Ajial Real Estate & Entertainment CoKUW:AREEC 46 Operating Margin % is 52.37% as of Mar. 2026, which is 100% above its 10-year median of 26.23. GuruFocus rates KUW:AREEC with a GF Score™ of 46/100 and a GF Value™ of KWD0.34 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,745 Real Estate companies, Ajial Real Estate & Entertainment Co ranks better than 85.27% on this metric.
Ajial Real Estate & Entertainment Co (KUW:AREEC) 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.
Ajial Real Estate & Entertainment Co Operating Margin % Related Terms
Ajial Real Estate & Entertainment Co 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.
Ajial Real Estate & Entertainment Co Operating Margin % Chart
KUW:AREEC vs CBRE, BEKE: Operating Margin % Comparison
For the Real Estate Services subindustry, Ajial Real Estate & Entertainment Co'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.
Ajial Real Estate & Entertainment Co Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Ajial Real Estate & Entertainment Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ajial Real Estate & Entertainment Co's Operating Margin % falls into.
Ajial Real Estate & Entertainment Co 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.
* 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.
Ajial Real Estate & Entertainment Co (KUW:AREEC) has a Operating Margin % of 52.37% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ajial Real Estate & Entertainment Co and its competitors. This is 100% above median its historical median of 26.23. According to the industry distribution chart, Ajial Real Estate & Entertainment Co ranks #257 out of 1745 companies in the Real Estate industry, placing it in the top 14.7%.
Is Ajial Real Estate & Entertainment Co's Operating Margin % too high?
Ajial Real Estate & Entertainment Co's current Operating Margin % of 52.37% is 100% above median its 10-year median of 26.23. The Real Estate industry median Operating Margin % is 13.21. Ajial Real Estate & Entertainment Co's value of 52.37% is 296.4% above this industry median. Based on the distribution chart, Ajial Real Estate & Entertainment Co ranks #257 out of 1745 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, Ajial Real Estate & Entertainment Co has a GF Score™ of 46/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ajial Real Estate & Entertainment Co's Operating Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Ajial Real Estate & Entertainment Co ranks #257 out of 1745 companies for Operating Margin %. This places Ajial Real Estate & Entertainment Co in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 13.21. Ajial Real Estate & Entertainment Co's value of 52.37% is 296.4% above this benchmark. While the company's 10-year median is 26.23 vs. the industry median of 13.21, Ajial Real Estate & Entertainment Co 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.21, based on 1,745 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. Ajial Real Estate & Entertainment Co's current Operating Margin % of 52.37% is 296.4% 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 Ajial Real Estate & Entertainment Co and its competitors. For the Real Estate industry, the median Operating Margin % is 13.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ajial Real Estate & Entertainment Co's current Operating Margin % is 52.37%, which is 100% above median its own 10-year median of 26.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ajial Real Estate & Entertainment Co stock overvalued right now?
Based on GuruFocus' analysis, Ajial Real Estate & Entertainment Co (KUW:AREEC) is currently considered Fairly Valued. The stock's GF Value™ is KWD0.34, compared to a current price of KWD0.31 — trading 9.1% below its estimated fair value. The current Operating Margin % is 52.37%, which is 100% above median its 10-year median of 26.23 and 296.4% above the Real Estate industry median of 13.21. Ajial Real Estate & Entertainment Co's overall GF Score™ is 46/100 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 Ajial Real Estate & Entertainment Co (KUW:AREEC), the current Operating Margin % is 52.37% 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 Ajial Real Estate & Entertainment Co (KUW:AREEC) Overvalued in 2026?
Based on GuruFocus' analysis, Ajial Real Estate & Entertainment Co stock appears to be undervalued.
The current stock price of KWD0.31 is trading 9.1% below its estimated GF Value™ of KWD0.34.
GuruFocus considers Ajial Real Estate & Entertainment Co to be Fairly Valued.
Key valuation signals for KUW:AREEC:
Operating Margin %: 52.37% (100% above median its 10-year median of 26.23)
GF Value™: KWD0.34 vs. price of KWD0.31 (9.1% below fair value)
Industry Position: 296.4% above the Real Estate median (#257 of 1745)
No single metric tells the full story. See the KUW:AREEC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ajial Real Estate & Entertainment Co Business Description
Ajial Real Estate & Entertainment Co is engaged in all real estate activities including buying and selling lands, real estate and renting and leasing thereof inside and outside Kuwait. It establishes and maintains buildings and real estate projects including establishment of residential complexes thereof and commercial markets and entertainment centres, touristic facilities and building special accommodations. The group has three operating segments: real estate, entertainment and investment. The majority of the revenue is derived from real estate segments that comprise investment, rental of and trading in real estate and construction or development of real estate for the sale in the ordinary course of business and other related real estate services.
46GF Score
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