Lamar Advertising Co (MEX:LAMR) 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.
Lamar Advertising Co Operating Margin % Related Terms
Lamar Advertising Co Operating Margin % Historical Data
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The historical data trend for Lamar Advertising Co'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:LAMR vs GLPI, WY, SBAC: Operating Margin % Comparison
For the REIT - Specialty subindustry, Lamar Advertising Co'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.
Lamar Advertising Co Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Lamar Advertising Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lamar Advertising Co's Operating Margin % falls into.
Lamar Advertising Co 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.
Lamar Advertising Co'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.
Lamar Advertising Co (MEX:LAMR) has a Operating Margin % of 25.28% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Lamar Advertising Co and its competitors. This is 13% below median its historical median of 28.90. Over the past decade, Lamar Advertising Co's Operating Margin % has ranged from 23.83 to 31.74. According to the industry distribution chart, Lamar Advertising Co ranks #558 out of 750 companies in the REITs industry, placing it in the top 74.4%.
Is Lamar Advertising Co's Operating Margin % too high?
Lamar Advertising Co's current Operating Margin % of 25.28% is 13% below median its 10-year median of 28.90. Over the past 10 years, this metric has ranged from a low of 23.83 to a high of 31.74. The REITs industry median Operating Margin % is 52.67. Lamar Advertising Co's value of 25.28% is 52% below this industry median. Based on the distribution chart, Lamar Advertising Co ranks #558 out of 750 companies in the REITs industry, which is below the industry midpoint. Overall, Lamar Advertising Co has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Lamar Advertising Co's Operating Margin % compare to GLPI and WY?
According to the REITs industry distribution chart, Lamar Advertising Co ranks #558 out of 750 companies for Operating Margin %. This places Lamar Advertising Co in the lower half of its industry. The industry median Operating Margin % is 52.67. Lamar Advertising Co's value of 25.28% is 52% below this benchmark. Historically, Lamar Advertising Co's own Operating Margin % has ranged from 23.83 to 31.74 over the past decade. While the company's 10-year median is 28.90 vs. the industry median of 52.67, Lamar Advertising Co 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. Lamar Advertising Co's current Operating Margin % of 25.28% is 52% 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 Lamar Advertising Co 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. Lamar Advertising Co's current Operating Margin % is 25.28%, which is 13% below median its own 10-year median of 28.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lamar Advertising Co stock overvalued right now?
Lamar Advertising Co (MEX:LAMR) has a current Operating Margin % of 25.28%. The stock's GF Value™ is MXN1,834.65, compared to a current price of MXN2,200.00 — trading 19.9% above its estimated fair value. The current Operating Margin % is 25.28%, which is 13% below median its 10-year median of 28.90 and 52% below the REITs industry median of 52.67. Lamar Advertising Co's overall GF Score™ is 85/100 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 Lamar Advertising Co (MEX:LAMR), the current Operating Margin % is 25.28% 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 Lamar Advertising Co (MEX:LAMR) Overvalued in 2026?
Based on GuruFocus' analysis, Lamar Advertising Co stock appears to be overvalued.
The current stock price of MXN2,200.00 is trading 19.9% above its estimated GF Value™ of MXN1,834.65.
Key valuation signals for MEX:LAMR:
Operating Margin %: 25.28% (13% below median its 10-year median of 28.90)
GF Value™: MXN1,834.65 vs. price of MXN2,200.00 (19.9% above fair value)
Industry Position: 52% below the REITs median (#558 of 750)
No single metric tells the full story. See the MEX:LAMR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lamar Advertising Co is an outdoor advertising company that operates as a real estate investment trust. It is engaged in the outdoor advertising business, operating outdoor advertising displays and logo signs mainly near highway exits, delivering brand-name information on available gas, food, lodging, and camping services. Included in the company's logo sign business are tourism signing contracts. It also provides transit advertising services in airport terminals, on bus shelters, benches, and buses. The company manages its operations through three operating segments: Billboard, which generates maximum revenue, Logo, and Transit Advertising. Geographically, it operates in the United States and Canada.
85GF Score
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