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.
Safari Investments RSA Operating Margin % Related Terms
Safari Investments RSA Operating Margin % Historical Data
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The historical data trend for Safari Investments RSA'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:SAR vs VICI, WPC: Operating Margin % Comparison
For the REIT - Diversified subindustry, Safari Investments RSA'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.
Safari Investments RSA Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Safari Investments RSA's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Safari Investments RSA'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.
Safari Investments RSA'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.
Safari Investments RSA (JSE:SAR) has a Operating Margin % of 52.25% as of Jun. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Safari Investments RSA and its competitors. This is 19% below median its historical median of 64.22. Over the past decade, Safari Investments RSA's Operating Margin % has ranged from 51.21 to 75.44.
Is Safari Investments RSA's Operating Margin % too high?
Safari Investments RSA's current Operating Margin % of 52.25% is 19% below median its 10-year median of 64.22. Over the past 10 years, this metric has ranged from a low of 51.21 to a high of 75.44. The REITs industry median Operating Margin % is 52.71. Safari Investments RSA's value of 52.25% is 0.9% below this industry median. Overall, Safari Investments RSA has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does Safari Investments RSA's Operating Margin % compare to VICI and WPC?
Safari Investments RSA's Operating Margin % of 52.25% can be compared against companies in the REITs industry. The industry median Operating Margin % is 52.71. Safari Investments RSA's value of 52.25% is 0.9% below this benchmark. Historically, Safari Investments RSA's own Operating Margin % has ranged from 51.21 to 75.44 over the past decade. While the company's 10-year median is 64.22 vs. the industry median of 52.71, Safari Investments RSA 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 52.71, 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. Safari Investments RSA's current Operating Margin % of 52.25% is 0.9% 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 Safari Investments RSA 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. Safari Investments RSA's current Operating Margin % is 52.25%, which is 19% below median its own 10-year median of 64.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Safari Investments RSA stock overvalued right now?
Safari Investments RSA (JSE:SAR) has a current Operating Margin % of 52.25%. The stock's GF Value™ is R8.83, compared to a current price of R8.40 — trading 4.9% below its estimated fair value. The current Operating Margin % is 52.25%, which is 19% below median its 10-year median of 64.22 and 0.9% below the REITs industry median of 52.71. Safari Investments RSA's overall GF Score™ is 67/100 with 11 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 Safari Investments RSA (JSE:SAR), the current Operating Margin % is 52.25% as of Jun. 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 Safari Investments RSA (JSE:SAR) Overvalued in 2026?
Based on GuruFocus' analysis, Safari Investments RSA stock appears to be undervalued.
The current stock price of R8.40 is trading 4.9% below its estimated GF Value™ of R8.83.
Key valuation signals for JSE:SAR:
Operating Margin %: 52.25% (19% below median its 10-year median of 64.22)
GF Value™: R8.83 vs. price of R8.40 (4.9% below fair value)
No single metric tells the full story. See the JSE:SAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Safari Investments RSA Ltd is a real estate investment trust. The Company earns revenue from the leasing of investment property and recoveries of property expenses. The company's operating segments include Atteridgeville, Mamelodi, Sebokeng, Limpopo, Heidelberg, and Namibia. It generates maximum revenue from the Atteridgeville segment.
67GF 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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