YTL Hospitality REITXKLS:5109 +2.00%79 Operating Margin % is 43.42% as of Mar. 2026, which is 23% above its 10-year median of 35.35. GuruFocus rates XKLS:5109 with a GF Score™ of 79/100 and a GF Value™ of RM1.19 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 750 REITs companies, YTL Hospitality REIT ranks worse than 65.33% on this metric.
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.
YTL Hospitality REIT Operating Margin % Related Terms
YTL Hospitality REIT Operating Margin % Historical Data
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The historical data trend for YTL Hospitality 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.
XKLS:5109 vs HST, RHP, APLE: Operating Margin % Comparison
For the REIT - Hotel & Motel subindustry, YTL Hospitality 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.
YTL Hospitality REIT Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, YTL Hospitality REIT's Operating Margin % distribution charts can be found below:
* The bar in red indicates where YTL Hospitality REIT'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.
YTL Hospitality REIT's Operating Margin % for the fiscal year that ended in Jun. 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.
YTL Hospitality REIT (XKLS:5109) has a Operating Margin % of 43.42% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on YTL Hospitality REIT and its competitors. This is 23% above median its historical median of 35.35. Over the past decade, YTL Hospitality REIT's Operating Margin % has ranged from 24.37 to 41.20. According to the industry distribution chart, YTL Hospitality REIT ranks #490 out of 750 companies in the REITs industry, placing it in the top 65.3%.
Is YTL Hospitality REIT's Operating Margin % too high?
YTL Hospitality REIT's current Operating Margin % of 43.42% is 23% above median its 10-year median of 35.35. Over the past 10 years, this metric has ranged from a low of 24.37 to a high of 41.20. The REITs industry median Operating Margin % is 52.67. YTL Hospitality REIT's value of 43.42% is 17.6% below this industry median. Based on the distribution chart, YTL Hospitality REIT ranks #490 out of 750 companies in the REITs industry, which is below the industry midpoint. Overall, YTL Hospitality REIT has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does YTL Hospitality REIT's Operating Margin % compare to HST and RHP?
According to the REITs industry distribution chart, YTL Hospitality REIT ranks #490 out of 750 companies for Operating Margin %. This places YTL Hospitality REIT in the lower half of its industry. The industry median Operating Margin % is 52.67. YTL Hospitality REIT's value of 43.42% is 17.6% below this benchmark. Historically, YTL Hospitality REIT's own Operating Margin % has ranged from 24.37 to 41.20 over the past decade. While the company's 10-year median is 35.35 vs. the industry median of 52.67, YTL Hospitality REIT 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. YTL Hospitality REIT's current Operating Margin % of 43.42% is 17.6% 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 YTL Hospitality REIT 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. YTL Hospitality REIT's current Operating Margin % is 43.42%, which is 23% above median its own 10-year median of 35.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is YTL Hospitality REIT stock overvalued right now?
Based on GuruFocus' analysis, YTL Hospitality REIT (XKLS:5109) is currently considered Modestly Undervalued. The stock's GF Value™ is RM1.19, compared to a current price of RM1.02 — trading 14.3% below its estimated fair value. The current Operating Margin % is 43.42%, which is 23% above median its 10-year median of 35.35 and 17.6% below the REITs industry median of 52.67. YTL Hospitality REIT's overall GF Score™ is 79/100 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 YTL Hospitality REIT (XKLS:5109), the current Operating Margin % is 43.42% 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 YTL Hospitality REIT (XKLS:5109) Overvalued in 2026?
Based on GuruFocus' analysis, YTL Hospitality REIT stock appears to be undervalued.
The current stock price of RM1.02 is trading 14.3% below its estimated GF Value™ of RM1.19.
GuruFocus considers YTL Hospitality REIT to be Modestly Undervalued.
Key valuation signals for XKLS:5109:
Operating Margin %: 43.42% (23% above median its 10-year median of 35.35)
GF Value™: RM1.19 vs. price of RM1.02 (14.3% below fair value)
Industry Position: 17.6% below the REITs median (#490 of 750)
No single metric tells the full story. See the XKLS:5109 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
YTL Hospitality REIT is a company engaged in the hotel and resort as well as the property development divisions. Its properties include prime hotel and hospitality-related properties, which include JW Marriott Hotel, The Residences at The Ritz-Carlton, the Pangkor Laut, Tanjong Jara, Cameron Highlands resorts, and the AC hotels in Kuala Lumpur. The group's business activity comprises two reportable segments: Property rental and Hotel. The Property Rental segment includes the leasing of hotel properties. The Hotel segment refers to the operation of the hotel business. Geographically, it holds a presence in the regions of Malaysia, Japan, and Australia, with the majority of revenue coming from Malaysia.
79GF Score
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