Universal Health Realtyome Trust (NYSE:UHT) 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.
Universal Health Realtyome Trust Operating Margin % Related Terms
Universal Health Realtyome Trust 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.
Universal Health Realtyome Trust Operating Margin % Chart
UHT vs NHP, CHCT, XRN: Operating Margin % Comparison
For the REIT - Healthcare Facilities subindustry, Universal Health Realtyome Trust'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.
Universal Health Realtyome Trust Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Universal Health Realtyome Trust's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Universal Health Realtyome Trust's Operating Margin % falls into.
Universal Health Realtyome Trust 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.
Universal Health Realtyome Trust (UHT) has a Operating Margin % of 36.52% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Universal Health Realtyome Trust and its competitors. This is near median its historical median of 33.80. Over the past decade, Universal Health Realtyome Trust's Operating Margin % has ranged from 32.80 to 37.16. According to the industry distribution chart, Universal Health Realtyome Trust ranks #534 out of 750 companies in the REITs industry, placing it in the top 71.2%.
Is Universal Health Realtyome Trust's Operating Margin % too high?
Universal Health Realtyome Trust's current Operating Margin % of 36.52% is near median its 10-year median of 33.80. Over the past 10 years, this metric has ranged from a low of 32.80 to a high of 37.16. The REITs industry median Operating Margin % is 52.67. Universal Health Realtyome Trust's value of 36.52% is 30.7% below this industry median. Based on the distribution chart, Universal Health Realtyome Trust ranks #534 out of 750 companies in the REITs industry, which is below the industry midpoint. Overall, Universal Health Realtyome Trust has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Universal Health Realtyome Trust's Operating Margin % compare to NHP and CHCT?
According to the REITs industry distribution chart, Universal Health Realtyome Trust ranks #534 out of 750 companies for Operating Margin %. This places Universal Health Realtyome Trust in the lower half of its industry. The industry median Operating Margin % is 52.67. Universal Health Realtyome Trust's value of 36.52% is 30.7% below this benchmark. Historically, Universal Health Realtyome Trust's own Operating Margin % has ranged from 32.80 to 37.16 over the past decade. While the company's 10-year median is 33.80 vs. the industry median of 52.67, Universal Health Realtyome Trust 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. Universal Health Realtyome Trust's current Operating Margin % of 36.52% is 30.7% 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 Universal Health Realtyome Trust 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. Universal Health Realtyome Trust's current Operating Margin % is 36.52%, which is near median its own 10-year median of 33.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Health Realtyome Trust stock overvalued right now?
Based on GuruFocus' analysis, Universal Health Realtyome Trust (UHT) is currently considered Fairly Valued. The stock's GF Value™ is $40.74, compared to a current price of $41.24 — trading 1.2% above its estimated fair value. The current Operating Margin % is 36.52%, which is near median its 10-year median of 33.80 and 30.7% below the REITs industry median of 52.67. Universal Health Realtyome Trust's overall GF Score™ is 75/100 with 8 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 Universal Health Realtyome Trust (UHT), the current Operating Margin % is 36.52% 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 Universal Health Realtyome Trust (UHT) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Health Realtyome Trust stock appears to be overvalued.
The current stock price of $41.24 is trading 1.2% above its estimated GF Value™ of $40.74.
GuruFocus considers Universal Health Realtyome Trust to be Fairly Valued.
Key valuation signals for UHT:
Operating Margin %: 36.52% (near median its 10-year median of 33.80)
GF Value™: $40.74 vs. price of $41.24 (1.2% above fair value)
Industry Position: 30.7% below the REITs median (#534 of 750)
No single metric tells the full story. See the UHT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Health Realtyome Trust Business Description
Universal Health Realty Income Trust is a healthcare REIT. The company is engaged in the business of investing in and leasing healthcare and human service facilities through direct ownership or through joint ventures, which aggregate into a single reportable segment. The company actively manages a portfolio of healthcare and human service facilities. The revenue and net income are generated from the operation of the investment portfolio, located throughout the United States.
75GF Score
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