Premiere Island Power REITPHS:PREIT +1.74%58 Operating Margin % is 76.84% as of Mar. 2026, which is 10% below its 10-year median of 85.32. GuruFocus rates PHS:PREIT with a GF Score™ of 58/100 and a GF Value™ of ₱1.64 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 749 REITs companies, Premiere Island Power REIT ranks worse than 89.45% on this metric.
Premiere Island Power REIT (PHS:PREIT) 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.
Premiere Island Power REIT Operating Margin % Related Terms
Premiere Island Power REIT 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.
Premiere Island Power REIT Operating Margin % Chart
PHS:PREIT vs EQIX, AMT, DLR: Operating Margin % Comparison
For the REIT - Specialty subindustry, Premiere Island Power REIT'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.
Premiere Island Power REIT Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Premiere Island Power REIT's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Premiere Island Power REIT's Operating Margin % falls into.
Premiere Island Power REIT 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.
Premiere Island Power REIT'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.
Premiere Island Power REIT (PHS:PREIT) has a Operating Margin % of 76.84% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Premiere Island Power REIT and its competitors. This is 10% below median its historical median of 85.32. Over the past decade, Premiere Island Power REIT's Operating Margin % has ranged from 8.48 to 88.28. According to the industry distribution chart, Premiere Island Power REIT ranks #670 out of 749 companies in the REITs industry, placing it in the top 89.5%.
Is Premiere Island Power REIT's Operating Margin % too high?
Premiere Island Power REIT's current Operating Margin % of 76.84% is 10% below median its 10-year median of 85.32. Over the past 10 years, this metric has ranged from a low of 8.48 to a high of 88.28. The REITs industry median Operating Margin % is 52.71. Premiere Island Power REIT's value of 76.84% is 45.8% above this industry median. Based on the distribution chart, Premiere Island Power REIT ranks #670 out of 749 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Premiere Island Power REIT has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Premiere Island Power REIT's Operating Margin % compare to EQIX and AMT?
According to the REITs industry distribution chart, Premiere Island Power REIT ranks #670 out of 749 companies for Operating Margin %. This places Premiere Island Power REIT in the lower half of its industry. The industry median Operating Margin % is 52.71. Premiere Island Power REIT's value of 76.84% is 45.8% above this benchmark. Historically, Premiere Island Power REIT's own Operating Margin % has ranged from 8.48 to 88.28 over the past decade. While the company's 10-year median is 85.32 vs. the industry median of 52.71, Premiere Island Power REIT has consistently been above 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 52.71, based on 749 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. Premiere Island Power REIT's current Operating Margin % of 76.84% is 45.8% 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 Premiere Island Power REIT and its competitors. For the REITs industry, the median Operating Margin % is 52.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Premiere Island Power REIT's current Operating Margin % is 76.84%, which is 10% below median its own 10-year median of 85.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Premiere Island Power REIT stock overvalued right now?
Based on GuruFocus' analysis, Premiere Island Power REIT (PHS:PREIT) is currently considered Modestly Undervalued. The stock's GF Value™ is ₱1.64, compared to a current price of ₱1.17 — trading 28.7% below its estimated fair value. The current Operating Margin % is 76.84%, which is 10% below median its 10-year median of 85.32 and 45.8% above the REITs industry median of 52.71. Premiere Island Power REIT's overall GF Score™ is 58/100 with 2 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 Premiere Island Power REIT (PHS:PREIT), the current Operating Margin % is 76.84% 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 Premiere Island Power REIT (PHS:PREIT) Overvalued in 2026?
Based on GuruFocus' analysis, Premiere Island Power REIT stock appears to be undervalued.
The current stock price of ₱1.17 is trading 28.7% below its estimated GF Value™ of ₱1.64.
GuruFocus considers Premiere Island Power REIT to be Modestly Undervalued.
Key valuation signals for PHS:PREIT:
Operating Margin %: 76.84% (10% below median its 10-year median of 85.32)
GF Value™: ₱1.64 vs. price of ₱1.17 (28.7% below fair value)
Industry Position: 45.8% above the REITs median (#670 of 749)
No single metric tells the full story. See the PHS:PREIT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Premiere Island Power REIT Corp operates as a real estate investment trust, holding assets that operate in the power generation industry. The principal mandate is to invest on a long-term basis in critical real estate and infrastructure that will expand its portfolio and will also enable the company to attain its objective of meaningfully contributing to the promotion of clean, renewable, and sustainable energy, as well as continue its progress on expanding social and missionary electrification. The REIT's only income-generating activity is the lease of its land, right-of-use asset, buildings, and generation asset. The REIT derives its rental income from SIPCOR and CAMPCOR.
58GF Score
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