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National Health Investors (MEX:NHI) 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.
National Health Investors Operating Margin % Related Terms
National Health Investors 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.
National Health Investors Operating Margin % Chart
MEX:NHI vs MPT, SBRA, DHC: Operating Margin % Comparison
For the REIT - Healthcare Facilities subindustry, National Health Investors'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.
National Health Investors Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, National Health Investors's Operating Margin % distribution charts can be found below:
* The bar in red indicates where National Health Investors's Operating Margin % falls into.
National Health Investors 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.
National Health Investors'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.
National Health Investors (MEX:NHI) has a Operating Margin % of 45.25% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on National Health Investors and its competitors. This is 30% below median its historical median of 64.80. Over the past decade, National Health Investors' Operating Margin % has ranged from 47.72 to 71.53. According to the industry distribution chart, National Health Investors ranks #426 out of 742 companies in the REITs industry, placing it in the top 57.4%.
Is National Health Investors' Operating Margin % too high?
National Health Investors' current Operating Margin % of 45.25% is 30% below median its 10-year median of 64.80. Over the past 10 years, this metric has ranged from a low of 47.72 to a high of 71.53. The REITs industry median Operating Margin % is 52.74. National Health Investors' value of 45.25% is 14.2% below this industry median. Based on the distribution chart, National Health Investors ranks #426 out of 742 companies in the REITs industry, which is below the industry midpoint. Overall, National Health Investors has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does National Health Investors' Operating Margin % compare to MPT and SBRA?
According to the REITs industry distribution chart, National Health Investors ranks #426 out of 742 companies for Operating Margin %. This places National Health Investors in the lower half of its industry. The industry median Operating Margin % is 52.74. National Health Investors' value of 45.25% is 14.2% below this benchmark. Historically, National Health Investors' own Operating Margin % has ranged from 47.72 to 71.53 over the past decade. While the company's 10-year median is 64.80 vs. the industry median of 52.74, National Health Investors 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 52.74, based on 742 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. National Health Investors's current Operating Margin % of 45.25% is 14.2% 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 National Health Investors and its competitors. For the REITs industry, the median Operating Margin % is 52.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. National Health Investors's current Operating Margin % is 45.25%, which is 30% below median its own 10-year median of 64.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is National Health Investors stock overvalued right now?
National Health Investors (MEX:NHI) has a current Operating Margin % of 45.25%. The stock's GF Value™ is MXN1,502.86, compared to a current price of MXN1,484.43 — trading 1.2% below its estimated fair value. The current Operating Margin % is 45.25%, which is 30% below median its 10-year median of 64.80 and 14.2% below the REITs industry median of 52.74. National Health Investors' overall GF Score™ is 83/100 with 4 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 National Health Investors (MEX:NHI), the current Operating Margin % is 45.25% 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 National Health Investors (MEX:NHI) Overvalued in 2026?
Based on GuruFocus' analysis, National Health Investors stock appears to be undervalued.
The current stock price of MXN1,484.43 is trading 1.2% below its estimated GF Value™ of MXN1,502.86.
Key valuation signals for MEX:NHI:
Operating Margin %: 45.25% (30% below median its 10-year median of 64.80)
GF Value™: MXN1,502.86 vs. price of MXN1,484.43 (1.2% below fair value)
Industry Position: 14.2% below the REITs median (#426 of 742)
No single metric tells the full story. See the MEX:NHI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
National Health Investors Inc is a self-managed REIT that owns, leases, operates, and finances the development of senior housing communities and medical facilities. It operates through two segments: Real Estate Investments and Senior Housing Operating Portfolio (SHOP). The Real Estate Investments segment, which generates the majority of revenue, includes real estate leases, mortgages, and other notes receivable related to independent living facilities, assisted living facilities, entrance fee communities, senior living campuses, skilled nursing facilities, and a hospital. The SHOP segment consists of ventures that own and operate independent living facilities. The company's revenues are derived from rental income, interest and other income, and resident fees and services.
83GF Score
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