Growthpoint Properties Australia (OTCPK:GRWPF) 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.
Growthpoint Properties Australia Operating Margin % Related Terms
Growthpoint Properties Australia Operating Margin % Historical Data
* 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.
Growthpoint Properties Australia Operating Margin % Chart
GRWPF vs BXP, ARE, VNO: Operating Margin % Comparison
For the REIT - Office subindustry, Growthpoint Properties Australia'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.
Growthpoint Properties Australia Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Growthpoint Properties Australia's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Growthpoint Properties Australia's Operating Margin % falls into.
Growthpoint Properties Australia 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.
* 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.
Growthpoint Properties Australia (GRWPF) has a Operating Margin % of 66.96% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Growthpoint Properties Australia and its competitors. This is 13% below median its historical median of 77.31. Over the past decade, Growthpoint Properties Australia's Operating Margin % has ranged from 66.04 to 82.42. According to the industry distribution chart, Growthpoint Properties Australia ranks #213 out of 750 companies in the REITs industry, placing it in the top 28.4%.
Is Growthpoint Properties Australia's Operating Margin % too high?
Growthpoint Properties Australia's current Operating Margin % of 66.96% is 13% below median its 10-year median of 77.31. Over the past 10 years, this metric has ranged from a low of 66.04 to a high of 82.42. The REITs industry median Operating Margin % is 52.67. Growthpoint Properties Australia's value of 66.96% is 27.1% above this industry median. Based on the distribution chart, Growthpoint Properties Australia ranks #213 out of 750 companies in the REITs industry, which is above the industry midpoint. Overall, Growthpoint Properties Australia has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does Growthpoint Properties Australia's Operating Margin % compare to BXP and ARE?
According to the REITs industry distribution chart, Growthpoint Properties Australia ranks #213 out of 750 companies for Operating Margin %. This puts Growthpoint Properties Australia in the upper half of its industry. The industry median Operating Margin % is 52.67. Growthpoint Properties Australia's value of 66.96% is 27.1% above this benchmark. Historically, Growthpoint Properties Australia's own Operating Margin % has ranged from 66.04 to 82.42 over the past decade. While the company's 10-year median is 77.31 vs. the industry median of 52.67, Growthpoint Properties Australia 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. Growthpoint Properties Australia's current Operating Margin % of 66.96% is 27.1% 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 Growthpoint Properties Australia 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. Growthpoint Properties Australia's current Operating Margin % is 66.96%, which is 13% below median its own 10-year median of 77.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Growthpoint Properties Australia stock overvalued right now?
Growthpoint Properties Australia (GRWPF) has a current Operating Margin % of 66.96%. The stock's GF Value™ is $1.51, compared to a current price of $1.54 — trading 2% above its estimated fair value. The current Operating Margin % is 66.96%, which is 13% below median its 10-year median of 77.31 and 27.1% above the REITs industry median of 52.67. Growthpoint Properties Australia's overall GF Score™ is 69/100 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 Growthpoint Properties Australia (GRWPF), the current Operating Margin % is 66.96% 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 Growthpoint Properties Australia (GRWPF) Overvalued in 2026?
Based on GuruFocus' analysis, Growthpoint Properties Australia stock appears to be overvalued.
The current stock price of $1.54 is trading 2% above its estimated GF Value™ of $1.51.
Key valuation signals for GRWPF:
Operating Margin %: 66.96% (13% below median its 10-year median of 77.31)
GF Value™: $1.51 vs. price of $1.54 (2% above fair value)
Industry Position: 27.1% above the REITs median (#213 of 750)
No single metric tells the full story. See the GRWPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Growthpoint Properties Australia Business Description
Growthpoint Properties Australia is an internally managed real estate investment trust. The REIT operates a portfolio of office and industrial assets, with an earnings split of roughly 65%/35% between the two sectors. Vast majority of Growthpoint's offices are located on the eastern seaboard, predominantly in city fringe and metropolitan locations. The industrial portfolio is concentrated, with nearly half the income from the supermarket behemoth Woolworths. Growthpoint also manages a small property funds management platform, with over AUD 1 billion assets under management. Growthpoint Properties Australia is majority owned by South African property giant Growthpoint Properties, which is listed on the Johannesburg Stock Exchange.
69GF Score
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