Big Yellow GroupLSE:BYG +5.35%72 Operating Margin % is 62.22% as of Mar. 2026, which is 1% above its 10-year median of 61.88. GuruFocus rates LSE:BYG with a GF Score™ of 72/100 and a GF Value™ of £10.56 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 750 REITs companies, Big Yellow Group ranks better than 66.4% on this metric.
Big Yellow Group (LSE:BYG) 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.
Big Yellow Group Operating Margin % Related Terms
Big Yellow Group Operating Margin % Historical Data
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The historical data trend for Big Yellow 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.
LSE:BYG vs PLD, PSA, EXR: Operating Margin % Comparison
For the REIT - Industrial subindustry, Big Yellow 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.
Big Yellow Group Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Big Yellow Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Big Yellow 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.
Big Yellow Group's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Big Yellow Group (LSE:BYG) has a Operating Margin % of 62.22% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Big Yellow Group and its competitors. This is near median its historical median of 61.88. Over the past decade, Big Yellow Group's Operating Margin % has ranged from 59.88 to 64.33. According to the industry distribution chart, Big Yellow Group ranks #252 out of 750 companies in the REITs industry, placing it in the top 33.6%.
Is Big Yellow Group's Operating Margin % too high?
Big Yellow Group's current Operating Margin % of 62.22% is near median its 10-year median of 61.88. Over the past 10 years, this metric has ranged from a low of 59.88 to a high of 64.33. The REITs industry median Operating Margin % is 52.67. Big Yellow Group's value of 62.22% is 18.1% above this industry median. Based on the distribution chart, Big Yellow Group ranks #252 out of 750 companies in the REITs industry, which is above the industry midpoint. Overall, Big Yellow Group has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Big Yellow Group's Operating Margin % compare to PLD and PSA?
According to the REITs industry distribution chart, Big Yellow Group ranks #252 out of 750 companies for Operating Margin %. This puts Big Yellow Group in the upper half of its industry. The industry median Operating Margin % is 52.67. Big Yellow Group's value of 62.22% is 18.1% above this benchmark. Historically, Big Yellow Group's own Operating Margin % has ranged from 59.88 to 64.33 over the past decade. While the company's 10-year median is 61.88 vs. the industry median of 52.67, Big Yellow Group 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 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. Big Yellow Group's current Operating Margin % of 62.22% is 18.1% 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 Big Yellow Group 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. Big Yellow Group's current Operating Margin % is 62.22%, which is near median its own 10-year median of 61.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Big Yellow Group stock overvalued right now?
Based on GuruFocus' analysis, Big Yellow Group (LSE:BYG) is currently considered Modestly Undervalued. The stock's GF Value™ is £10.56, compared to a current price of £9.06 — trading 14.2% below its estimated fair value. The current Operating Margin % is 62.22%, which is near median its 10-year median of 61.88 and 18.1% above the REITs industry median of 52.67. Big Yellow Group's overall GF Score™ is 72/100 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 Big Yellow Group (LSE:BYG), the current Operating Margin % is 62.22% 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 Big Yellow Group (LSE:BYG) Overvalued in 2026?
Based on GuruFocus' analysis, Big Yellow Group stock appears to be undervalued.
The current stock price of £9.06 is trading 14.2% below its estimated GF Value™ of £10.56.
GuruFocus considers Big Yellow Group to be Modestly Undervalued.
Key valuation signals for LSE:BYG:
Operating Margin %: 62.22% (near median its 10-year median of 61.88)
GF Value™: £10.56 vs. price of £9.06 (14.2% below fair value)
Industry Position: 18.1% above the REITs median (#252 of 750)
No single metric tells the full story. See the LSE:BYG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Big Yellow Group PLC operates a portfolio of modern, purpose-built self-storage stores. The Group provides self storage solutions for domestic and business customers, including storage space, flexi offices, dedicated office space, delivery acceptance, forklifting, courier arrangement services, and the sale of boxes and packing materials. The Group operates Big Yellow stores and Armadillo stores across the United Kingdom, with a focus on London and the South East. The Group operates in one segment, the provision of self-storage and related services.
72GF Score
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