Wharf Real Estate Investment Co (OTCPK:WRFRF) 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 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.
Wharf Real Estate Investment Co Operating Margin % Related Terms
Wharf Real Estate Investment Co 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.
Wharf Real Estate Investment Co Operating Margin % Chart
WRFRF vs CBRE, BEKE, CSGP: Operating Margin % Comparison
For the Real Estate Services subindustry, Wharf Real Estate Investment Co'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.
Wharf Real Estate Investment Co Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Wharf Real Estate Investment Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Wharf Real Estate Investment Co's Operating Margin % falls into.
Wharf Real Estate Investment Co 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.
Wharf Real Estate Investment Co (WRFRF) has a Operating Margin % of 72.80% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Wharf Real Estate Investment Co and its competitors. This is near median its historical median of 73.41. Over the past decade, Wharf Real Estate Investment Co's Operating Margin % has ranged from 56.50 to 79.23. According to the industry distribution chart, Wharf Real Estate Investment Co ranks #83 out of 1745 companies in the Real Estate industry, placing it in the top 4.8%.
Is Wharf Real Estate Investment Co's Operating Margin % too high?
Wharf Real Estate Investment Co's current Operating Margin % of 72.80% is near median its 10-year median of 73.41. Over the past 10 years, this metric has ranged from a low of 56.50 to a high of 79.23. The Real Estate industry median Operating Margin % is 13.23. Wharf Real Estate Investment Co's value of 72.80% is 450.3% above this industry median. Based on the distribution chart, Wharf Real Estate Investment Co ranks #83 out of 1745 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, Wharf Real Estate Investment Co has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Wharf Real Estate Investment Co's Operating Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Wharf Real Estate Investment Co ranks #83 out of 1745 companies for Operating Margin %. This places Wharf Real Estate Investment Co in the top 5% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 13.23. Wharf Real Estate Investment Co's value of 72.80% is 450.3% above this benchmark. Historically, Wharf Real Estate Investment Co's own Operating Margin % has ranged from 56.50 to 79.23 over the past decade. While the company's 10-year median is 73.41 vs. the industry median of 13.23, Wharf Real Estate Investment Co 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.23, based on 1,745 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. Wharf Real Estate Investment Co's current Operating Margin % of 72.80% is 450.3% 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 Wharf Real Estate Investment Co and its competitors. For the Real Estate industry, the median Operating Margin % is 13.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wharf Real Estate Investment Co's current Operating Margin % is 72.80%, which is near median its own 10-year median of 73.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wharf Real Estate Investment Co stock overvalued right now?
Based on GuruFocus' analysis, Wharf Real Estate Investment Co (WRFRF) is currently considered Modestly Undervalued. The stock's GF Value™ is $3.10, compared to a current price of $2.70 — trading 12.9% below its estimated fair value. The current Operating Margin % is 72.80%, which is near median its 10-year median of 73.41 and 450.3% above the Real Estate industry median of 13.23. Wharf Real Estate Investment Co's overall GF Score™ is 70/100 with 3 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 Wharf Real Estate Investment Co (WRFRF), the current Operating Margin % is 72.80% 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 Wharf Real Estate Investment Co (WRFRF) Overvalued in 2026?
Based on GuruFocus' analysis, Wharf Real Estate Investment Co stock appears to be undervalued.
The current stock price of $2.70 is trading 12.9% below its estimated GF Value™ of $3.10.
GuruFocus considers Wharf Real Estate Investment Co to be Modestly Undervalued.
Key valuation signals for WRFRF:
Operating Margin %: 72.80% (near median its 10-year median of 73.41)
GF Value™: $3.10 vs. price of $2.70 (12.9% below fair value)
Industry Position: 450.3% above the Real Estate median (#83 of 1745)
No single metric tells the full story. See the WRFRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wharf Real Estate Investment Co Business Description
Wharf spun off Wharf Real Estate Investment Co. in November 2017. It is a leading property investor with a focus on prime retail assets in Hong Kong. Rental income from flagship assets Harbour City and Times Square accounts for over 85% of revenue. The balance comes from Plaza Hollywood, The Murray, and Marco Polo hotels, and two offices in the central business district. The group also holds two malls in Singapore and a mixed development in Suzhou. Wharf was originally a shipping company but transformed into a property developer and investor in the 1960s by redeveloping its unused industrial assets, many located in city center and waterfront locations. The Harbour City site had been wharfs, and the Times Square site was a tram depot in the 1970s. Wheelock holds a 49% stake in the group.
70GF Score
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