Alexander & Baldwin (STU:ABU) 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.
Alexander & Baldwin Operating Margin % Related Terms
Alexander & Baldwin Operating Margin % Historical Data
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The historical data trend for Alexander & Baldwin'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:ABU vs ALX, CBL, GTY: Operating Margin % Comparison
For the REIT - Retail subindustry, Alexander & Baldwin'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.
Alexander & Baldwin Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Alexander & Baldwin's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Alexander & Baldwin's Operating Margin % falls into.
Alexander & Baldwin 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.
Alexander & Baldwin'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.
Alexander & Baldwin (STU:ABU) has a Operating Margin % of 29.63% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Alexander & Baldwin and its competitors. This is near median its historical median of 28.98. Over the past decade, Alexander & Baldwin's Operating Margin % has ranged from 8.13 to 32.89.
Is Alexander & Baldwin's Operating Margin % too high?
Alexander & Baldwin's current Operating Margin % of 29.63% is near median its 10-year median of 28.98. Over the past 10 years, this metric has ranged from a low of 8.13 to a high of 32.89. The REITs industry median Operating Margin % is 52.67. Alexander & Baldwin's value of 29.63% is 43.7% below this industry median. Overall, Alexander & Baldwin has a GF Score™ of 70/100, reflecting its overall financial health beyond just this single metric.
How does Alexander & Baldwin's Operating Margin % compare to ALX and CBL?
Alexander & Baldwin's Operating Margin % of 29.63% can be compared against companies in the REITs industry. The industry median Operating Margin % is 52.67. Alexander & Baldwin's value of 29.63% is 43.7% below this benchmark. Historically, Alexander & Baldwin's own Operating Margin % has ranged from 8.13 to 32.89 over the past decade. While the company's 10-year median is 28.98 vs. the industry median of 52.67, Alexander & Baldwin 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. Alexander & Baldwin's current Operating Margin % of 29.63% is 43.7% 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 Alexander & Baldwin 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. Alexander & Baldwin's current Operating Margin % is 29.63%, which is near median its own 10-year median of 28.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alexander & Baldwin stock overvalued right now?
Alexander & Baldwin (STU:ABU) has a current Operating Margin % of 29.63%. The stock's GF Value™ is €14.04, compared to a current price of €18.00 — trading 28.2% above its estimated fair value. The current Operating Margin % is 29.63%, which is near median its 10-year median of 28.98 and 43.7% below the REITs industry median of 52.67. Alexander & Baldwin's overall GF Score™ is 70/100 with 10 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 Alexander & Baldwin (STU:ABU), the current Operating Margin % is 29.63% as of Dec. 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 Alexander & Baldwin (STU:ABU) Overvalued in 2026?
Based on GuruFocus' analysis, Alexander & Baldwin stock appears to be overvalued.
The current stock price of €18.00 is trading 28.2% above its estimated GF Value™ of €14.04.
Key valuation signals for STU:ABU:
Operating Margin %: 29.63% (near median its 10-year median of 28.98)
GF Value™: €14.04 vs. price of €18.00 (28.2% above fair value)
No single metric tells the full story. See the STU:ABU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alexander & Baldwin Inc is a Hawaii commercial real estate company. The group owns, operates, and manages a million square feet of retail, industrial, and office space in Hawaii. It is a real estate investment trust (REIT) and the owner of grocery and drug-anchored retail centers in the state. It functions through two segments, namely Commercial Real Estate and Land Operations. The Commercial Real Estate segment owns and manages retail, industrial spaces, and also urban ground leases in Hawaii, thereby accounting for a majority of the company's revenue. The Land Operations segment actively manages the company's land and real estate-related assets and makes optimum utilization of these assets. Geographically, the activities are carried out across the United States.
70GF Score
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