Nippon Building Fund (FRA:S4C) 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.
Nippon Building Fund Operating Margin % Related Terms
Nippon Building Fund Operating Margin % Historical Data
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The historical data trend for Nippon Building Fund'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:S4C vs BXP, ARE, VNO: Operating Margin % Comparison
For the REIT - Office subindustry, Nippon Building Fund'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.
Nippon Building Fund Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Nippon Building Fund's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Building Fund's Operating Margin % falls into.
Nippon Building Fund 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.
Nippon Building Fund'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.
Nippon Building Fund (FRA:S4C) has a Operating Margin % of 43.71% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Nippon Building Fund and its competitors. This is near median its historical median of 44.01. Over the past decade, Nippon Building Fund's Operating Margin % has ranged from 40.32 to 48.61. According to the industry distribution chart, Nippon Building Fund ranks #457 out of 749 companies in the REITs industry, placing it in the top 61%.
Is Nippon Building Fund's Operating Margin % too high?
Nippon Building Fund's current Operating Margin % of 43.71% is near median its 10-year median of 44.01. Over the past 10 years, this metric has ranged from a low of 40.32 to a high of 48.61. The REITs industry median Operating Margin % is 52.71. Nippon Building Fund's value of 43.71% is 17.1% below this industry median. Based on the distribution chart, Nippon Building Fund ranks #457 out of 749 companies in the REITs industry, which is below the industry midpoint. Overall, Nippon Building Fund has a GF Score™ of 56/100, reflecting its overall financial health beyond just this single metric.
How does Nippon Building Fund's Operating Margin % compare to BXP and ARE?
According to the REITs industry distribution chart, Nippon Building Fund ranks #457 out of 749 companies for Operating Margin %. This places Nippon Building Fund in the lower half of its industry. The industry median Operating Margin % is 52.71. Nippon Building Fund's value of 43.71% is 17.1% below this benchmark. Historically, Nippon Building Fund's own Operating Margin % has ranged from 40.32 to 48.61 over the past decade. While the company's 10-year median is 44.01 vs. the industry median of 52.71, Nippon Building Fund 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. Nippon Building Fund's current Operating Margin % of 43.71% is 17.1% 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 Nippon Building Fund 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. Nippon Building Fund's current Operating Margin % is 43.71%, which is near median its own 10-year median of 44.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Building Fund stock overvalued right now?
Nippon Building Fund (FRA:S4C) has a current Operating Margin % of 43.71%. The stock's GF Value™ is €590.68, compared to a current price of €680.00 — trading 15.1% above its estimated fair value. The current Operating Margin % is 43.71%, which is near median its 10-year median of 44.01 and 17.1% below the REITs industry median of 52.71. Nippon Building Fund's overall GF Score™ is 56/100 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 Nippon Building Fund (FRA:S4C), the current Operating Margin % is 43.71% 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 Nippon Building Fund (FRA:S4C) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Building Fund stock appears to be overvalued.
The current stock price of €680.00 is trading 15.1% above its estimated GF Value™ of €590.68.
Key valuation signals for FRA:S4C:
Operating Margin %: 43.71% (near median its 10-year median of 44.01)
GF Value™: €590.68 vs. price of €680.00 (15.1% above fair value)
Industry Position: 17.1% below the REITs median (#457 of 749)
No single metric tells the full story. See the FRA:S4C stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Building Fund Inc is a Japanese real estate investment trust engaged in the acquisition, ownership, and leasing of properties in the Greater Tokyo area. The company's real estate portfolio comprises of large corporate office buildings. The majority of these are located in the five wards of Tokyo's central business district. Office space located throughout the rest of Tokyo also makes up a substantial percentage of Nippon Building Fund's assets. The company derives the majority of its income in the form of rental revenue from tenants. Nippon Building Fund's customers are firms from the service, electrical equipment, and information and communications industries in terms of square footage used.
56GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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