Alexandria Real Estate Equities (MEX:ARE) 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.
Alexandria Real Estate Equities Operating Margin % Related Terms
Alexandria Real Estate Equities 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.
Alexandria Real Estate Equities Operating Margin % Chart
MEX:ARE vs BXP, VNO, CUZ: Operating Margin % Comparison
For the REIT - Office subindustry, Alexandria Real Estate Equities'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.
Alexandria Real Estate Equities Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Alexandria Real Estate Equities's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Alexandria Real Estate Equities's Operating Margin % falls into.
Alexandria Real Estate Equities 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.
Alexandria Real Estate Equities (MEX:ARE) has a Operating Margin % of 13.59% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Alexandria Real Estate Equities and its competitors. This is 48% below median its historical median of 26.09. Over the past decade, Alexandria Real Estate Equities' Operating Margin % has ranged from 17.50 to 27.81. According to the industry distribution chart, Alexandria Real Estate Equities ranks #628 out of 750 companies in the REITs industry, placing it in the top 83.7%.
Is Alexandria Real Estate Equities' Operating Margin % too high?
Alexandria Real Estate Equities' current Operating Margin % of 13.59% is 48% below median its 10-year median of 26.09. Over the past 10 years, this metric has ranged from a low of 17.50 to a high of 27.81. The REITs industry median Operating Margin % is 52.67. Alexandria Real Estate Equities' value of 13.59% is 74.2% below this industry median. Based on the distribution chart, Alexandria Real Estate Equities ranks #628 out of 750 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Alexandria Real Estate Equities has a GF Score™ of 50/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Alexandria Real Estate Equities' Operating Margin % compare to BXP and VNO?
According to the REITs industry distribution chart, Alexandria Real Estate Equities ranks #628 out of 750 companies for Operating Margin %. This places Alexandria Real Estate Equities in the lower half of its industry. The industry median Operating Margin % is 52.67. Alexandria Real Estate Equities' value of 13.59% is 74.2% below this benchmark. Historically, Alexandria Real Estate Equities' own Operating Margin % has ranged from 17.50 to 27.81 over the past decade. While the company's 10-year median is 26.09 vs. the industry median of 52.67, Alexandria Real Estate Equities 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. Alexandria Real Estate Equities's current Operating Margin % of 13.59% is 74.2% 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 Alexandria Real Estate Equities 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. Alexandria Real Estate Equities's current Operating Margin % is 13.59%, which is 48% below median its own 10-year median of 26.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alexandria Real Estate Equities stock overvalued right now?
Based on GuruFocus' analysis, Alexandria Real Estate Equities (MEX:ARE) is currently considered Possible Value Trap. The stock's GF Value™ is MXN1,692.14, compared to a current price of MXN905.00 — trading 46.5% below its estimated fair value. The current Operating Margin % is 13.59%, which is 48% below median its 10-year median of 26.09 and 74.2% below the REITs industry median of 52.67. Alexandria Real Estate Equities' overall GF Score™ is 50/100 with 9 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 Alexandria Real Estate Equities (MEX:ARE), the current Operating Margin % is 13.59% 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 Alexandria Real Estate Equities (MEX:ARE) Overvalued in 2026?
Based on GuruFocus' analysis, Alexandria Real Estate Equities stock appears to be undervalued.
The current stock price of MXN905.00 is trading 46.5% below its estimated GF Value™ of MXN1,692.14.
GuruFocus considers Alexandria Real Estate Equities to be Possible Value Trap.
Key valuation signals for MEX:ARE:
Operating Margin %: 13.59% (48% below median its 10-year median of 26.09)
GF Value™: MXN1,692.14 vs. price of MXN905.00 (46.5% below fair value)
Industry Position: 74.2% below the REITs median (#628 of 750)
No single metric tells the full story. See the MEX:ARE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alexandria Real Estate Equities Business Description
Alexandria Real Estate Equities Inc is an urban office real estate investment trust (REIT). It is engaged in the business of providing space for lease to life science, agtech, and technology tenants. The company has established a market presence in key locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle, Texas, and Canada. The Company is a life science real estate investment trust focused on developing, redeveloping, and operating properties that provide space for lease to tenants in the life science industry.
50GF Score
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