, joint ventures, construction financing, and structured finance solutions, including preferred equity, bridge, and mezzanine lending. The company's investment portfolio comprises several properties located throughout the USA, the majority of which are seniors housing and skilled nursing properties. The firm conducts and manages its business as two operating segments: Real Estate Investments, which generates maximum revenue, and SHOP.
84GF Score
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