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.
SBA Communications Operating Margin % Related Terms
SBA Communications Operating Margin % Historical Data
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The historical data trend for SBA Communications'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.
STU:4SB vs WY, LAMR, GLPI: Operating Margin % Comparison
For the REIT - Specialty subindustry, SBA Communications'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.
SBA Communications Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, SBA Communications's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SBA Communications'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.
SBA Communications'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.
SBA Communications (STU:4SB) has a Operating Margin % of 54.05% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on SBA Communications and its competitors. This is 55% above median its historical median of 34.83. Over the past decade, SBA Communications' Operating Margin % has ranged from 26.37 to 58.58. According to the industry distribution chart, SBA Communications ranks #345 out of 749 companies in the REITs industry, placing it in the top 46.1%.
Is SBA Communications' Operating Margin % too high?
SBA Communications' current Operating Margin % of 54.05% is 55% above median its 10-year median of 34.83. Over the past 10 years, this metric has ranged from a low of 26.37 to a high of 58.58. The REITs industry median Operating Margin % is 52.71. SBA Communications' value of 54.05% is 2.5% above this industry median. Based on the distribution chart, SBA Communications ranks #345 out of 749 companies in the REITs industry, which is above the industry midpoint. Overall, SBA Communications has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does SBA Communications' Operating Margin % compare to WY and LAMR?
According to the REITs industry distribution chart, SBA Communications ranks #345 out of 749 companies for Operating Margin %. This puts SBA Communications in the upper half of its industry. The industry median Operating Margin % is 52.71. SBA Communications' value of 54.05% is 2.5% above this benchmark. Historically, SBA Communications' own Operating Margin % has ranged from 26.37 to 58.58 over the past decade. While the company's 10-year median is 34.83 vs. the industry median of 52.71, SBA Communications 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. SBA Communications's current Operating Margin % of 54.05% is 2.5% 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 SBA Communications 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. SBA Communications's current Operating Margin % is 54.05%, which is 55% above median its own 10-year median of 34.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SBA Communications stock overvalued right now?
SBA Communications (STU:4SB) has a current Operating Margin % of 54.05%. The stock's GF Value™ is €204.89, compared to a current price of €159.00 — trading 22.4% below its estimated fair value. The current Operating Margin % is 54.05%, which is 55% above median its 10-year median of 34.83 and 2.5% above the REITs industry median of 52.71. SBA Communications' overall GF Score™ is 85/100 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 SBA Communications (STU:4SB), the current Operating Margin % is 54.05% 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 SBA Communications (STU:4SB) Overvalued in 2026?
Based on GuruFocus' analysis, SBA Communications stock appears to be undervalued.
The current stock price of €159.00 is trading 22.4% below its estimated GF Value™ of €204.89.
Key valuation signals for STU:4SB:
Operating Margin %: 54.05% (55% above median its 10-year median of 34.83)
GF Value™: €204.89 vs. price of €159.00 (22.4% below fair value)
Industry Position: 2.5% above the REITs median (#345 of 749)
No single metric tells the full story. See the STU:4SB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SBA Communications owns a portfolio of about 46,000 wireless towers throughout North America, South America, and Africa. It leases space on its towers to wireless service providers, who install equipment to support their wireless networks. The company has a very concentrated customer base, with most revenue in each market generated by the top three or four mobile carriers. It owns more than 17,000 towers in the US, which account for about 70% of leasing revenue. Internationally, SBA's largest markets are Brazil and Guatemala, where it owns roughly 12,000 and 5,000 towers, respectively. SBA operates as a real estate investment trust.
85GF Score
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