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The historical rank and industry rank for Annaly Capital Management's Operating Margin % or its related term are showing as below:
NLY's Operating Margin % is not ranked *
in the REITs industry.
Industry Median: 52.58 * Ranked among companies with meaningful Operating Margin % only.
Annaly Capital Management (NYSE:NLY) 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.
Annaly Capital Management Operating Margin % Related Terms
Annaly Capital Management 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.
Annaly Capital Management Operating Margin % Chart
NLY vs AGNC, STWD, RITM: Operating Margin % Comparison
For the REIT - Mortgage subindustry, Annaly Capital Management'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.
Annaly Capital Management Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Annaly Capital Management's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Annaly Capital Management's Operating Margin % falls into.
Annaly Capital Management 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.
Annaly Capital Management'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.
Annaly Capital Management (NLY) has a Operating Margin % of 89.43% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Annaly Capital Management and its competitors. According to the industry distribution chart, Annaly Capital Management ranks #999999 out of 735 companies in the REITs industry.
Is Annaly Capital Management's Operating Margin % too high?
Annaly Capital Management's current Operating Margin % is 89.43%. The REITs industry median Operating Margin % is 52.58. Annaly Capital Management's value of 89.43% is 70.1% above this industry median. Based on the distribution chart, Annaly Capital Management ranks #999999 out of 735 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Annaly Capital Management has a GF Score™ of 47/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Annaly Capital Management's Operating Margin % compare to AGNC and STWD?
According to the REITs industry distribution chart, Annaly Capital Management ranks #999999 out of 735 companies for Operating Margin %. This places Annaly Capital Management in the lower half of its industry. The industry median Operating Margin % is 52.58. Annaly Capital Management's value of 89.43% is 70.1% above this benchmark. 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 52.58, based on 735 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. Annaly Capital Management's current Operating Margin % of 89.43% is 70.1% 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 Annaly Capital Management and its competitors. For the REITs industry, the median Operating Margin % is 52.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Annaly Capital Management's current Operating Margin % is 89.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Annaly Capital Management stock overvalued right now?
Based on GuruFocus' analysis, Annaly Capital Management (NLY) is currently considered Modestly Overvalued. The stock's GF Value™ is $17.70, compared to a current price of $21.30 — trading 20.3% above its estimated fair value. The current Operating Margin % is 89.43% and 70.1% above the REITs industry median of 52.58. Annaly Capital Management's overall GF Score™ is 47/100 with 8 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 Annaly Capital Management (NLY), the current Operating Margin % is 89.43% as of Jun. 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 Annaly Capital Management (NLY) Overvalued in 2026?
Based on GuruFocus' analysis, Annaly Capital Management stock appears to be overvalued.
The current stock price of $21.30 is trading 20.3% above its estimated GF Value™ of $17.70.
GuruFocus considers Annaly Capital Management to be Modestly Overvalued.
Key valuation signals for NLY:
Operating Margin %: 89.43%
GF Value™: $17.70 vs. price of $21.30 (20.3% above fair value)
Industry Position: 70.1% above the REITs median (#999999 of 735)
No single metric tells the full story. See the NLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Annaly Capital Management Inc is an American mortgage real estate investment trust. Its business objective is to generate net income for distribution to its stockholders and optimize its returns through prudent management of its diversified investment strategies. The company's reportable operating segments are: the Agency segment, which invests in Agency mortgage-backed securities collateralized by residential mortgages; the Residential Credit segment, which invests in non-Agency residential whole loans and securitized products within the residential and commercial markets; the Mortgage Servicing Rights segment; and Corporate & Other. Maximum revenue for the company is generated from its Agency segment.
47GF Score
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