New England Realty Associates LP (AMEX:NEN) 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 NokiaÂ’s 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.
New England Realty Associates LP Operating Margin % Related Terms
New England Realty Associates LP 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.
New England Realty Associates LP Operating Margin % Chart
NEN vs RMAX, ARL, DOUG: Operating Margin % Comparison
For the Real Estate Services subindustry, New England Realty Associates LP'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.
New England Realty Associates LP Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, New England Realty Associates LP's Operating Margin % distribution charts can be found below:
* The bar in red indicates where New England Realty Associates LP's Operating Margin % falls into.
New England Realty Associates LP 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.
New England Realty Associates LP (NEN) has a Operating Margin % of 6.19% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on New England Realty Associates LP and its competitors. This is 77% below median its historical median of 26.53. Over the past decade, New England Realty Associates LP's Operating Margin % has ranged from 18.36 to 31.50. According to the industry distribution chart, New England Realty Associates LP ranks #719 out of 1745 companies in the Real Estate industry, placing it in the top 41.2%.
Is New England Realty Associates LP's Operating Margin % too high?
New England Realty Associates LP's current Operating Margin % of 6.19% is 77% below median its 10-year median of 26.53. Over the past 10 years, this metric has ranged from a low of 18.36 to a high of 31.50. The Real Estate industry median Operating Margin % is 13.23. New England Realty Associates LP's value of 6.19% is 53.2% below this industry median. Based on the distribution chart, New England Realty Associates LP ranks #719 out of 1745 companies in the Real Estate industry, which is above the industry midpoint. Overall, New England Realty Associates LP has a GF Scoreâ„¢ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does New England Realty Associates LP's Operating Margin % compare to RMAX and ARL?
According to the Real Estate industry distribution chart, New England Realty Associates LP ranks #719 out of 1745 companies for Operating Margin %. This puts New England Realty Associates LP in the upper half of its industry. The industry median Operating Margin % is 13.23. New England Realty Associates LP's value of 6.19% is 53.2% below this benchmark. Historically, New England Realty Associates LP's own Operating Margin % has ranged from 18.36 to 31.50 over the past decade. While the company's 10-year median is 26.53 vs. the industry median of 13.23, New England Realty Associates LP 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.23, based on 1,745 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. New England Realty Associates LP's current Operating Margin % of 6.19% is 53.2% 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 New England Realty Associates LP and its competitors. For the Real Estate industry, the median Operating Margin % is 13.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New England Realty Associates LP's current Operating Margin % is 6.19%, which is 77% below median its own 10-year median of 26.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New England Realty Associates LP stock overvalued right now?
Based on GuruFocus' analysis, New England Realty Associates LP (NEN) is currently considered Possible Value Trap. The stock's GF Value™ is $91.43, compared to a current price of $59.60 — trading 34.8% below its estimated fair value. The current Operating Margin % is 6.19%, which is 77% below median its 10-year median of 26.53 and 53.2% below the Real Estate industry median of 13.23. New England Realty Associates LP's overall GF Score™ is 64/100 with 5 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 New England Realty Associates LP (NEN), the current Operating Margin % is 6.19% 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 New England Realty Associates LP (NEN) Overvalued in 2026?
Based on GuruFocus' analysis, New England Realty Associates LP stock appears to be undervalued.
The current stock price of $59.60 is trading 34.8% below its estimated GF Value™ of $91.43.
GuruFocus considers New England Realty Associates LP to be Possible Value Trap.
Key valuation signals for NEN:
Operating Margin %: 6.19% (77% below median its 10-year median of 26.53)
GF Value™: $91.43 vs. price of $59.60 (34.8% below fair value)
Industry Position: 53.2% below the Real Estate median (#719 of 1745)
No single metric tells the full story. See the NEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New England Realty Associates LP Business Description
New England Realty Associates LP is engaged in the business of acquiring, developing, holding for investment, operating, and selling real estate. The Partnership owns and operates various residential apartments, condominium units, and commercial properties located in Massachusetts and New Hampshire. The company generates revenue from rental income from residential and commercial properties recognized over the term of the related lease. The long-term goals of the Partnership are to manage, rent, and improve its properties and to acquire additional properties with income and capital appreciation potential as suitable opportunities arise.
64GF Score
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