SM Prime HoldingsSPHXF 49 Operating Margin % is 50.26% as of Mar. 2026, which is 8% above its 10-year median of 46.49. GuruFocus rates SPHXF with a GF Score™ of 49/100 and a GF Value™ of $0.43 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,748 Real Estate companies, SM Prime Holdings ranks better than 84.55% on this metric.
SM Prime Holdings (OTCPK:SPHXF) 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.
SM Prime Holdings Operating Margin % Related Terms
SM Prime Holdings Operating Margin % Historical Data
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The historical data trend for SM Prime Holdings'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.
SM Prime Holdings Operating Margin % Competitor Comparison
For the Real Estate - Diversified subindustry, SM Prime Holdings'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.
SM Prime Holdings Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, SM Prime Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SM Prime Holdings'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.
SM Prime Holdings'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.
SM Prime Holdings (SPHXF) has a Operating Margin % of 50.26% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on SM Prime Holdings and its competitors. This is near median its historical median of 46.49. Over the past decade, SM Prime Holdings' Operating Margin % has ranged from 35.50 to 50.83. According to the industry distribution chart, SM Prime Holdings ranks #270 out of 1748 companies in the Real Estate industry, placing it in the top 15.4%.
Is SM Prime Holdings' Operating Margin % too high?
SM Prime Holdings' current Operating Margin % of 50.26% is near median its 10-year median of 46.49. Over the past 10 years, this metric has ranged from a low of 35.50 to a high of 50.83. The Real Estate industry median Operating Margin % is 13.22. SM Prime Holdings' value of 50.26% is 280.2% above this industry median. Based on the distribution chart, SM Prime Holdings ranks #270 out of 1748 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, SM Prime Holdings has a GF Score™ of 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does SM Prime Holdings' Operating Margin % compare to competitors?
According to the Real Estate industry distribution chart, SM Prime Holdings ranks #270 out of 1748 companies for Operating Margin %. This places SM Prime Holdings in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 13.22. SM Prime Holdings' value of 50.26% is 280.2% above this benchmark. Historically, SM Prime Holdings' own Operating Margin % has ranged from 35.50 to 50.83 over the past decade. While the company's 10-year median is 46.49 vs. the industry median of 13.22, SM Prime Holdings 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.22, based on 1,748 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. SM Prime Holdings's current Operating Margin % of 50.26% is 280.2% 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 SM Prime Holdings and its competitors. For the Real Estate industry, the median Operating Margin % is 13.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SM Prime Holdings's current Operating Margin % is 50.26%, which is near median its own 10-year median of 46.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SM Prime Holdings stock overvalued right now?
Based on GuruFocus' analysis, SM Prime Holdings (SPHXF) is currently considered Possible Value Trap. The stock's GF Value™ is $0.43, compared to a current price of $0.28 — trading 34.9% below its estimated fair value. The current Operating Margin % is 50.26%, which is near median its 10-year median of 46.49 and 280.2% above the Real Estate industry median of 13.22. SM Prime Holdings' overall GF Score™ is 49/100 with 4 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 SM Prime Holdings (SPHXF), the current Operating Margin % is 50.26% 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 SM Prime Holdings (SPHXF) Overvalued in 2026?
Based on GuruFocus' analysis, SM Prime Holdings stock appears to be undervalued.
The current stock price of $0.28 is trading 34.9% below its estimated GF Value™ of $0.43.
GuruFocus considers SM Prime Holdings to be Possible Value Trap.
Key valuation signals for SPHXF:
Operating Margin %: 50.26% (near median its 10-year median of 46.49)
GF Value™: $0.43 vs. price of $0.28 (34.9% below fair value)
Industry Position: 280.2% above the Real Estate median (#270 of 1748)
No single metric tells the full story. See the SPHXF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SM Prime Holdings Inc is an integrated property developer. It is engaged in acquiring and developing real estate, conducting and maintaining commercial shopping centers, and constructing and managing buildings such as condominiums, apartments, hotels, restaurants, stores, and other structures for mixed-use purposes. The company has four business segments, namely, malls, residential, commercial, and integrated property developments and hotels and convention centers. It generates maximum revenue from the Malls segment, which develops, conducts, operates, and maintains the business of commercial shopping centers for rent, amusement centers, or cinema theaters within the compound of the shopping centers.
49GF Score
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