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.
InnSuites Hospitality Trust Operating Margin % Related Terms
InnSuites Hospitality Trust 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.
IHT vs AHT, HST, RHP: Operating Margin % Comparison
For the REIT - Hotel & Motel subindustry, InnSuites Hospitality Trust'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.
InnSuites Hospitality Trust Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, InnSuites Hospitality Trust's Operating Margin % distribution charts can be found below:
* The bar in red indicates where InnSuites Hospitality Trust'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.
InnSuites Hospitality Trust's Operating Margin % for the fiscal year that ended in Jan. 2026 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.
InnSuites Hospitality Trust (IHT) has a Operating Margin % of 7.89% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on InnSuites Hospitality Trust and its competitors. According to the industry distribution chart, InnSuites Hospitality Trust ranks #715 out of 750 companies in the REITs industry, placing it in the top 95.3%.
Is InnSuites Hospitality Trust's Operating Margin % too high?
InnSuites Hospitality Trust's current Operating Margin % is 7.89%. The REITs industry median Operating Margin % is 52.67. InnSuites Hospitality Trust's value of 7.89% is 85% below this industry median. Based on the distribution chart, InnSuites Hospitality Trust ranks #715 out of 750 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, InnSuites Hospitality Trust has a GF Score™ of 56/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does InnSuites Hospitality Trust's Operating Margin % compare to AHT and HST?
According to the REITs industry distribution chart, InnSuites Hospitality Trust ranks #715 out of 750 companies for Operating Margin %. This places InnSuites Hospitality Trust in the lower half of its industry. The industry median Operating Margin % is 52.67. InnSuites Hospitality Trust's value of 7.89% is 85% below this benchmark. 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. InnSuites Hospitality Trust's current Operating Margin % of 7.89% is 85% 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 InnSuites Hospitality Trust 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. InnSuites Hospitality Trust's current Operating Margin % is 7.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is InnSuites Hospitality Trust stock overvalued right now?
Based on GuruFocus' analysis, InnSuites Hospitality Trust (IHT) is currently considered Fairly Valued. The stock's GF Value™ is $1.68, compared to a current price of $1.71 — trading 1.8% above its estimated fair value. The current Operating Margin % is 7.89% and 85% below the REITs industry median of 52.67. InnSuites Hospitality Trust's overall GF Score™ is 56/100 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 InnSuites Hospitality Trust (IHT), the current Operating Margin % is 7.89% as of Apr. 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 InnSuites Hospitality Trust (IHT) Overvalued in 2026?
Based on GuruFocus' analysis, InnSuites Hospitality Trust stock appears to be overvalued.
The current stock price of $1.71 is trading 1.8% above its estimated GF Value™ of $1.68.
GuruFocus considers InnSuites Hospitality Trust to be Fairly Valued.
Key valuation signals for IHT:
Operating Margin %: 7.89%
GF Value™: $1.68 vs. price of $1.71 (1.8% above fair value)
Industry Position: 85% below the REITs median (#715 of 750)
No single metric tells the full story. See the IHT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
InnSuites Hospitality Trust is a real estate investment trust. It is engaged in the ownership and operation of hotel properties. It owns interests in two hotels, operates and provides management services, and provides trademark license services, for two hotels. The Trust also holds an investment related to clean energy electricity generation technology and manages an option to acquire an investment in an independent boutique hotel reservation and hotel services business.
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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