Philippine EstatesPHS:PHES -9.89%46 Operating Margin % is 4.70% as of Mar. 2026, which is 72% below its 10-year median of 16.82. GuruFocus rates PHS:PHES with a GF Score™ of 46/100 and a GF Value™ of ₱0.25 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,745 Real Estate companies, Philippine Estates ranks worse than 86.36% 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.
Philippine Estates Operating Margin % Related Terms
Philippine Estates Operating Margin % Historical Data
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The historical data trend for Philippine Estates'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.
PHS:PHES vs CBRE, BEKE: Operating Margin % Comparison
For the Real Estate Services subindustry, Philippine Estates'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.
Philippine Estates Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Philippine Estates's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Philippine Estates'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.
Philippine Estates'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.
Philippine Estates (PHS:PHES) has a Operating Margin % of 4.70% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Philippine Estates and its competitors. This is 72% below median its historical median of 16.82. According to the industry distribution chart, Philippine Estates ranks #1507 out of 1745 companies in the Real Estate industry, placing it in the top 86.4%.
Is Philippine Estates' Operating Margin % too high?
Philippine Estates' current Operating Margin % of 4.70% is 72% below median its 10-year median of 16.82. The Real Estate industry median Operating Margin % is 13.21. Philippine Estates' value of 4.70% is 64.4% below this industry median. Based on the distribution chart, Philippine Estates ranks #1507 out of 1745 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Philippine Estates has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Philippine Estates' Operating Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Philippine Estates ranks #1507 out of 1745 companies for Operating Margin %. This places Philippine Estates in the lower half of its industry. The industry median Operating Margin % is 13.21. Philippine Estates' value of 4.70% is 64.4% below this benchmark. While the company's 10-year median is 16.82 vs. the industry median of 13.21, Philippine Estates 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.21, based on 1,745 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. Philippine Estates's current Operating Margin % of 4.70% is 64.4% 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 Philippine Estates and its competitors. For the Real Estate industry, the median Operating Margin % is 13.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Philippine Estates's current Operating Margin % is 4.70%, which is 72% below median its own 10-year median of 16.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Philippine Estates stock overvalued right now?
Based on GuruFocus' analysis, Philippine Estates (PHS:PHES) is currently considered Significantly Overvalued. The stock's GF Value™ is ₱0.25, compared to a current price of ₱0.41 — trading 64% above its estimated fair value. The current Operating Margin % is 4.70%, which is 72% below median its 10-year median of 16.82 and 64.4% below the Real Estate industry median of 13.21. Philippine Estates' overall GF Score™ is 46/100 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 Philippine Estates (PHS:PHES), the current Operating Margin % is 4.70% 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 Philippine Estates (PHS:PHES) Overvalued in 2026?
Based on GuruFocus' analysis, Philippine Estates stock appears to be overvalued.
The current stock price of ₱0.41 is trading 64% above its estimated GF Value™ of ₱0.25.
GuruFocus considers Philippine Estates to be Significantly Overvalued.
Key valuation signals for PHS:PHES:
Operating Margin %: 4.70% (72% below median its 10-year median of 16.82)
GF Value™: ₱0.25 vs. price of ₱0.41 (64% above fair value)
Industry Position: 64.4% below the Real Estate median (#1507 of 1745)
No single metric tells the full story. See the PHS:PHES stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Philippine Estates Corp is principally engaged in the business of holding and developing real estate or other properties for industrial, commercial, residential, leisure or sports purposes, and in pursuance thereof, to acquire by purchase, lease or otherwise, real estate and/or appurtenant properties and/or interest therein. The Group classifies business segments based on location of its real property projects as in the following geographical areas: a) Metro Manila: industrial park and condominium projects, b) Bulacan: subdivision, mixed use, c) Other Luzon Areas such as Cavite: subdivision development, d) Cebu: subdivision, mixed use and condominium projects, e) Iloilo: subdivision, mixed use and condominium projects, f) Davao: administrative office. Key revenue is derived from Iloilo.
46GF Score
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