Burstone GroupJSE:BTN +0.43%74 Operating Margin % is 54.58% as of Mar. 2026, which is 22% below its 10-year median of 69.72. GuruFocus rates JSE:BTN with a GF Score™ of 74/100 and a GF Value™ of R8.75 (Fairly Valued). The stock has 10 warning signs investors should review. Among 749 REITs companies, Burstone Group ranks worse than 60.88% on this metric.
Burstone Group (JSE:BTN) 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.
Burstone Group Operating Margin % Related Terms
Burstone Group Operating Margin % Historical Data
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The historical data trend for Burstone Group'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.
JSE:BTN vs VICI, WPC: Operating Margin % Comparison
For the REIT - Diversified subindustry, Burstone Group'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.
Burstone Group Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Burstone Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Burstone Group'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.
Burstone Group's Operating Margin % for the fiscal year that ended in Mar. 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.
Burstone Group (JSE:BTN) has a Operating Margin % of 54.58% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Burstone Group and its competitors. This is 22% below median its historical median of 69.72. Over the past decade, Burstone Group's Operating Margin % has ranged from 44.27 to 83.29. According to the industry distribution chart, Burstone Group ranks #456 out of 749 companies in the REITs industry, placing it in the top 60.9%.
Is Burstone Group's Operating Margin % too high?
Burstone Group's current Operating Margin % of 54.58% is 22% below median its 10-year median of 69.72. Over the past 10 years, this metric has ranged from a low of 44.27 to a high of 83.29. The REITs industry median Operating Margin % is 52.71. Burstone Group's value of 54.58% is 3.5% above this industry median. Based on the distribution chart, Burstone Group ranks #456 out of 749 companies in the REITs industry, which is below the industry midpoint. Overall, Burstone Group has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Burstone Group's Operating Margin % compare to VICI and WPC?
According to the REITs industry distribution chart, Burstone Group ranks #456 out of 749 companies for Operating Margin %. This places Burstone Group in the lower half of its industry. The industry median Operating Margin % is 52.71. Burstone Group's value of 54.58% is 3.5% above this benchmark. Historically, Burstone Group's own Operating Margin % has ranged from 44.27 to 83.29 over the past decade. While the company's 10-year median is 69.72 vs. the industry median of 52.71, Burstone Group 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 52.71, 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. Burstone Group's current Operating Margin % of 54.58% is 3.5% 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 Burstone Group 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. Burstone Group's current Operating Margin % is 54.58%, which is 22% below median its own 10-year median of 69.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Burstone Group stock overvalued right now?
Based on GuruFocus' analysis, Burstone Group (JSE:BTN) is currently considered Fairly Valued. The stock's GF Value™ is R8.75, compared to a current price of R9.38 — trading 7.2% above its estimated fair value. The current Operating Margin % is 54.58%, which is 22% below median its 10-year median of 69.72 and 3.5% above the REITs industry median of 52.71. Burstone Group's overall GF Score™ is 74/100 with 10 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 Burstone Group (JSE:BTN), the current Operating Margin % is 54.58% 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 Burstone Group (JSE:BTN) Overvalued in 2026?
Based on GuruFocus' analysis, Burstone Group stock appears to be overvalued.
The current stock price of R9.38 is trading 7.2% above its estimated GF Value™ of R8.75.
GuruFocus considers Burstone Group to be Fairly Valued.
Key valuation signals for JSE:BTN:
Operating Margin %: 54.58% (22% below median its 10-year median of 69.72)
GF Value™: R8.75 vs. price of R9.38 (7.2% above fair value)
Industry Position: 3.5% above the REITs median (#456 of 749)
No single metric tells the full story. See the JSE:BTN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Burstone Group Ltd is a real estate investment trust operating in South Africa and formed with the purpose of investing in direct real estate. The objective of the fund is to expand its asset base by investing in well-priced income-producing investment properties. The fund invests in the office, industrial, and retail property sectors and is managed and operated by Investec Property, which is a wholly-owned subsidiary of Investec. The fund is well diversified in terms of sectoral spread but mostly concentrates investments in the province of Gauteng from a geographical spread standpoint. The vast majority of the fund's revenue is derived from contracted rental fees.
74GF Score
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