Portsmouth SquarePRSI 58 Operating Margin % is 23.88% as of Mar. 2026, which is 205% above its 10-year median of 7.82. GuruFocus rates PRSI with a GF Score™ of 58/100 and a GF Value™ of $4.05 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 844 Travel & Leisure companies, Portsmouth Square ranks better than 63.86% 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.
Portsmouth Square Operating Margin % Related Terms
Portsmouth Square Operating Margin % Historical Data
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The historical data trend for Portsmouth Square'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.
PRSI vs UOKAF, SONDQ, MAR: Operating Margin % Comparison
For the Lodging subindustry, Portsmouth Square'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.
Portsmouth Square Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Portsmouth Square's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Portsmouth Square'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.
Portsmouth Square's Operating Margin % for the fiscal year that ended in Jun. 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.
Portsmouth Square (PRSI) has a Operating Margin % of 23.88% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Portsmouth Square and its competitors. This is 205% above median its historical median of 7.82. According to the industry distribution chart, Portsmouth Square ranks #305 out of 844 companies in the Travel & Leisure industry, placing it in the top 36.1%.
Is Portsmouth Square's Operating Margin % too high?
Portsmouth Square's current Operating Margin % of 23.88% is 205% above median its 10-year median of 7.82. The Travel & Leisure industry median Operating Margin % is 8.14. Portsmouth Square's value of 23.88% is 193.5% above this industry median. Based on the distribution chart, Portsmouth Square ranks #305 out of 844 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Portsmouth Square has a GF Score™ of 58/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Portsmouth Square's Operating Margin % compare to UOKAF and SONDQ?
According to the Travel & Leisure industry distribution chart, Portsmouth Square ranks #305 out of 844 companies for Operating Margin %. This puts Portsmouth Square in the upper half of its industry. The industry median Operating Margin % is 8.14. Portsmouth Square's value of 23.88% is 193.5% above this benchmark. While the company's 10-year median is 7.82 vs. the industry median of 8.14, Portsmouth Square 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 Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.14, based on 844 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. Portsmouth Square's current Operating Margin % of 23.88% is 193.5% 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 Portsmouth Square and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Portsmouth Square's current Operating Margin % is 23.88%, which is 205% above median its own 10-year median of 7.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Portsmouth Square stock overvalued right now?
Based on GuruFocus' analysis, Portsmouth Square (PRSI) is currently considered Modestly Overvalued. The stock's GF Value™ is $4.05, compared to a current price of $5.25 — trading 29.6% above its estimated fair value. The current Operating Margin % is 23.88%, which is 205% above median its 10-year median of 7.82 and 193.5% above the Travel & Leisure industry median of 8.14. Portsmouth Square's overall GF Score™ is 58/100 with 5 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 Portsmouth Square (PRSI), the current Operating Margin % is 23.88% 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 Portsmouth Square (PRSI) Overvalued in 2026?
Based on GuruFocus' analysis, Portsmouth Square stock appears to be overvalued.
The current stock price of $5.25 is trading 29.6% above its estimated GF Value™ of $4.05.
GuruFocus considers Portsmouth Square to be Modestly Overvalued.
Key valuation signals for PRSI:
Operating Margin %: 23.88% (205% above median its 10-year median of 7.82)
GF Value™: $4.05 vs. price of $5.25 (29.6% above fair value)
Industry Position: 193.5% above the Travel & Leisure median (#305 of 844)
No single metric tells the full story. See the PRSI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Portsmouth Square Inc is formed to acquire a hotel property in San Francisco, California through a California limited partnership, Justice Investors Limited Partnership. The company operates through two segments Hotel Operations and Investment Transactions. The Hotel Operations segment is engaged in the operation of hotel property referred as Hilton San Francisco Financial District and provides related facilities, including underground parking garage. The Investment Transactions segment includes the investment of cash in marketable securities and other investments. The company generates the majority of its revenue from the Hotel Operations segment.
58GF Score
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