Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Heiwa Real Estate REIT (TSE:8966) 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.
Heiwa Real Estate REIT Operating Margin % Related Terms
Heiwa Real Estate REIT Operating Margin % Historical Data
* Premium members only.
The historical data trend for Heiwa Real Estate REIT'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.
TSE:8966 vs VICI, WPC: Operating Margin % Comparison
For the REIT - Diversified subindustry, Heiwa Real Estate REIT'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.
Heiwa Real Estate REIT Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Heiwa Real Estate REIT's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Heiwa Real Estate REIT's Operating Margin % falls into.
Heiwa Real Estate REIT 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.
Heiwa Real Estate REIT's Operating Margin % for the fiscal year that ended in Nov. 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.
Heiwa Real Estate REIT (TSE:8966) has a Operating Margin % of 55.91% as of Nov. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Heiwa Real Estate REIT and its competitors. This is 11% above median its historical median of 50.36. Over the past decade, Heiwa Real Estate REIT's Operating Margin % has ranged from 42.09 to 55.33. According to the industry distribution chart, Heiwa Real Estate REIT ranks #336 out of 744 companies in the REITs industry, placing it in the top 45.2%.
Is Heiwa Real Estate REIT's Operating Margin % too high?
Heiwa Real Estate REIT's current Operating Margin % of 55.91% is 11% above median its 10-year median of 50.36. Over the past 10 years, this metric has ranged from a low of 42.09 to a high of 55.33. The REITs industry median Operating Margin % is 52.74. Heiwa Real Estate REIT's value of 55.91% is 6% above this industry median. Based on the distribution chart, Heiwa Real Estate REIT ranks #336 out of 744 companies in the REITs industry, which is above the industry midpoint. Overall, Heiwa Real Estate REIT has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Heiwa Real Estate REIT's Operating Margin % compare to VICI and WPC?
According to the REITs industry distribution chart, Heiwa Real Estate REIT ranks #336 out of 744 companies for Operating Margin %. This puts Heiwa Real Estate REIT in the upper half of its industry. The industry median Operating Margin % is 52.74. Heiwa Real Estate REIT's value of 55.91% is 6% above this benchmark. Historically, Heiwa Real Estate REIT's own Operating Margin % has ranged from 42.09 to 55.33 over the past decade. While the company's 10-year median is 50.36 vs. the industry median of 52.74, Heiwa Real Estate REIT 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 52.74, 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. Heiwa Real Estate REIT's current Operating Margin % of 55.91% 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 Heiwa Real Estate REIT and its competitors. For the REITs industry, the median Operating Margin % is 52.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Heiwa Real Estate REIT's current Operating Margin % is 55.91%, which is 11% above median its own 10-year median of 50.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Heiwa Real Estate REIT stock overvalued right now?
Based on GuruFocus' analysis, Heiwa Real Estate REIT (TSE:8966) is currently considered Modestly Undervalued. The stock's GF Value™ is 円163,138.94, compared to a current price of 円135,500.00 — trading 16.9% below its estimated fair value. The current Operating Margin % is 55.91%, which is 11% above median its 10-year median of 50.36 and 6% above the REITs industry median of 52.74. Heiwa Real Estate REIT's overall GF Score™ is 70/100 with 4 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 Heiwa Real Estate REIT (TSE:8966), the current Operating Margin % is 55.91% 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 Heiwa Real Estate REIT (TSE:8966) Overvalued in 2026?
Based on GuruFocus' analysis, Heiwa Real Estate REIT stock appears to be undervalued.
The current stock price of 円135,500.00 is trading 16.9% below its estimated GF Value™ of 円163,138.94.
GuruFocus considers Heiwa Real Estate REIT to be Modestly Undervalued.
Key valuation signals for TSE:8966:
Operating Margin %: 55.91% (11% above median its 10-year median of 50.36)
GF Value™: 円163,138.94 vs. price of 円135,500.00 (16.9% below fair value)
Industry Position: 6% above the REITs median (#336 of 744)
No single metric tells the full story. See the TSE:8966 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Heiwa Real Estate REIT Inc is a real estate company that invests in office buildings and residential buildings located in the Tokyo Metropolitan Area and other cities across Japan. The company leases its buildings for rental revenue and renovates its properties. The tenants include both individuals and businesses from various industries such as wholesale and retail, manufacturing, and information and technology services.
70GF Score
Get the complete analysis for TSE:8966
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:8966 has been successfully added to your 
