LRE (Lead Real Estate Co) Operating Margin %: 14.98% (As of Jun. 2025) — 195% Above Median


LRE Lead Real Estate Co Ltd LRE
34 GF Score
Price $1.25
! 2 Warning Signs
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What is Lead Real Estate Co Operating Margin %?

Lead Real Estate Co LRE -1.57% 34 Operating Margin % is 14.98% as of Jun. 2025, which is 195% above its 10-year median of 5.07. GuruFocus rates LRE with a GF Score™ of 34/100. The stock has 2 warning signs investors should review. Among 1,745 Real Estate companies, Lead Real Estate Co ranks worse than 60.69% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Lead Real Estate Co's Operating Income for the six months ended in Jun. 2025 was $14.3 Mil. Lead Real Estate Co's Revenue for the six months ended in Jun. 2025 was $95.6 Mil. Therefore, Lead Real Estate Co's Operating Margin % for the quarter that ended in Jun. 2025 was 14.98%.

Good Sign:

Lead Real Estate Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Lead Real Estate Co's Operating Margin % or its related term are showing as below:

LRE' s Operating Margin % Range Over the Past 10 Years
Min: 2.06   Med: 5.07   Max: 8.15
Current: 8.15


LRE's Operating Margin % is ranked worse than
60.69% of 1745 companies
in the Real Estate industry
Industry Median: 13.21 vs LRE: 8.15

Lead Real Estate Co's 5-Year Average Operating Margin % Growth Rate was 22.30% per year.

Lead Real Estate Co's Operating Income for the six months ended in Jun. 2025 was $14.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2025 was $10.5 Mil.


Lead Real Estate Co  (NAS:LRE) 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 Nokia’s 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.


Lead Real Estate Co Operating Margin % Related Terms


Lead Real Estate Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Lead Real Estate Co'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.

Lead Real Estate Co Operating Margin % Chart

Lead Real Estate Co Annual Data
Trend Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Operating Margin %
Get a 7-Day Free Trial 4.03 6.04 5.39 4.74 7.83

Lead Real Estate Co Semi-Annual Data
Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 6.72 -1.03 7.85 -11.81 14.98

LRE vs SRRE, MRNO, RENX: Operating Margin % Comparison

For the Real Estate - Development subindustry, Lead Real Estate 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.


Lead Real Estate Co Operating Margin % vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Lead Real Estate Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Lead Real Estate Co's Operating Margin % falls into.


LRE
34GF Score
Lead Real Estate Co Ltd LRE
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Lead Real Estate 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.

Lead Real Estate Co's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as

Operating Margin %=Operating Income (A: Jun. 2025 ) / Revenue (A: Jun. 2025 )
=10.209 / 130.414
=7.83 %

Lead Real Estate Co's Operating Margin % for the quarter that ended in Jun. 2025 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2025 ) / Revenue (Q: Jun. 2025 )
=14.322 / 95.587
=14.98 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 14.98% mean?
Lead Real Estate Co (LRE) has a Operating Margin % of 14.98% as of Jun. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Lead Real Estate Co and its competitors. This is 195% above median its historical median of 5.07. Over the past decade, Lead Real Estate Co's Operating Margin % has ranged from 2.06 to 8.15. According to the industry distribution chart, Lead Real Estate Co ranks #1059 out of 1745 companies in the Real Estate industry, placing it in the top 60.7%.
Is Lead Real Estate Co's Operating Margin % too high?
Lead Real Estate Co's current Operating Margin % of 14.98% is 195% above median its 10-year median of 5.07. Over the past 10 years, this metric has ranged from a low of 2.06 to a high of 8.15. The Real Estate industry median Operating Margin % is 13.21. Lead Real Estate Co's value of 14.98% is 13.4% above this industry median. Based on the distribution chart, Lead Real Estate Co ranks #1059 out of 1745 companies in the Real Estate industry, which is below the industry midpoint. Overall, Lead Real Estate Co has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Lead Real Estate Co's Operating Margin % compare to SRRE and MRNO?
According to the Real Estate industry distribution chart, Lead Real Estate Co ranks #1059 out of 1745 companies for Operating Margin %. This places Lead Real Estate Co in the lower half of its industry. The industry median Operating Margin % is 13.21. Lead Real Estate Co's value of 14.98% is 13.4% above this benchmark. Historically, Lead Real Estate Co's own Operating Margin % has ranged from 2.06 to 8.15 over the past decade. While the company's 10-year median is 5.07 vs. the industry median of 13.21, Lead Real Estate 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. Lead Real Estate Co's current Operating Margin % of 14.98% is 13.4% 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 Lead Real Estate 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. Lead Real Estate Co's current Operating Margin % is 14.98%, which is 195% above median its own 10-year median of 5.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lead Real Estate Co stock overvalued right now?
Lead Real Estate Co (LRE) has a current Operating Margin % of 14.98%. The current Operating Margin % is 14.98%, which is 195% above median its 10-year median of 5.07 and 13.4% above the Real Estate industry median of 13.21. Lead Real Estate Co's overall GF Score™ is 34/100 with 2 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 Lead Real Estate Co (LRE), the current Operating Margin % is 14.98% 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.

Lead Real Estate Co Business Description

Address Nampeidai-cho, 6th Floor, MFPR Shibuya Nanpeidai Building 16-11, Shibuya-ku, Tokyo, JPN, 150-0036
Lead Real Estate Co Ltd operates as a developer of luxury residential properties, including single-family homes and condominiums, across Tokyo, Kanagawa Prefecture, and Sapporo. The company also operates hotels in Tokyo and leases apartment units to individual customers in Japan and Dallas, Texas. Its revenue is predominantly generated from developing and selling single-family homes and condominiums, hotel operations, and residential leasing. The company's sole operating segment is real estate sales. Geographically, it derives revenue from Japan.
34GF 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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