The Property Franchise GroupLSE:TPFG -3.53%99 Operating Margin % is 28.66% as of Dec. 2025, which is 18% below its 10-year median of 34.83. GuruFocus rates LSE:TPFG with a GF Score™ of 99/100 and a GF Value™ of £5.62 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,745 Real Estate companies, The Property Franchise Group ranks better than 71.35% on this metric.
The Property Franchise Group (LSE:TPFG) 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.
The Property Franchise Group Operating Margin % Related Terms
The Property Franchise Group 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.
The Property Franchise Group Operating Margin % Chart
LSE:TPFG vs CBRE, BEKE: Operating Margin % Comparison
For the Real Estate Services subindustry, The Property Franchise 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.
The Property Franchise Group Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, The Property Franchise Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where The Property Franchise Group's Operating Margin % falls into.
The Property Franchise Group 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.
The Property Franchise Group (LSE:TPFG) has a Operating Margin % of 28.66% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on The Property Franchise Group and its competitors. This is 18% below median its historical median of 34.83. Over the past decade, The Property Franchise Group's Operating Margin % has ranged from 26.68 to 43.20. According to the industry distribution chart, The Property Franchise Group ranks #500 out of 1745 companies in the Real Estate industry, placing it in the top 28.7%.
Is The Property Franchise Group's Operating Margin % too high?
The Property Franchise Group's current Operating Margin % of 28.66% is 18% below median its 10-year median of 34.83. Over the past 10 years, this metric has ranged from a low of 26.68 to a high of 43.20. The Real Estate industry median Operating Margin % is 13.23. The Property Franchise Group's value of 28.66% is 116.6% above this industry median. Based on the distribution chart, The Property Franchise Group ranks #500 out of 1745 companies in the Real Estate industry, which is above the industry midpoint. Overall, The Property Franchise Group has a GF Score™ of 99/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Property Franchise Group's Operating Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, The Property Franchise Group ranks #500 out of 1745 companies for Operating Margin %. This puts The Property Franchise Group in the upper half of its industry. The industry median Operating Margin % is 13.23. The Property Franchise Group's value of 28.66% is 116.6% above this benchmark. Historically, The Property Franchise Group's own Operating Margin % has ranged from 26.68 to 43.20 over the past decade. While the company's 10-year median is 34.83 vs. the industry median of 13.23, The Property Franchise 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.23, 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. The Property Franchise Group's current Operating Margin % of 28.66% is 116.6% 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 The Property Franchise Group and its competitors. For the Real Estate industry, the median Operating Margin % is 13.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Property Franchise Group's current Operating Margin % is 28.66%, which is 18% below median its own 10-year median of 34.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Property Franchise Group stock overvalued right now?
Based on GuruFocus' analysis, The Property Franchise Group (LSE:TPFG) is currently considered Modestly Undervalued. The stock's GF Value™ is £5.62, compared to a current price of £4.92 — trading 12.5% below its estimated fair value. The current Operating Margin % is 28.66%, which is 18% below median its 10-year median of 34.83 and 116.6% above the Real Estate industry median of 13.23. The Property Franchise Group's overall GF Score™ is 99/100 with 4 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 The Property Franchise Group (LSE:TPFG), the current Operating Margin % is 28.66% 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 The Property Franchise Group (LSE:TPFG) Overvalued in 2026?
Based on GuruFocus' analysis, The Property Franchise Group stock appears to be undervalued.
The current stock price of £4.92 is trading 12.5% below its estimated GF Value™ of £5.62.
GuruFocus considers The Property Franchise Group to be Modestly Undervalued.
Key valuation signals for LSE:TPFG:
Operating Margin %: 28.66% (18% below median its 10-year median of 34.83)
GF Value™: £5.62 vs. price of £4.92 (12.5% below fair value)
Industry Position: 116.6% above the Real Estate median (#500 of 1745)
No single metric tells the full story. See the LSE:TPFG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Property Franchise Group PLC is a UK-based company engaged in the residential property franchising business. The principal activity of the group is the sale of franchises and the support of franchisees in supplying residential letting, sales, and property management services within the UK. Its brands include CJ Hole, Ellis & Co, Ewemove, Martin & Co, Parkers, Whitegates, and others. The company derives revenue from management service fees and the rest from franchise sales and other sources. The company operates in three segments, which include: Franchising, Financial Services, and Licensing. The majority of its revenue is generated from the Franchising segment.
99GF 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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