Japan Real Estate Investment (TSE:8952) 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.
Japan Real Estate Investment Operating Margin % Related Terms
Japan Real Estate 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.
Japan Real Estate Investment Operating Margin % Chart
TSE:8952 vs BXP, ARE, VNO: Operating Margin % Comparison
For the REIT - Office subindustry, Japan Real Estate 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.
Japan Real Estate Investment Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Japan Real Estate Investment's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Japan Real Estate Investment's Operating Margin % falls into.
Japan Real Estate 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.
Japan Real Estate Investment (TSE:8952) has a Operating Margin % of 48.52% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Japan Real Estate Investment and its competitors. This is near median its historical median of 46.81. Over the past decade, Japan Real Estate Investment's Operating Margin % has ranged from 40.29 to 48.76. According to the industry distribution chart, Japan Real Estate Investment ranks #444 out of 750 companies in the REITs industry, placing it in the top 59.2%.
Is Japan Real Estate Investment's Operating Margin % too high?
Japan Real Estate Investment's current Operating Margin % of 48.52% is near median its 10-year median of 46.81. Over the past 10 years, this metric has ranged from a low of 40.29 to a high of 48.76. The REITs industry median Operating Margin % is 52.67. Japan Real Estate Investment's value of 48.52% is 7.9% below this industry median. Based on the distribution chart, Japan Real Estate Investment ranks #444 out of 750 companies in the REITs industry, which is below the industry midpoint. Overall, Japan Real Estate Investment has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Japan Real Estate Investment's Operating Margin % compare to BXP and ARE?
According to the REITs industry distribution chart, Japan Real Estate Investment ranks #444 out of 750 companies for Operating Margin %. This places Japan Real Estate Investment in the lower half of its industry. The industry median Operating Margin % is 52.67. Japan Real Estate Investment's value of 48.52% is 7.9% below this benchmark. Historically, Japan Real Estate Investment's own Operating Margin % has ranged from 40.29 to 48.76 over the past decade. While the company's 10-year median is 46.81 vs. the industry median of 52.67, Japan Real Estate Investment 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. Japan Real Estate Investment's current Operating Margin % of 48.52% is 7.9% 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 Japan Real Estate 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. Japan Real Estate Investment's current Operating Margin % is 48.52%, which is near median its own 10-year median of 46.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Real Estate Investment stock overvalued right now?
Based on GuruFocus' analysis, Japan Real Estate Investment (TSE:8952) is currently considered Fairly Valued. The stock's GF Value™ is 円111,886.70, compared to a current price of 円114,800.00 — trading 2.6% above its estimated fair value. The current Operating Margin % is 48.52%, which is near median its 10-year median of 46.81 and 7.9% below the REITs industry median of 52.67. Japan Real Estate Investment's overall GF Score™ is 64/100 with 6 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 Japan Real Estate Investment (TSE:8952), the current Operating Margin % is 48.52% 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 Japan Real Estate Investment (TSE:8952) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Real Estate Investment stock appears to be overvalued.
The current stock price of 円114,800.00 is trading 2.6% above its estimated GF Value™ of 円111,886.70.
GuruFocus considers Japan Real Estate Investment to be Fairly Valued.
Key valuation signals for TSE:8952:
Operating Margin %: 48.52% (near median its 10-year median of 46.81)
GF Value™: 円111,886.70 vs. price of 円114,800.00 (2.6% above fair value)
Industry Position: 7.9% below the REITs median (#444 of 750)
No single metric tells the full story. See the TSE:8952 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Real Estate Investment Corp, or J-REIT, is a Japanese real estate investment trust that invests in, owns, and leases office properties. The vast majority of the company's real estate portfolio is located within Tokyo's 23 wards and the Tokyo metropolitan area in terms of total value. Within this area, J-REIT's offices reside within the Tokyo central business district. The company derives nearly all of its income in the form of rental revenue from the leasing of its office properties. While J-REIT tenants hail from a diverse assortment of industries, firms from the service, information services, electric devices, and financial services industries are its customers.
64GF Score
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