Phillips EdisonPECO +1.44%79 Operating Margin % is 30.39% as of Mar. 2026, which is 67% above its 10-year median of 18.19. GuruFocus rates PECO with a GF Score™ of 79/100 and a GF Value™ of $39.98 (Fairly Valued). The stock has 7 warning signs investors should review. Among 750 REITs companies, Phillips Edison ranks worse than 76.27% 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.
Phillips Edison Operating Margin % Related Terms
Phillips Edison Operating Margin % Historical Data
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The historical data trend for Phillips Edison'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.
PECO vs KRG, SKT, MAC: Operating Margin % Comparison
For the REIT - Retail subindustry, Phillips Edison'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.
Phillips Edison Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Phillips Edison's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Phillips Edison'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.
Phillips Edison'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.
Phillips Edison (PECO) has a Operating Margin % of 30.39% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Phillips Edison and its competitors. This is 67% above median its historical median of 18.19. Over the past decade, Phillips Edison's Operating Margin % has ranged from 13.05 to 27.84. According to the industry distribution chart, Phillips Edison ranks #572 out of 750 companies in the REITs industry, placing it in the top 76.3%.
Is Phillips Edison's Operating Margin % too high?
Phillips Edison's current Operating Margin % of 30.39% is 67% above median its 10-year median of 18.19. Over the past 10 years, this metric has ranged from a low of 13.05 to a high of 27.84. The REITs industry median Operating Margin % is 52.67. Phillips Edison's value of 30.39% is 42.3% below this industry median. Based on the distribution chart, Phillips Edison ranks #572 out of 750 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Phillips Edison has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Phillips Edison's Operating Margin % compare to KRG and SKT?
According to the REITs industry distribution chart, Phillips Edison ranks #572 out of 750 companies for Operating Margin %. This places Phillips Edison in the lower half of its industry. The industry median Operating Margin % is 52.67. Phillips Edison's value of 30.39% is 42.3% below this benchmark. Historically, Phillips Edison's own Operating Margin % has ranged from 13.05 to 27.84 over the past decade. While the company's 10-year median is 18.19 vs. the industry median of 52.67, Phillips Edison 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. Phillips Edison's current Operating Margin % of 30.39% is 42.3% 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 Phillips Edison 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. Phillips Edison's current Operating Margin % is 30.39%, which is 67% above median its own 10-year median of 18.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Phillips Edison stock overvalued right now?
Based on GuruFocus' analysis, Phillips Edison (PECO) is currently considered Fairly Valued. The stock's GF Value™ is $39.98, compared to a current price of $42.39 — trading 6% above its estimated fair value. The current Operating Margin % is 30.39%, which is 67% above median its 10-year median of 18.19 and 42.3% below the REITs industry median of 52.67. Phillips Edison's overall GF Score™ is 79/100 with 7 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 Phillips Edison (PECO), the current Operating Margin % is 30.39% 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 Phillips Edison (PECO) Overvalued in 2026?
Based on GuruFocus' analysis, Phillips Edison stock appears to be overvalued.
The current stock price of $42.39 is trading 6% above its estimated GF Value™ of $39.98.
GuruFocus considers Phillips Edison to be Fairly Valued.
Key valuation signals for PECO:
Operating Margin %: 30.39% (67% above median its 10-year median of 18.19)
GF Value™: $39.98 vs. price of $42.39 (6% above fair value)
Industry Position: 42.3% below the REITs median (#572 of 750)
No single metric tells the full story. See the PECO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Phillips Edison & Co Inc is a real estate investment trust. The company also operates a third-party investment management business providing property management and advisory services to four unconsolidated institutional joint ventures, in which it has a partial ownership interest, and one private fund. It invests in well-occupied, grocery-anchored neighborhood and community shopping centers. It holds an integrated in-house operating platform built on a market of expertise designed to optimize property value and consistently deliver a great shopping experience.
79GF Score
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