Japan Hotel REIT InvestmentNIPOF 75 Operating Margin % is 68.91% as of Dec. 2025, which is 13% above its 10-year median of 61.25. GuruFocus rates NIPOF with a GF Score™ of 75/100 and a GF Value™ of $755.11 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 750 REITs companies, Japan Hotel REIT Investment ranks better than 75.07% on this metric.
Japan Hotel REIT Investment (OTCPK:NIPOF) 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.
Japan Hotel REIT Investment Operating Margin % Related Terms
Japan Hotel REIT Investment 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.
Japan Hotel REIT Investment Operating Margin % Chart
NIPOF vs HST, RHP, APLE: Operating Margin % Comparison
For the REIT - Hotel & Motel subindustry, Japan Hotel REIT Investment'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.
Japan Hotel REIT Investment Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Japan Hotel REIT Investment's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Japan Hotel REIT Investment's Operating Margin % falls into.
Japan Hotel REIT Investment 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.
Japan Hotel REIT Investment'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.
Japan Hotel REIT Investment (NIPOF) has a Operating Margin % of 68.91% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Japan Hotel REIT Investment and its competitors. This is 13% above median its historical median of 61.25. Over the past decade, Japan Hotel REIT Investment's Operating Margin % has ranged from 21.71 to 68.15. According to the industry distribution chart, Japan Hotel REIT Investment ranks #187 out of 750 companies in the REITs industry, placing it in the top 24.9%.
Is Japan Hotel REIT Investment's Operating Margin % too high?
Japan Hotel REIT Investment's current Operating Margin % of 68.91% is 13% above median its 10-year median of 61.25. Over the past 10 years, this metric has ranged from a low of 21.71 to a high of 68.15. The REITs industry median Operating Margin % is 52.67. Japan Hotel REIT Investment's value of 68.91% is 30.8% above this industry median. Based on the distribution chart, Japan Hotel REIT Investment ranks #187 out of 750 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Japan Hotel REIT Investment has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Japan Hotel REIT Investment's Operating Margin % compare to HST and RHP?
According to the REITs industry distribution chart, Japan Hotel REIT Investment ranks #187 out of 750 companies for Operating Margin %. This places Japan Hotel REIT Investment in the top 25% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 52.67. Japan Hotel REIT Investment's value of 68.91% is 30.8% above this benchmark. Historically, Japan Hotel REIT Investment's own Operating Margin % has ranged from 21.71 to 68.15 over the past decade. While the company's 10-year median is 61.25 vs. the industry median of 52.67, Japan Hotel REIT Investment has consistently been above 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. Japan Hotel REIT Investment's current Operating Margin % of 68.91% is 30.8% above 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 Japan Hotel REIT Investment 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. Japan Hotel REIT Investment's current Operating Margin % is 68.91%, which is 13% above median its own 10-year median of 61.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Hotel REIT Investment stock overvalued right now?
Based on GuruFocus' analysis, Japan Hotel REIT Investment (NIPOF) is currently considered Possible Value Trap. The stock's GF Value™ is $755.11, compared to a current price of $471.74 — trading 37.5% below its estimated fair value. The current Operating Margin % is 68.91%, which is 13% above median its 10-year median of 61.25 and 30.8% above the REITs industry median of 52.67. Japan Hotel REIT Investment's overall GF Score™ is 75/100 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 Japan Hotel REIT Investment (NIPOF), the current Operating Margin % is 68.91% as of Dec. 2025. 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 Japan Hotel REIT Investment (NIPOF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Hotel REIT Investment stock appears to be undervalued.
The current stock price of $471.74 is trading 37.5% below its estimated GF Value™ of $755.11.
GuruFocus considers Japan Hotel REIT Investment to be Possible Value Trap.
Key valuation signals for NIPOF:
Operating Margin %: 68.91% (13% above median its 10-year median of 61.25)
GF Value™: $755.11 vs. price of $471.74 (37.5% below fair value)
Industry Position: 30.8% above the REITs median (#187 of 750)
No single metric tells the full story. See the NIPOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Hotel REIT Investment Corp is a real estate investment trust. It aims to achieve stable earnings and sustainable growth in the asset from mid- to long-term perspectives. The company invests in business hotels, resort hotels, and city hotels, mainly located in the metropolitan areas and other cities of Japan.
75GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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