Workspace GroupLSE:WKP +0.41%65 Operating Margin % is 48.96% as of Mar. 2026, which is 10% below its 10-year median of 54.67. GuruFocus rates LSE:WKP with a GF Score™ of 65/100 and a GF Value™ of £4.54 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 749 REITs companies, Workspace Group ranks worse than 54.07% on this metric.
Workspace Group (LSE:WKP) 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.
Workspace Group Operating Margin % Related Terms
Workspace Group Operating Margin % Historical Data
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The historical data trend for Workspace 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:WKP vs BXP, ARE, VNO: Operating Margin % Comparison
For the REIT - Office subindustry, Workspace 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.
Workspace Group Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Workspace Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Workspace 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.
Workspace 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.
Workspace Group (LSE:WKP) has a Operating Margin % of 48.96% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Workspace Group and its competitors. This is 10% below median its historical median of 54.67. Over the past decade, Workspace Group's Operating Margin % has ranged from 43.92 to 64.62. According to the industry distribution chart, Workspace Group ranks #405 out of 749 companies in the REITs industry, placing it in the top 54.1%.
Is Workspace Group's Operating Margin % too high?
Workspace Group's current Operating Margin % of 48.96% is 10% below median its 10-year median of 54.67. Over the past 10 years, this metric has ranged from a low of 43.92 to a high of 64.62. The REITs industry median Operating Margin % is 52.71. Workspace Group's value of 48.96% is 7.1% below this industry median. Based on the distribution chart, Workspace Group ranks #405 out of 749 companies in the REITs industry, which is below the industry midpoint. Overall, Workspace Group has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Workspace Group's Operating Margin % compare to BXP and ARE?
According to the REITs industry distribution chart, Workspace Group ranks #405 out of 749 companies for Operating Margin %. This places Workspace Group in the lower half of its industry. The industry median Operating Margin % is 52.71. Workspace Group's value of 48.96% is 7.1% below this benchmark. Historically, Workspace Group's own Operating Margin % has ranged from 43.92 to 64.62 over the past decade. While the company's 10-year median is 54.67 vs. the industry median of 52.71, Workspace Group has consistently been below 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 52.71, based on 749 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. Workspace Group's current Operating Margin % of 48.96% is 7.1% below 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 Workspace Group and its competitors. For the REITs industry, the median Operating Margin % is 52.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Workspace Group's current Operating Margin % is 48.96%, which is 10% below median its own 10-year median of 54.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Workspace Group stock overvalued right now?
Based on GuruFocus' analysis, Workspace Group (LSE:WKP) is currently considered Modestly Undervalued. The stock's GF Value™ is £4.54, compared to a current price of £3.39 — trading 25.2% below its estimated fair value. The current Operating Margin % is 48.96%, which is 10% below median its 10-year median of 54.67 and 7.1% below the REITs industry median of 52.71. Workspace Group's overall GF Score™ is 65/100 with 3 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 Workspace Group (LSE:WKP), the current Operating Margin % is 48.96% 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 Workspace Group (LSE:WKP) Overvalued in 2026?
Based on GuruFocus' analysis, Workspace Group stock appears to be undervalued.
The current stock price of £3.39 is trading 25.2% below its estimated GF Value™ of £4.54.
GuruFocus considers Workspace Group to be Modestly Undervalued.
Key valuation signals for LSE:WKP:
Operating Margin %: 48.96% (10% below median its 10-year median of 54.67)
GF Value™: £4.54 vs. price of £3.39 (25.2% below fair value)
Industry Position: 7.1% below the REITs median (#405 of 749)
No single metric tells the full story. See the LSE:WKP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Workspace Group PLC is a real estate investment trust engaged in the acquisition, design, development, and ownership of office buildings throughout London. The company mainly focuses on leasing office properties to new and growing companies. The real estate assets in Workspace's portfolio are clustered around the London area of Farringdon and elsewhere in northern and central London. The company derives the vast majority of its income in the form of rental revenue from tenants organized into short-term leases. Workspace's tenants include marketing, business consultancy, fashion, finance, software, and architectural firms.
65GF Score
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