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Highwoods PropertiesSTU:HQS -1.45%71 Operating Margin % is 24.27% as of Mar. 2026, which is 12% below its 10-year median of 27.48. GuruFocus rates STU:HQS with a GF Score™ of 71/100 and a GF Value™ of €22.87 (Modestly Overvalued). The stock has 13 warning signs investors should review. Among 746 REITs companies, Highwoods Properties ranks worse than 77.48% 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.
Highwoods Properties Operating Margin % Related Terms
Highwoods Properties Operating Margin % Historical Data
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The historical data trend for Highwoods Properties'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:HQS vs SLG, CDP, KRC: Operating Margin % Comparison
For the REIT - Office subindustry, Highwoods Properties'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.
Highwoods Properties Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Highwoods Properties's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Highwoods Properties'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.
Highwoods Properties'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.
Highwoods Properties (STU:HQS) has a Operating Margin % of 24.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Highwoods Properties and its competitors. This is 12% below median its historical median of 27.48. Over the past decade, Highwoods Properties' Operating Margin % has ranged from 25.61 to 30.19. According to the industry distribution chart, Highwoods Properties ranks #578 out of 746 companies in the REITs industry, placing it in the top 77.5%.
Is Highwoods Properties' Operating Margin % too high?
Highwoods Properties' current Operating Margin % of 24.27% is 12% below median its 10-year median of 27.48. Over the past 10 years, this metric has ranged from a low of 25.61 to a high of 30.19. The REITs industry median Operating Margin % is 52.73. Highwoods Properties' value of 24.27% is 54% below this industry median. Based on the distribution chart, Highwoods Properties ranks #578 out of 746 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Highwoods Properties has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Highwoods Properties' Operating Margin % compare to SLG and CDP?
According to the REITs industry distribution chart, Highwoods Properties ranks #578 out of 746 companies for Operating Margin %. This places Highwoods Properties in the lower half of its industry. The industry median Operating Margin % is 52.73. Highwoods Properties' value of 24.27% is 54% below this benchmark. Historically, Highwoods Properties' own Operating Margin % has ranged from 25.61 to 30.19 over the past decade. While the company's 10-year median is 27.48 vs. the industry median of 52.73, Highwoods Properties 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 52.73, based on 746 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. Highwoods Properties's current Operating Margin % of 24.27% is 54% 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 Highwoods Properties and its competitors. For the REITs industry, the median Operating Margin % is 52.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Highwoods Properties's current Operating Margin % is 24.27%, which is 12% below median its own 10-year median of 27.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Highwoods Properties stock overvalued right now?
Based on GuruFocus' analysis, Highwoods Properties (STU:HQS) is currently considered Modestly Overvalued. The stock's GF Value™ is €22.87, compared to a current price of €27.20 — trading 18.9% above its estimated fair value. The current Operating Margin % is 24.27%, which is 12% below median its 10-year median of 27.48 and 54% below the REITs industry median of 52.73. Highwoods Properties' overall GF Score™ is 71/100 with 13 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 Highwoods Properties (STU:HQS), the current Operating Margin % is 24.27% 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 Highwoods Properties (STU:HQS) Overvalued in 2026?
Based on GuruFocus' analysis, Highwoods Properties stock appears to be overvalued.
The current stock price of €27.20 is trading 18.9% above its estimated GF Value™ of €22.87.
GuruFocus considers Highwoods Properties to be Modestly Overvalued.
Key valuation signals for STU:HQS:
Operating Margin %: 24.27% (12% below median its 10-year median of 27.48)
GF Value™: €22.87 vs. price of €27.20 (18.9% above fair value)
Industry Position: 54% below the REITs median (#578 of 746)
No single metric tells the full story. See the STU:HQS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Highwoods Properties Inc is a fully integrated office REIT that owns, develops, acquires, leases, and manages office properties mainly in the best business districts of Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond, and Tampa. Its principal business is the operation, acquisition, and development of rental office properties, with no material inter-segment transactions. The Company evaluates performance by geographic location, and the operating results by geographic grouping are regularly reviewed by the chief operating decision maker. The core portfolio consists mainly of office properties in its key markets, with the majority of revenue derived from its Raleigh properties.
71GF Score
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