Sankei Real Estate (TSE:2972) Operating Margin %: 55.88% (As of Feb. 2026) — Near Median

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TSE:2972 Sankei Real Estate Inc TSE:2972
59 GF Score
Price 円113,700.00
GF Value 円85,601.71
Valuation Significantly Overvalued
! 9 Warning Signs
View Full Analysis

What is Sankei Real Estate Operating Margin %?

Sankei Real Estate TSE:2972 -0.26% 59 Operating Margin % is 55.88% as of Feb. 2026, which is 7% above its 10-year median of 52.46. GuruFocus rates TSE:2972 with a GF Score™ of 59/100 and a GF Value™ of 円85,601.71 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 746 REITs companies, Sankei Real Estate ranks better than 52.41% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Sankei Real Estate's Operating Income for the six months ended in Feb. 2026 was 円1,610 Mil. Sankei Real Estate's Revenue for the six months ended in Feb. 2026 was 円2,882 Mil. Therefore, Sankei Real Estate's Operating Margin % for the quarter that ended in Feb. 2026 was 55.88%.

Warning Sign:

Sankei Real Estate Inc operating margin has been in a 5-year decline. The average rate of decline per year is -7.3%.

The historical rank and industry rank for Sankei Real Estate's Operating Margin % or its related term are showing as below:

TSE:2972' s Operating Margin % Range Over the Past 10 Years
Min: 24.71   Med: 52.46   Max: 54.9
Current: 53.84


TSE:2972's Operating Margin % is ranked better than
52.41% of 746 companies
in the REITs industry
Industry Median: 52.725 vs TSE:2972: 53.84

Sankei Real Estate's 5-Year Average Operating Margin % Growth Rate was -7.30% per year.

Sankei Real Estate's Operating Income for the six months ended in Feb. 2026 was 円1,610 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was 円2,958 Mil.


Sankei Real Estate  (TSE:2972) 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 Nokia’s 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.


Sankei Real Estate Operating Margin % Related Terms


Sankei Real Estate Operating Margin % Historical Data

* Premium members only.

The historical data trend for Sankei Real Estate'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.

Sankei Real Estate Operating Margin % Chart

Sankei Real Estate Annual Data
Trend Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
Operating Margin %
Get a 7-Day Free Trial 52.26 54.61 45.69 24.71 52.65

Sankei Real Estate Semi-Annual Data
Apr19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.81 52.81 53.75 51.60 55.88

TSE:2972 vs BXP, ARE, VNO: Operating Margin % Comparison

For the REIT - Office subindustry, Sankei Real Estate'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.


Sankei Real Estate Operating Margin % vs REITs Industry

For the REITs industry and Real Estate sector, Sankei Real Estate's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Sankei Real Estate's Operating Margin % falls into.


TSE:2972
59GF Score
Sankei Real Estate Inc TSE:2972
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sankei Real Estate 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.

Sankei Real Estate's Operating Margin % for the fiscal year that ended in Aug. 2025 is calculated as

Operating Margin %=Operating Income (A: Aug. 2025 ) / Revenue (A: Aug. 2025 )
=2700.18 / 5128.25
=52.65 %

Sankei Real Estate's Operating Margin % for the quarter that ended in Feb. 2026 is calculated as

Operating Margin %=Operating Income (Q: Feb. 2026 ) / Revenue (Q: Feb. 2026 )
=1610.381 / 2882.077
=55.88 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 55.88% mean?
Sankei Real Estate (TSE:2972) has a Operating Margin % of 55.88% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sankei Real Estate and its competitors. This is near median its historical median of 52.46. Over the past decade, Sankei Real Estate's Operating Margin % has ranged from 24.71 to 54.90. According to the industry distribution chart, Sankei Real Estate ranks #355 out of 746 companies in the REITs industry, placing it in the top 47.6%.
Is Sankei Real Estate's Operating Margin % too high?
Sankei Real Estate's current Operating Margin % of 55.88% is near median its 10-year median of 52.46. Over the past 10 years, this metric has ranged from a low of 24.71 to a high of 54.90. The REITs industry median Operating Margin % is 52.73. Sankei Real Estate's value of 55.88% is 6% above this industry median. Based on the distribution chart, Sankei Real Estate ranks #355 out of 746 companies in the REITs industry, which is above the industry midpoint. Overall, Sankei Real Estate has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sankei Real Estate's Operating Margin % compare to BXP and ARE?
According to the REITs industry distribution chart, Sankei Real Estate ranks #355 out of 746 companies for Operating Margin %. This puts Sankei Real Estate in the upper half of its industry. The industry median Operating Margin % is 52.73. Sankei Real Estate's value of 55.88% is 6% above this benchmark. Historically, Sankei Real Estate's own Operating Margin % has ranged from 24.71 to 54.90 over the past decade. While the company's 10-year median is 52.46 vs. the industry median of 52.73, Sankei Real Estate 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 52.73, 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. Sankei Real Estate's current Operating Margin % of 55.88% is 6% 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 Sankei Real Estate 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. Sankei Real Estate's current Operating Margin % is 55.88%, which is near median its own 10-year median of 52.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sankei Real Estate stock overvalued right now?
Based on GuruFocus' analysis, Sankei Real Estate (TSE:2972) is currently considered Significantly Overvalued. The stock's GF Value™ is 円85,601.71, compared to a current price of 円113,700.00 — trading 32.8% above its estimated fair value. The current Operating Margin % is 55.88%, which is near median its 10-year median of 52.46 and 6% above the REITs industry median of 52.73. Sankei Real Estate's overall GF Score™ is 59/100 with 9 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 Sankei Real Estate (TSE:2972), the current Operating Margin % is 55.88% as of Feb. 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 Sankei Real Estate (TSE:2972) Overvalued in 2026?

Based on GuruFocus' analysis, Sankei Real Estate stock appears to be overvalued. The current stock price of 円113,700.00 is trading 32.8% above its estimated GF Value™ of 円85,601.71. GuruFocus considers Sankei Real Estate to be Significantly Overvalued.

Key valuation signals for TSE:2972:

  • Operating Margin %: 55.88% (near median its 10-year median of 52.46)
  • GF Value™: 円85,601.71 vs. price of 円113,700.00 (32.8% above fair value)
  • GF Score™: 59/100 with 9 warning signs
  • Industry Position: 6% above the REITs median (#355 of 746)

No single metric tells the full story. See the TSE:2972 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sankei Real Estate Business Description

Industry Real EstateREITs
Address 2-3-4 Uchikanda, 4th floor, S-GATE Otemachi Kita, Chiyoda-ku, Tokyo, JPN, 100-0004
Sankei Real Estate Inc is a Japanese based J-REIT. The company is engaged in the leasing of real estate properties, and owns office buildings.
59GF Score

Get the complete analysis for TSE:2972

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円113,700.00
Price
円85,601.71
GF Value