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.
COPT Defense Properties Operating Margin % Related Terms
COPT Defense Properties Operating Margin % Historical Data
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The historical data trend for COPT Defense Properties'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.
MEX:CDP vs KRC, SLG, HIW: Operating Margin % Comparison
For the REIT - Office subindustry, COPT Defense Properties'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.
COPT Defense Properties Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, COPT Defense Properties's Operating Margin % distribution charts can be found below:
* The bar in red indicates where COPT Defense Properties'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.
COPT Defense Properties'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.
COPT Defense Properties (MEX:CDP) has a Operating Margin % of 29.07% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on COPT Defense Properties and its competitors. This is 11% above median its historical median of 26.10. Over the past decade, COPT Defense Properties' Operating Margin % has ranged from 24.55 to 30.16. According to the industry distribution chart, COPT Defense Properties ranks #562 out of 749 companies in the REITs industry, placing it in the top 75%.
Is COPT Defense Properties' Operating Margin % too high?
COPT Defense Properties' current Operating Margin % of 29.07% is 11% above median its 10-year median of 26.10. Over the past 10 years, this metric has ranged from a low of 24.55 to a high of 30.16. The REITs industry median Operating Margin % is 52.71. COPT Defense Properties' value of 29.07% is 44.8% below this industry median. Based on the distribution chart, COPT Defense Properties ranks #562 out of 749 companies in the REITs industry, which is below the industry midpoint. Overall, COPT Defense Properties has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does COPT Defense Properties' Operating Margin % compare to KRC and SLG?
According to the REITs industry distribution chart, COPT Defense Properties ranks #562 out of 749 companies for Operating Margin %. This places COPT Defense Properties in the lower half of its industry. The industry median Operating Margin % is 52.71. COPT Defense Properties' value of 29.07% is 44.8% below this benchmark. Historically, COPT Defense Properties' own Operating Margin % has ranged from 24.55 to 30.16 over the past decade. While the company's 10-year median is 26.10 vs. the industry median of 52.71, COPT Defense Properties 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. COPT Defense Properties's current Operating Margin % of 29.07% is 44.8% 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 COPT Defense Properties 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. COPT Defense Properties's current Operating Margin % is 29.07%, which is 11% above median its own 10-year median of 26.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is COPT Defense Properties stock overvalued right now?
COPT Defense Properties (MEX:CDP) has a current Operating Margin % of 29.07%. The stock's GF Value™ is MXN418.87, compared to a current price of MXN531.56 — trading 26.9% above its estimated fair value. The current Operating Margin % is 29.07%, which is 11% above median its 10-year median of 26.10 and 44.8% below the REITs industry median of 52.71. COPT Defense Properties' overall GF Score™ is 73/100 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 COPT Defense Properties (MEX:CDP), the current Operating Margin % is 29.07% 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 COPT Defense Properties (MEX:CDP) Overvalued in 2026?
Based on GuruFocus' analysis, COPT Defense Properties stock appears to be overvalued.
The current stock price of MXN531.56 is trading 26.9% above its estimated GF Value™ of MXN418.87.
Key valuation signals for MEX:CDP:
Operating Margin %: 29.07% (11% above median its 10-year median of 26.10)
GF Value™: MXN418.87 vs. price of MXN531.56 (26.9% above fair value)
Industry Position: 44.8% below the REITs median (#562 of 749)
No single metric tells the full story. See the MEX:CDP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
COPT Defense Properties is a fully-integrated and self-managed real estate investment trust (REIT) focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government (USG) defense installations and missions. The company has two reportable segments: Defense/IT Portfolio; and Other. Defense/IT Portfolio includes sub-segments such as: Fort George G. Meade and the Baltimore/Washington Corridor (Fort Meade/BW Corridor); Redstone Arsenal in Huntsville, Alabama; Northern Virginia Defense/IT Locations (NoVA Defense/IT); Lackland Air Force Base in San Antonio, Texas; locations serving the U.S. Navy (Navy Support); and data center shells in Northern Virginia.
73GF Score
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