Lendlease GroupLLESY 49 Operating Margin % is -6.11% as of Dec. 2025. GuruFocus rates LLESY with a GF Score™ of 49/100 and a GF Value™ of $3.29 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,745 Real Estate companies, Lendlease Group ranks worse than 77.88% on this metric.
Lendlease Group has never been profitable in the past 3 years. It lost money every year.
Lendlease Group (OTCPK:LLESY) 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.
Lendlease Group Operating Margin % Related Terms
Lendlease Group Operating Margin % Historical Data
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The historical data trend for Lendlease 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.
Lendlease Group Operating Margin % Competitor Comparison
For the Real Estate - Diversified subindustry, Lendlease 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.
Lendlease Group Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Lendlease Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lendlease 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.
Lendlease Group'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.
Lendlease Group (LLESY) has a Operating Margin % of -6.11% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Lendlease Group and its competitors. According to the industry distribution chart, Lendlease Group ranks #1359 out of 1745 companies in the Real Estate industry, placing it in the top 77.9%.
Is Lendlease Group's Operating Margin % too high?
Lendlease Group's current Operating Margin % is -6.11%. Based on the distribution chart, Lendlease Group ranks #1359 out of 1745 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Lendlease Group has a GF Score™ of 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Lendlease Group's Operating Margin % compare to competitors?
According to the Real Estate industry distribution chart, Lendlease Group ranks #1359 out of 1745 companies for Operating Margin %. This places Lendlease Group in the lower half of its industry. The industry median Operating Margin % is 13.21. 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. 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 Lendlease Group 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. Lendlease Group's current Operating Margin % is -6.11%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lendlease Group stock overvalued right now?
Based on GuruFocus' analysis, Lendlease Group (LLESY) is currently considered Possible Value Trap. The stock's GF Value™ is $3.29, compared to a current price of $1.81 — trading 45% below its estimated fair value. The current Operating Margin % is -6.11%. Lendlease Group's overall GF Score™ is 49/100 with 5 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 Lendlease Group (LLESY), the current Operating Margin % is -6.11% 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 Lendlease Group (LLESY) Overvalued in 2026?
Based on GuruFocus' analysis, Lendlease Group stock appears to be undervalued.
The current stock price of $1.81 is trading 45% below its estimated GF Value™ of $3.29.
GuruFocus considers Lendlease Group to be Possible Value Trap.
Key valuation signals for LLESY:
Operating Margin %: -6.11%
GF Value™: $3.29 vs. price of $1.81 (45% below fair value)
No single metric tells the full story. See the LLESY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lendlease has three segments: investments, development, and construction. Lendlease operates locally and overseas across all three segments. However, in the future, its development and construction businesses will be solely in Australia, while the investment management platform will maintain exposure to international real estate assets. Historically, the investments segment contributed about one-third of group EBITDA, development around half, and construction the remaining. The group is targeting an earnings mix between investments/development/construction of 50%/35%/15% post the current restructure, shifting more weights to the defensive and higher margin investments segment. Sales proceeds from asset divestments will primarily be used to repay debt and buy back securities.
49GF Score
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