Net Lease Office PropertiesNLOP -2.05%46 Operating Margin % is 33.61% as of Mar. 2026, which is 13% above its 10-year median of 29.70. GuruFocus rates NLOP with a GF Score™ of 46/100 and a GF Value™ of $16.68 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 750 REITs companies, Net Lease Office Properties ranks worse than 74.53% on this metric.
Net Lease Office Properties (NYSE:NLOP) 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.
Net Lease Office Properties Operating Margin % Related Terms
Net Lease Office Properties 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.
Net Lease Office Properties Operating Margin % Chart
NLOP vs ONL, FSP, CMCT: Operating Margin % Comparison
For the REIT - Office subindustry, Net Lease Office 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.
Net Lease Office Properties Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Net Lease Office Properties's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Net Lease Office Properties's Operating Margin % falls into.
Net Lease Office Properties 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.
Net Lease Office 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.
Net Lease Office Properties (NLOP) has a Operating Margin % of 33.61% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Net Lease Office Properties and its competitors. This is 13% above median its historical median of 29.70. Over the past decade, Net Lease Office Properties' Operating Margin % has ranged from 22.90 to 34.40. According to the industry distribution chart, Net Lease Office Properties ranks #559 out of 750 companies in the REITs industry, placing it in the top 74.5%.
Is Net Lease Office Properties' Operating Margin % too high?
Net Lease Office Properties' current Operating Margin % of 33.61% is 13% above median its 10-year median of 29.70. Over the past 10 years, this metric has ranged from a low of 22.90 to a high of 34.40. The REITs industry median Operating Margin % is 52.67. Net Lease Office Properties' value of 33.61% is 36.2% below this industry median. Based on the distribution chart, Net Lease Office Properties ranks #559 out of 750 companies in the REITs industry, which is below the industry midpoint. Overall, Net Lease Office Properties has a GF Score™ of 46/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Net Lease Office Properties' Operating Margin % compare to ONL and FSP?
According to the REITs industry distribution chart, Net Lease Office Properties ranks #559 out of 750 companies for Operating Margin %. This places Net Lease Office Properties in the lower half of its industry. The industry median Operating Margin % is 52.67. Net Lease Office Properties' value of 33.61% is 36.2% below this benchmark. Historically, Net Lease Office Properties' own Operating Margin % has ranged from 22.90 to 34.40 over the past decade. While the company's 10-year median is 29.70 vs. the industry median of 52.67, Net Lease Office 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 52.67, 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. Net Lease Office Properties's current Operating Margin % of 33.61% is 36.2% 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 Net Lease Office Properties 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. Net Lease Office Properties's current Operating Margin % is 33.61%, which is 13% above median its own 10-year median of 29.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Net Lease Office Properties stock overvalued right now?
Based on GuruFocus' analysis, Net Lease Office Properties (NLOP) is currently considered Possible Value Trap. The stock's GF Value™ is $16.68, compared to a current price of $11.22 — trading 32.8% below its estimated fair value. The current Operating Margin % is 33.61%, which is 13% above median its 10-year median of 29.70 and 36.2% below the REITs industry median of 52.67. Net Lease Office Properties' overall GF Score™ is 46/100 with 6 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 Net Lease Office Properties (NLOP), the current Operating Margin % is 33.61% 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 Net Lease Office Properties (NLOP) Overvalued in 2026?
Based on GuruFocus' analysis, Net Lease Office Properties stock appears to be undervalued.
The current stock price of $11.22 is trading 32.8% below its estimated GF Value™ of $16.68.
GuruFocus considers Net Lease Office Properties to be Possible Value Trap.
Key valuation signals for NLOP:
Operating Margin %: 33.61% (13% above median its 10-year median of 29.70)
GF Value™: $16.68 vs. price of $11.22 (32.8% below fair value)
Industry Position: 36.2% below the REITs median (#559 of 750)
No single metric tells the full story. See the NLOP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Net Lease Office Properties is a Maryland real estate investment trust that, together with its consolidated subsidiaries, owns, operates, and finances a diversified portfolio of office properties mainly leased to corporate tenants on a single-tenant, net-lease basis. The company operates as a single operating and reportable segment focused on owning and managing office properties that generate revenue mainly from long-term lease agreements with tenants.
46GF Score
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