Equity ResidentialLTS:0IIB +0.87%75 Operating Margin % is 27.40% as of Mar. 2026, which is 10% below its 10-year median of 30.56. GuruFocus rates LTS:0IIB with a GF Score™ of 75/100 and a GF Value™ of $69.84 (Fairly Valued). The stock has 6 warning signs investors should review. Among 750 REITs companies, Equity Residential ranks worse than 75.47% on this metric.
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.
Equity Residential Operating Margin % Related Terms
Equity Residential Operating Margin % Historical Data
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The historical data trend for Equity Residential'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.
LTS:0IIB vs AVB, ESS, INVH: Operating Margin % Comparison
For the REIT - Residential subindustry, Equity Residential'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.
Equity Residential Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Equity Residential's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Equity Residential'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.
Equity Residential's Operating Margin % for the fiscal year that ended in Dec. 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.
Equity Residential (LTS:0IIB) has a Operating Margin % of 27.40% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Equity Residential and its competitors. This is 10% below median its historical median of 30.56. Over the past decade, Equity Residential's Operating Margin % has ranged from 25.18 to 35.29. According to the industry distribution chart, Equity Residential ranks #566 out of 750 companies in the REITs industry, placing it in the top 75.5%.
Is Equity Residential's Operating Margin % too high?
Equity Residential's current Operating Margin % of 27.40% is 10% below median its 10-year median of 30.56. Over the past 10 years, this metric has ranged from a low of 25.18 to a high of 35.29. The REITs industry median Operating Margin % is 52.67. Equity Residential's value of 27.40% is 48% below this industry median. Based on the distribution chart, Equity Residential ranks #566 out of 750 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Equity Residential has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Equity Residential's Operating Margin % compare to AVB and ESS?
According to the REITs industry distribution chart, Equity Residential ranks #566 out of 750 companies for Operating Margin %. This places Equity Residential in the lower half of its industry. The industry median Operating Margin % is 52.67. Equity Residential's value of 27.40% is 48% below this benchmark. Historically, Equity Residential's own Operating Margin % has ranged from 25.18 to 35.29 over the past decade. While the company's 10-year median is 30.56 vs. the industry median of 52.67, Equity Residential 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 52.67, 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. Equity Residential's current Operating Margin % of 27.40% is 48% 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 Equity Residential 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. Equity Residential's current Operating Margin % is 27.40%, which is 10% below median its own 10-year median of 30.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Equity Residential stock overvalued right now?
Based on GuruFocus' analysis, Equity Residential (LTS:0IIB) is currently considered Fairly Valued. The stock's GF Value™ is $69.84, compared to a current price of $65.27 — trading 6.5% below its estimated fair value. The current Operating Margin % is 27.40%, which is 10% below median its 10-year median of 30.56 and 48% below the REITs industry median of 52.67. Equity Residential's overall GF Score™ is 75/100 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 Equity Residential (LTS:0IIB), the current Operating Margin % is 27.40% 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 Equity Residential (LTS:0IIB) Overvalued in 2026?
Based on GuruFocus' analysis, Equity Residential stock appears to be undervalued.
The current stock price of $65.27 is trading 6.5% below its estimated GF Value™ of $69.84.
GuruFocus considers Equity Residential to be Fairly Valued.
Key valuation signals for LTS:0IIB:
Operating Margin %: 27.40% (10% below median its 10-year median of 30.56)
GF Value™: $69.84 vs. price of $65.27 (6.5% below fair value)
Industry Position: 48% below the REITs median (#566 of 750)
No single metric tells the full story. See the LTS:0IIB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Equity Residential owns a portfolio of 312 apartment communities with over 85,000 units and is developing two additional properties with 665 units. The company focuses on owning large, high-quality properties in the urban and suburban submarkets of Southern California, San Francisco, Washington, D.C., New York, Seattle, and Boston.
75GF Score
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