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Heriot REITJSE:HET 69 Operating Margin % is 72.77% as of Dec. 2025, which is 6% below its 10-year median of 77.47. GuruFocus rates JSE:HET with a GF Score™ of 69/100 and a GF Value™ of R23.55 (Fairly Valued). The stock has 13 warning signs investors should review. Among 742 REITs companies, Heriot REIT ranks better than 82.88% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Heriot REIT's Operating Income for the
six
months ended in Dec. 2025 was R462 Mil. Heriot REIT's Revenue for the
six
months ended in Dec. 2025 was R634 Mil. Therefore, Heriot REIT's Operating Margin % for the quarter that ended in Dec. 2025 was 72.77%.
Warning Sign:
Heriot REIT Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.3%.
The historical rank and industry rank for Heriot REIT's Operating Margin % or its related term are showing as below:
JSE:HET'
s Operating Margin % Range Over the Past 10 Years
Min: 74.46 Med: 77.47 Max: 84.78
Current: 74.79
JSE:HET's Operating Margin % is ranked better than 82.88% of 742
companies
in the REITs industry
Industry Median: 52.725
vs JSE:HET: 74.79
Heriot REIT's 5-Year Average Operating Margin % Growth Rate was -1.30% per year.
Heriot REIT's Operating Income for the
six
months ended in Dec. 2025 was R462 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was R949 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.
Heriot REIT Operating Margin % Related Terms
Heriot REIT Operating Margin % Historical Data
* Premium members only.
The historical data trend for Heriot 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.
JSE:HET vs VICI, WPC: Operating Margin % Comparison
For the REIT - Diversified subindustry, Heriot 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.
Heriot REIT Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Heriot REIT's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Heriot 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.
Heriot REIT's Operating Margin % for the fiscal year that ended in Jun. 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.
Heriot REIT (JSE:HET) has a Operating Margin % of 72.77% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Heriot REIT and its competitors. This is near median its historical median of 77.47. Over the past decade, Heriot REIT's Operating Margin % has ranged from 74.46 to 84.78. According to the industry distribution chart, Heriot REIT ranks #127 out of 742 companies in the REITs industry, placing it in the top 17.1%.
Is Heriot REIT's Operating Margin % too high?
Heriot REIT's current Operating Margin % of 72.77% is near median its 10-year median of 77.47. Over the past 10 years, this metric has ranged from a low of 74.46 to a high of 84.78. The REITs industry median Operating Margin % is 52.73. Heriot REIT's value of 72.77% is 38% above this industry median. Based on the distribution chart, Heriot REIT ranks #127 out of 742 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Heriot REIT has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Heriot REIT's Operating Margin % compare to VICI and WPC?
According to the REITs industry distribution chart, Heriot REIT ranks #127 out of 742 companies for Operating Margin %. This places Heriot REIT in the top 17% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 52.73. Heriot REIT's value of 72.77% is 38% above this benchmark. Historically, Heriot REIT's own Operating Margin % has ranged from 74.46 to 84.78 over the past decade. While the company's 10-year median is 77.47 vs. the industry median of 52.73, Heriot 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 52.73, based on 742 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. Heriot REIT's current Operating Margin % of 72.77% is 38% 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 Heriot REIT and its competitors. For the REITs industry, the median Operating Margin % is 52.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Heriot REIT's current Operating Margin % is 72.77%, which is near median its own 10-year median of 77.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Heriot REIT stock overvalued right now?
Based on GuruFocus' analysis, Heriot REIT (JSE:HET) is currently considered Fairly Valued. The stock's GF Value™ is R23.55, compared to a current price of R26.00 — trading 10.4% above its estimated fair value. The current Operating Margin % is 72.77%, which is near median its 10-year median of 77.47 and 38% above the REITs industry median of 52.73. Heriot REIT's overall GF Score™ is 69/100 with 13 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 Heriot REIT (JSE:HET), the current Operating Margin % is 72.77% 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 Heriot REIT (JSE:HET) Overvalued in 2026?
Based on GuruFocus' analysis, Heriot REIT stock appears to be overvalued.
The current stock price of R26.00 is trading 10.4% above its estimated GF Value™ of R23.55.
GuruFocus considers Heriot REIT to be Fairly Valued.
Key valuation signals for JSE:HET:
Operating Margin %: 72.77% (near median its 10-year median of 77.47)
GF Value™: R23.55 vs. price of R26.00 (10.4% above fair value)
Industry Position: 38% above the REITs median (#127 of 742)
No single metric tells the full story. See the JSE:HET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Heriot REIT Ltd is a South African real estate investment trust. The company's primary segments include retail, industrial, office, specialized, residential, and others. While the majority of the revenue is earned from the Retail segment. The primary objective of the company is to develop or acquire yield-enhancing assets within Southern Africa to create a stable and diverse portfolio for the purposes of generating capital growth and securing escalating net rental income streams. Geographically, the company operates in Gauteng, Western Cape, KwaZulu-Natal, North West, Mpumalanga, Limpopo, Free State, and Namibia.
69GF Score
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