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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 NokiaÂ’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.
Vital Healthcare Property Trust Operating Margin % Related Terms
Vital Healthcare Property 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.
VTHPF vs WELL, VTR, DOC: Operating Margin % Comparison
For the REIT - Healthcare Facilities subindustry, Vital Healthcare Property 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.
Vital Healthcare Property Trust Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Vital Healthcare Property Trust's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Vital Healthcare Property Trust's Operating Margin % falls into.
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.
Vital Healthcare Property Trust (VTHPF) has a Operating Margin % of 70.68% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Vital Healthcare Property Trust and its competitors. This is near median its historical median of 65.33. Over the past decade, Vital Healthcare Property Trust's Operating Margin % has ranged from 59.90 to 69.55. According to the industry distribution chart, Vital Healthcare Property Trust ranks #169 out of 746 companies in the REITs industry, placing it in the top 22.7%.
Is Vital Healthcare Property Trust's Operating Margin % too high?
Vital Healthcare Property Trust's current Operating Margin % of 70.68% is near median its 10-year median of 65.33. Over the past 10 years, this metric has ranged from a low of 59.90 to a high of 69.55. The REITs industry median Operating Margin % is 52.73. Vital Healthcare Property Trust's value of 70.68% is 34.1% above this industry median. Based on the distribution chart, Vital Healthcare Property Trust ranks #169 out of 746 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Vital Healthcare Property Trust has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Vital Healthcare Property Trust's Operating Margin % compare to WELL and VTR?
According to the REITs industry distribution chart, Vital Healthcare Property Trust ranks #169 out of 746 companies for Operating Margin %. This places Vital Healthcare Property Trust in the top 23% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 52.73. Vital Healthcare Property Trust's value of 70.68% is 34.1% above this benchmark. Historically, Vital Healthcare Property Trust's own Operating Margin % has ranged from 59.90 to 69.55 over the past decade. While the company's 10-year median is 65.33 vs. the industry median of 52.73, Vital Healthcare Property Trust 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. Vital Healthcare Property Trust's current Operating Margin % of 70.68% is 34.1% 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 Vital Healthcare Property Trust 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. Vital Healthcare Property Trust's current Operating Margin % is 70.68%, which is near median its own 10-year median of 65.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vital Healthcare Property Trust stock overvalued right now?
Vital Healthcare Property Trust (VTHPF) has a current Operating Margin % of 70.68%. The stock's GF Value™ is $0.78, compared to a current price of $0.85 — trading 9% above its estimated fair value. The current Operating Margin % is 70.68%, which is near median its 10-year median of 65.33 and 34.1% above the REITs industry median of 52.73. Vital Healthcare Property Trust's overall GF Score™ is 75/100 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 Vital Healthcare Property Trust (VTHPF), the current Operating Margin % is 70.68% as of Dec. 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 Vital Healthcare Property Trust (VTHPF) Overvalued in 2026?
Based on GuruFocus' analysis, Vital Healthcare Property Trust stock appears to be overvalued.
The current stock price of $0.85 is trading 9% above its estimated GF Value™ of $0.78.
Key valuation signals for VTHPF:
Operating Margin %: 70.68% (near median its 10-year median of 65.33)
GF Value™: $0.78 vs. price of $0.85 (9% above fair value)
Industry Position: 34.1% above the REITs median (#169 of 746)
No single metric tells the full story. See the VTHPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vital Healthcare Property Trust Business Description
Vital Healthcare Property Trust is a healthcare REIT. The vast majority of revenue is generated in Australia, followed by New Zealand. Majority of the company's tenants are for-profit hospitals, followed by medical consultants and nonprofit hospitals. The company's principal activity is the investment in, and management of, high quality real estate in good locations used by healthcare operators or used for healthcare, life sciences and related purposes. It operates in Australia and New Zealand.
75GF Score
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