SAorate Real EstateJSE:SAC +0.55%67 Operating Margin % is 46.18% as of Dec. 2025, which is 11% below its 10-year median of 51.77. GuruFocus rates JSE:SAC with a GF Score™ of 67/100 and a GF Value™ of R2.36 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 750 REITs companies, SAorate Real Estate ranks worse than 61.2% on this metric.
SAorate Real Estate (JSE:SAC) 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.
SAorate Real Estate Operating Margin % Related Terms
SAorate Real Estate Operating Margin % Historical Data
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The historical data trend for SAorate Real Estate'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:SAC vs VICI, WPC: Operating Margin % Comparison
For the REIT - Diversified subindustry, SAorate Real Estate'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.
SAorate Real Estate Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, SAorate Real Estate's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SAorate Real Estate's Operating Margin % falls into.
SAorate Real Estate 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.
SAorate Real Estate'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.
SAorate Real Estate (JSE:SAC) has a Operating Margin % of 46.18% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on SAorate Real Estate and its competitors. This is 11% below median its historical median of 51.77. Over the past decade, SAorate Real Estate's Operating Margin % has ranged from 45.91 to 63.13. According to the industry distribution chart, SAorate Real Estate ranks #459 out of 750 companies in the REITs industry, placing it in the top 61.2%.
Is SAorate Real Estate's Operating Margin % too high?
SAorate Real Estate's current Operating Margin % of 46.18% is 11% below median its 10-year median of 51.77. Over the past 10 years, this metric has ranged from a low of 45.91 to a high of 63.13. The REITs industry median Operating Margin % is 52.67. SAorate Real Estate's value of 46.18% is 12.3% below this industry median. Based on the distribution chart, SAorate Real Estate ranks #459 out of 750 companies in the REITs industry, which is below the industry midpoint. Overall, SAorate Real Estate has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SAorate Real Estate's Operating Margin % compare to VICI and WPC?
According to the REITs industry distribution chart, SAorate Real Estate ranks #459 out of 750 companies for Operating Margin %. This places SAorate Real Estate in the lower half of its industry. The industry median Operating Margin % is 52.67. SAorate Real Estate's value of 46.18% is 12.3% below this benchmark. Historically, SAorate Real Estate's own Operating Margin % has ranged from 45.91 to 63.13 over the past decade. While the company's 10-year median is 51.77 vs. the industry median of 52.67, SAorate Real Estate has consistently been below 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. SAorate Real Estate's current Operating Margin % of 46.18% is 12.3% 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 SAorate Real Estate 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. SAorate Real Estate's current Operating Margin % is 46.18%, which is 11% below median its own 10-year median of 51.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SAorate Real Estate stock overvalued right now?
Based on GuruFocus' analysis, SAorate Real Estate (JSE:SAC) is currently considered Significantly Overvalued. The stock's GF Value™ is R2.36, compared to a current price of R3.63 — trading 53.8% above its estimated fair value. The current Operating Margin % is 46.18%, which is 11% below median its 10-year median of 51.77 and 12.3% below the REITs industry median of 52.67. SAorate Real Estate's overall GF Score™ is 67/100 with 9 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 SAorate Real Estate (JSE:SAC), the current Operating Margin % is 46.18% 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 SAorate Real Estate (JSE:SAC) Overvalued in 2026?
Based on GuruFocus' analysis, SAorate Real Estate stock appears to be overvalued.
The current stock price of R3.63 is trading 53.8% above its estimated GF Value™ of R2.36.
GuruFocus considers SAorate Real Estate to be Significantly Overvalued.
Key valuation signals for JSE:SAC:
Operating Margin %: 46.18% (11% below median its 10-year median of 51.77)
GF Value™: R2.36 vs. price of R3.63 (53.8% above fair value)
Industry Position: 12.3% below the REITs median (#459 of 750)
No single metric tells the full story. See the JSE:SAC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SA Corporate Real Estate Ltd is a real estate investment trust. The company's portfolio includes mostly industrial and retail properties, with the remainder of inner-city residential and commercial assets. The properties are mainly located in the metropolitan centres of South Africa, with more than half located in Gauteng, approximately one-third in KwaZulu-Natal, and the others in Western Cape and other regions. The company's tenants consist of large national tenants, government tenants and franchisees. Its reportable segments are Retail, Industrial, Commercial, Residential, and Corporate. The company generates the maximum of its revenue from the Residential segment.
67GF Score
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