Pavilion Real Estate Investment Trust (XKLS:5212) 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.
Pavilion Real Estate Investment Trust Operating Margin % Related Terms
Pavilion Real Estate Investment 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.
Pavilion Real Estate Investment Trust Operating Margin % Chart
XKLS:5212 vs SPG, O, KIM: Operating Margin % Comparison
For the REIT - Retail subindustry, Pavilion Real Estate Investment 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.
Pavilion Real Estate Investment Trust Operating Margin % vs REITs Industry
Pavilion Real Estate Investment 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.
Pavilion Real Estate Investment Trust (XKLS:5212) has a Operating Margin % of 57.70% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Pavilion Real Estate Investment Trust and its competitors. This is near median its historical median of 56.50. Over the past decade, Pavilion Real Estate Investment Trust's Operating Margin % has ranged from 39.11 to 62.56. According to the industry distribution chart, Pavilion Real Estate Investment Trust ranks #325 out of 747 companies in the REITs industry, placing it in the top 43.5%.
Is Pavilion Real Estate Investment Trust's Operating Margin % too high?
Pavilion Real Estate Investment Trust's current Operating Margin % of 57.70% is near median its 10-year median of 56.50. Over the past 10 years, this metric has ranged from a low of 39.11 to a high of 62.56. The REITs industry median Operating Margin % is 52.63. Pavilion Real Estate Investment Trust's value of 57.70% is 9.6% above this industry median. Based on the distribution chart, Pavilion Real Estate Investment Trust ranks #325 out of 747 companies in the REITs industry, which is above the industry midpoint. Overall, Pavilion Real Estate Investment Trust has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pavilion Real Estate Investment Trust's Operating Margin % compare to SPG and O?
According to the REITs industry distribution chart, Pavilion Real Estate Investment Trust ranks #325 out of 747 companies for Operating Margin %. This puts Pavilion Real Estate Investment Trust in the upper half of its industry. The industry median Operating Margin % is 52.63. Pavilion Real Estate Investment Trust's value of 57.70% is 9.6% above this benchmark. Historically, Pavilion Real Estate Investment Trust's own Operating Margin % has ranged from 39.11 to 62.56 over the past decade. While the company's 10-year median is 56.50 vs. the industry median of 52.63, Pavilion Real Estate Investment 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 52.63, based on 747 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. Pavilion Real Estate Investment Trust's current Operating Margin % of 57.70% is 9.6% 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 Pavilion Real Estate Investment Trust and its competitors. For the REITs industry, the median Operating Margin % is 52.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pavilion Real Estate Investment Trust's current Operating Margin % is 57.70%, which is near median its own 10-year median of 56.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pavilion Real Estate Investment Trust stock overvalued right now?
Based on GuruFocus' analysis, Pavilion Real Estate Investment Trust (XKLS:5212) is currently considered Fairly Valued. The stock's GF Value™ is RM1.59, compared to a current price of RM1.71 — trading 7.5% above its estimated fair value. The current Operating Margin % is 57.70%, which is near median its 10-year median of 56.50 and 9.6% above the REITs industry median of 52.63. Pavilion Real Estate Investment Trust's overall GF Score™ is 84/100 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 Pavilion Real Estate Investment Trust (XKLS:5212), the current Operating Margin % is 57.70% 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 Pavilion Real Estate Investment Trust (XKLS:5212) Overvalued in 2026?
Based on GuruFocus' analysis, Pavilion Real Estate Investment Trust stock appears to be overvalued.
The current stock price of RM1.71 is trading 7.5% above its estimated GF Value™ of RM1.59.
GuruFocus considers Pavilion Real Estate Investment Trust to be Fairly Valued.
Key valuation signals for XKLS:5212:
Operating Margin %: 57.70% (near median its 10-year median of 56.50)
GF Value™: RM1.59 vs. price of RM1.71 (7.5% above fair value)
Industry Position: 9.6% above the REITs median (#325 of 747)
No single metric tells the full story. See the XKLS:5212 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pavilion Real Estate Investment Trust Business Description
Pavilion Real Estate Investment Trust is a REIT established with the principal investment policy of investing, directly and indirectly, in a diversified portfolio of income-producing real estate used predominantly for retail purposes in Malaysia and other countries within the Asia-Pacific region, as well as real estate-related assets. The primary objective is to provide unitholders with regular and stable distributions and achieve long-term growth in net asset value per unit, while maintaining an appropriate capital structure. The company has three reportable segments: Retail, Office, and Hotel. The Retail segment generates the maximum revenue.
84GF Score
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