ESR-REITFRA:UZ00 +0.26%62 Operating Margin % is 66.28% as of Dec. 2025, which is 4% above its 10-year median of 63.72. GuruFocus rates FRA:UZ00 with a GF Score™ of 62/100 and a GF Value™ of €1.87 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 750 REITs companies, ESR-REIT ranks better than 73.2% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. ESR-REIT's Operating Income for the
six
months ended in Dec. 2025 was €97.8 Mil. ESR-REIT's Revenue for the
six
months ended in Dec. 2025 was €147.6 Mil. Therefore, ESR-REIT's Operating Margin % for the quarter that ended in Dec. 2025 was 66.28%.
Good Sign:
ESR-REIT operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for ESR-REIT's Operating Margin % or its related term are showing as below:
FRA:UZ00'
s Operating Margin % Range Over the Past 10 Years
Min: 61.29 Med: 63.72 Max: 67.35
Current: 66.98
FRA:UZ00's Operating Margin % is ranked better than 73.2% of 750
companies
in the REITs industry
Industry Median: 52.67
vs FRA:UZ00: 66.98
ESR-REIT's 5-Year Average Operating Margin % Growth Rate was 1.10% per year.
ESR-REIT's Operating Income for the
six
months ended in Dec. 2025 was €97.8 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was €199.8 Mil.
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.
ESR-REIT Operating Margin % Related Terms
ESR-REIT Operating Margin % Historical Data
* Premium members only.
The historical data trend for ESR-REIT'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:UZ00 vs PLD, PSA, EXR: Operating Margin % Comparison
For the REIT - Industrial subindustry, ESR-REIT'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.
ESR-REIT Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, ESR-REIT's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ESR-REIT'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.
ESR-REIT'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.
ESR-REIT (FRA:UZ00) has a Operating Margin % of 66.28% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on ESR-REIT and its competitors. This is near median its historical median of 63.72. Over the past decade, ESR-REIT's Operating Margin % has ranged from 61.29 to 67.35. According to the industry distribution chart, ESR-REIT ranks #201 out of 750 companies in the REITs industry, placing it in the top 26.8%.
Is ESR-REIT's Operating Margin % too high?
ESR-REIT's current Operating Margin % of 66.28% is near median its 10-year median of 63.72. Over the past 10 years, this metric has ranged from a low of 61.29 to a high of 67.35. The REITs industry median Operating Margin % is 52.67. ESR-REIT's value of 66.28% is 25.8% above this industry median. Based on the distribution chart, ESR-REIT ranks #201 out of 750 companies in the REITs industry, which is above the industry midpoint. Overall, ESR-REIT has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ESR-REIT's Operating Margin % compare to PLD and PSA?
According to the REITs industry distribution chart, ESR-REIT ranks #201 out of 750 companies for Operating Margin %. This puts ESR-REIT in the upper half of its industry. The industry median Operating Margin % is 52.67. ESR-REIT's value of 66.28% is 25.8% above this benchmark. Historically, ESR-REIT's own Operating Margin % has ranged from 61.29 to 67.35 over the past decade. While the company's 10-year median is 63.72 vs. the industry median of 52.67, ESR-REIT has consistently been above 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 52.67, based on 750 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. ESR-REIT's current Operating Margin % of 66.28% is 25.8% above 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 ESR-REIT and its competitors. For the REITs industry, the median Operating Margin % is 52.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ESR-REIT's current Operating Margin % is 66.28%, which is near median its own 10-year median of 63.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ESR-REIT stock overvalued right now?
Based on GuruFocus' analysis, ESR-REIT (FRA:UZ00) is currently considered Modestly Undervalued. The stock's GF Value™ is €1.87, compared to a current price of €1.53 — trading 18% below its estimated fair value. The current Operating Margin % is 66.28%, which is near median its 10-year median of 63.72 and 25.8% above the REITs industry median of 52.67. ESR-REIT's overall GF Score™ is 62/100 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 ESR-REIT (FRA:UZ00), the current Operating Margin % is 66.28% 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 ESR-REIT (FRA:UZ00) Overvalued in 2026?
Based on GuruFocus' analysis, ESR-REIT stock appears to be undervalued.
The current stock price of €1.53 is trading 18% below its estimated GF Value™ of €1.87.
GuruFocus considers ESR-REIT to be Modestly Undervalued.
Key valuation signals for FRA:UZ00:
Operating Margin %: 66.28% (near median its 10-year median of 63.72)
GF Value™: €1.87 vs. price of €1.53 (18% below fair value)
Industry Position: 25.8% above the REITs median (#201 of 750)
No single metric tells the full story. See the FRA:UZ00 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ESR-REIT is a real estate investment trust with a portfolio of industrial assets. It is a new-economy, future-ready Asia-Pacific S-REIT. The REIT invests in quality, income-producing industrial properties in key gateway markets. Its portfolio includes the SG Portfolio, the AUS Portfolio, the JP Portfolio, and other investments. It operates in Singapore, Australia, and Japan.
62GF Score
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