Nippon Hotel & Residential Investment (TSE:3472) 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.
Nippon Hotel & Residential Investment Operating Margin % Related Terms
Nippon Hotel & Residential Investment Operating Margin % Historical Data
* 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.
Nippon Hotel & Residential Investment Operating Margin % Chart
TSE:3472 vs HST, RHP, APLE: Operating Margin % Comparison
For the REIT - Hotel & Motel subindustry, Nippon Hotel & Residential Investment'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.
Nippon Hotel & Residential Investment Operating Margin % vs REITs Industry
Nippon Hotel & Residential Investment 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.
* 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.
Nippon Hotel & Residential Investment (TSE:3472) has a Operating Margin % of 53.08% as of Nov. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Nippon Hotel & Residential Investment and its competitors. This is 16% above median its historical median of 45.58. Over the past decade, Nippon Hotel & Residential Investment's Operating Margin % has ranged from 41.91 to 51.94. According to the industry distribution chart, Nippon Hotel & Residential Investment ranks #386 out of 744 companies in the REITs industry, placing it in the top 51.9%.
Is Nippon Hotel & Residential Investment's Operating Margin % too high?
Nippon Hotel & Residential Investment's current Operating Margin % of 53.08% is 16% above median its 10-year median of 45.58. Over the past 10 years, this metric has ranged from a low of 41.91 to a high of 51.94. The REITs industry median Operating Margin % is 52.67. Nippon Hotel & Residential Investment's value of 53.08% is 0.8% above this industry median. Based on the distribution chart, Nippon Hotel & Residential Investment ranks #386 out of 744 companies in the REITs industry, which is below the industry midpoint. Overall, Nippon Hotel & Residential Investment has a GF Score™ of 52/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Hotel & Residential Investment's Operating Margin % compare to HST and RHP?
According to the REITs industry distribution chart, Nippon Hotel & Residential Investment ranks #386 out of 744 companies for Operating Margin %. This places Nippon Hotel & Residential Investment in the lower half of its industry. The industry median Operating Margin % is 52.67. Nippon Hotel & Residential Investment's value of 53.08% is 0.8% above this benchmark. Historically, Nippon Hotel & Residential Investment's own Operating Margin % has ranged from 41.91 to 51.94 over the past decade. While the company's 10-year median is 45.58 vs. the industry median of 52.67, Nippon Hotel & Residential Investment 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 52.67, based on 744 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. Nippon Hotel & Residential Investment's current Operating Margin % of 53.08% is 0.8% 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 Nippon Hotel & Residential Investment 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. Nippon Hotel & Residential Investment's current Operating Margin % is 53.08%, which is 16% above median its own 10-year median of 45.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Hotel & Residential Investment stock overvalued right now?
Based on GuruFocus' analysis, Nippon Hotel & Residential Investment (TSE:3472) is currently considered Modestly Undervalued. The stock's GF Value™ is 円74,148.30, compared to a current price of 円66,200.00 — trading 10.7% below its estimated fair value. The current Operating Margin % is 53.08%, which is 16% above median its 10-year median of 45.58 and 0.8% above the REITs industry median of 52.67. Nippon Hotel & Residential Investment's overall GF Score™ is 52/100 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 Nippon Hotel & Residential Investment (TSE:3472), the current Operating Margin % is 53.08% as of Nov. 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 Nippon Hotel & Residential Investment (TSE:3472) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Hotel & Residential Investment stock appears to be undervalued.
The current stock price of 円66,200.00 is trading 10.7% below its estimated GF Value™ of 円74,148.30.
GuruFocus considers Nippon Hotel & Residential Investment to be Modestly Undervalued.
Key valuation signals for TSE:3472:
Operating Margin %: 53.08% (16% above median its 10-year median of 45.58)
GF Value™: 円74,148.30 vs. price of 円66,200.00 (10.7% below fair value)
Industry Position: 0.8% above the REITs median (#386 of 744)
No single metric tells the full story. See the TSE:3472 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Hotel & Residential Investment Business Description
Nippon Hotel & Residential Investment Corp is a real estate investment trust. The firm invests in onsen and spa-related facilities, and Accomodation. The company principally invests in hot spring-related industries, such as hotels, hot spring facilities and theme parks.
52GF Score
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