Federal Realty Investment Trust (LTS:0IL1) 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.
Federal Realty Investment Trust Operating Margin % Related Terms
Federal Realty Investment Trust 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.
Federal Realty Investment Trust Operating Margin % Chart
LTS:0IL1 vs BRX, ADC, NNN: Operating Margin % Comparison
For the REIT - Retail subindustry, Federal Realty Investment Trust'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.
Federal Realty Investment Trust Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Federal Realty Investment Trust's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Federal Realty Investment Trust's Operating Margin % falls into.
Federal Realty Investment Trust 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.
Federal Realty Investment Trust (LTS:0IL1) has a Operating Margin % of 34.09% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Federal Realty Investment Trust and its competitors. This is near median its historical median of 35.48. Over the past decade, Federal Realty Investment Trust's Operating Margin % has ranged from 29.76 to 40.04. According to the industry distribution chart, Federal Realty Investment Trust ranks #529 out of 750 companies in the REITs industry, placing it in the top 70.5%.
Is Federal Realty Investment Trust's Operating Margin % too high?
Federal Realty Investment Trust's current Operating Margin % of 34.09% is near median its 10-year median of 35.48. Over the past 10 years, this metric has ranged from a low of 29.76 to a high of 40.04. The REITs industry median Operating Margin % is 52.67. Federal Realty Investment Trust's value of 34.09% is 35.3% below this industry median. Based on the distribution chart, Federal Realty Investment Trust ranks #529 out of 750 companies in the REITs industry, which is below the industry midpoint. Overall, Federal Realty Investment Trust has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Federal Realty Investment Trust's Operating Margin % compare to BRX and ADC?
According to the REITs industry distribution chart, Federal Realty Investment Trust ranks #529 out of 750 companies for Operating Margin %. This places Federal Realty Investment Trust in the lower half of its industry. The industry median Operating Margin % is 52.67. Federal Realty Investment Trust's value of 34.09% is 35.3% below this benchmark. Historically, Federal Realty Investment Trust's own Operating Margin % has ranged from 29.76 to 40.04 over the past decade. While the company's 10-year median is 35.48 vs. the industry median of 52.67, Federal Realty Investment Trust 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. Federal Realty Investment Trust's current Operating Margin % of 34.09% is 35.3% 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 Federal Realty Investment Trust 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. Federal Realty Investment Trust's current Operating Margin % is 34.09%, which is near median its own 10-year median of 35.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Federal Realty Investment Trust stock overvalued right now?
Based on GuruFocus' analysis, Federal Realty Investment Trust (LTS:0IL1) is currently considered Modestly Overvalued. The stock's GF Value™ is $109.26, compared to a current price of $124.49 — trading 13.9% above its estimated fair value. The current Operating Margin % is 34.09%, which is near median its 10-year median of 35.48 and 35.3% below the REITs industry median of 52.67. Federal Realty Investment Trust's overall GF Score™ is 78/100 with 11 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 Federal Realty Investment Trust (LTS:0IL1), the current Operating Margin % is 34.09% 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 Federal Realty Investment Trust (LTS:0IL1) Overvalued in 2026?
Based on GuruFocus' analysis, Federal Realty Investment Trust stock appears to be overvalued.
The current stock price of $124.49 is trading 13.9% above its estimated GF Value™ of $109.26.
GuruFocus considers Federal Realty Investment Trust to be Modestly Overvalued.
Key valuation signals for LTS:0IL1:
Operating Margin %: 34.09% (near median its 10-year median of 35.48)
GF Value™: $109.26 vs. price of $124.49 (13.9% above fair value)
Industry Position: 35.3% below the REITs median (#529 of 750)
No single metric tells the full story. See the LTS:0IL1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Federal Realty Investment Trust Business Description
Federal Realty Investment Trust is a shopping center-focused retail real estate investment trust that owns high-quality properties in eight of the largest metropolitan markets. Its portfolio includes an interest in 104 properties, which includes 28.8 million square feet of retail space and 2,700 multifamily units. Federal's retail portfolio includes grocery-anchored centers, superregional centers, power centers, and mixed-use urban centers. Federal Realty has focused on owning assets in highly desirable areas with significant growth, and as a result, the average population density and average median household income are higher for its portfolio than for any other retail REIT.
78GF Score
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