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Piedmont Realty TrustPDM -2.71%66 Operating Margin % is 14.29% as of Jun. 2026, which is 10% below its 10-year median of 15.95. GuruFocus rates PDM with a GF Score™ of 66/100 and a GF Value™ of $7.56 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 734 REITs companies, Piedmont Realty Trust ranks worse than 85.42% on this metric.
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.
Piedmont Realty Trust Operating Margin % Related Terms
Piedmont Realty Trust Operating Margin % Historical Data
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The historical data trend for Piedmont Realty Trust's Operating Margin % can be seen below:
* 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.
PDM vs DEA, ESBA, HPP: Operating Margin % Comparison
For the REIT - Office subindustry, Piedmont Realty Trust'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.
Piedmont Realty Trust Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Piedmont Realty Trust's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Piedmont Realty Trust's Operating Margin % falls into.
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.
Piedmont Realty Trust'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.
Piedmont Realty Trust (PDM) has a Operating Margin % of 14.29% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Piedmont Realty Trust and its competitors. This is 10% below median its historical median of 15.95. Over the past decade, Piedmont Realty Trust's Operating Margin % has ranged from 13.02 to 22.25. According to the industry distribution chart, Piedmont Realty Trust ranks #627 out of 734 companies in the REITs industry, placing it in the top 85.4%.
Is Piedmont Realty Trust's Operating Margin % too high?
Piedmont Realty Trust's current Operating Margin % of 14.29% is 10% below median its 10-year median of 15.95. Over the past 10 years, this metric has ranged from a low of 13.02 to a high of 22.25. The REITs industry median Operating Margin % is 52.65. Piedmont Realty Trust's value of 14.29% is 72.9% below this industry median. Based on the distribution chart, Piedmont Realty Trust ranks #627 out of 734 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Piedmont Realty Trust has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Piedmont Realty Trust's Operating Margin % compare to DEA and ESBA?
According to the REITs industry distribution chart, Piedmont Realty Trust ranks #627 out of 734 companies for Operating Margin %. This places Piedmont Realty Trust in the lower half of its industry. The industry median Operating Margin % is 52.65. Piedmont Realty Trust's value of 14.29% is 72.9% below this benchmark. Historically, Piedmont Realty Trust's own Operating Margin % has ranged from 13.02 to 22.25 over the past decade. While the company's 10-year median is 15.95 vs. the industry median of 52.65, Piedmont Realty Trust 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 52.65, based on 734 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. Piedmont Realty Trust's current Operating Margin % of 14.29% is 72.9% 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 Piedmont Realty Trust and its competitors. For the REITs industry, the median Operating Margin % is 52.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Piedmont Realty Trust's current Operating Margin % is 14.29%, which is 10% below median its own 10-year median of 15.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Piedmont Realty Trust stock overvalued right now?
Based on GuruFocus' analysis, Piedmont Realty Trust (PDM) is currently considered Modestly Overvalued. The stock's GF Value™ is $7.56, compared to a current price of $9.69 — trading 28.2% above its estimated fair value. The current Operating Margin % is 14.29%, which is 10% below median its 10-year median of 15.95 and 72.9% below the REITs industry median of 52.65. Piedmont Realty Trust's overall GF Score™ is 66/100 with 10 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 Piedmont Realty Trust (PDM), the current Operating Margin % is 14.29% 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 Piedmont Realty Trust (PDM) Overvalued in 2026?
Based on GuruFocus' analysis, Piedmont Realty Trust stock appears to be overvalued.
The current stock price of $9.69 is trading 28.2% above its estimated GF Value™ of $7.56.
GuruFocus considers Piedmont Realty Trust to be Modestly Overvalued.
Key valuation signals for PDM:
Operating Margin %: 14.29% (10% below median its 10-year median of 15.95)
GF Value™: $7.56 vs. price of $9.69 (28.2% above fair value)
Industry Position: 72.9% below the REITs median (#627 of 734)
No single metric tells the full story. See the PDM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Piedmont Realty Trust Inc is a fully integrated, self-managed real estate investment company focused on delivering an exceptional office environment. As an owner, manager, developer and operator of 16 MM SF of Class A properties across U.S. Sunbelt markets, Piedmont Realty Trust is known for its hospitality-driven approach and commitment to transforming buildings into Piedmont PLACEs that enhance each client's workplace experience.
66GF Score
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