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.
Plymouth Industrial REIT Operating Margin % Related Terms
Plymouth Industrial 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.
PLYM vs IIPR, ILPT, MDV: Operating Margin % Comparison
For the REIT - Industrial subindustry, Plymouth Industrial 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.
Plymouth Industrial REIT Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Plymouth Industrial REIT's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Plymouth Industrial REIT'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.
Plymouth Industrial REIT's Operating Margin % for the fiscal year that ended in Dec. 2024 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.
Plymouth Industrial REIT (PLYM) has a Operating Margin % of 16.44% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Plymouth Industrial REIT and its competitors. This is 278% above median its historical median of 4.35.
Is Plymouth Industrial REIT's Operating Margin % too high?
Plymouth Industrial REIT's current Operating Margin % of 16.44% is 278% above median its 10-year median of 4.35. The REITs industry median Operating Margin % is 52.67. Plymouth Industrial REIT's value of 16.44% is 68.8% below this industry median. Overall, Plymouth Industrial REIT has a GF Score™ of 54/100, reflecting its overall financial health beyond just this single metric.
How does Plymouth Industrial REIT's Operating Margin % compare to IIPR and ILPT?
Plymouth Industrial REIT's Operating Margin % of 16.44% can be compared against companies in the REITs industry. The industry median Operating Margin % is 52.67. Plymouth Industrial REIT's value of 16.44% is 68.8% below this benchmark. While the company's 10-year median is 4.35 vs. the industry median of 52.67, Plymouth Industrial REIT 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. Plymouth Industrial REIT's current Operating Margin % of 16.44% is 68.8% 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 Plymouth Industrial REIT 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. Plymouth Industrial REIT's current Operating Margin % is 16.44%, which is 278% above median its own 10-year median of 4.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Plymouth Industrial REIT stock overvalued right now?
Plymouth Industrial REIT (PLYM) has a current Operating Margin % of 16.44%. The stock's GF Value™ is $20.52, compared to a current price of $21.98 — trading 7.1% above its estimated fair value. The current Operating Margin % is 16.44%, which is 278% above median its 10-year median of 4.35 and 68.8% below the REITs industry median of 52.67. Plymouth Industrial REIT's overall GF Score™ is 54/100 with 11 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 Plymouth Industrial REIT (PLYM), the current Operating Margin % is 16.44% as of Sep. 2025. 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 Plymouth Industrial REIT (PLYM) Overvalued in 2026?
Based on GuruFocus' analysis, Plymouth Industrial REIT stock appears to be overvalued.
The current stock price of $21.98 is trading 7.1% above its estimated GF Value™ of $20.52.
Key valuation signals for PLYM:
Operating Margin %: 16.44% (278% above median its 10-year median of 4.35)
GF Value™: $20.52 vs. price of $21.98 (7.1% above fair value)
No single metric tells the full story. See the PLYM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Plymouth Industrial REIT Inc is a full-service, vertically integrated, self-administered, and self-managed Maryland corporation. It is focused on the acquisition, ownership, and management of single and multi-tenant Class B industrial properties, including distribution centers, warehouses, and light industrial properties, located in secondary and primary markets across the United States. The company has one reportable segment, which is Industrial properties. The majority of its property portfolio is spread across Florida, Ohio, Indiana, Tennessee, Illinois and Georgia, among others. It receives income from the rental revenue through its properties.
54GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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