What does operating margin mean?

The profit left from core operations for every dollar of sales, before interest and taxes.

How do you interpret operating margin?

Expanding operating margin shows operating leverage — revenue growing faster than the cost base. Compression points to rising overhead, pricing pressure, or investment ahead of revenue.

How does operating margin compare across companies?

Strong cross-company signal within a sector. Capital-light businesses sustain higher operating margins than capital-intensive ones.

EastGroup Properties EGP Operating margin

Discontinued — last reported Q4 '18

Operating margin at other companies

PrologisPLD

47.5%-1.0pp

MarkelMKL

16.4%-1.7pp

CoStar GroupCSGP

-2.7%-3.9pp

Canadian Pacific Kansas CityCP

37%+1.0pp

Union PacificUNP

40.2%+0.2pp

EMCOR GroupEME

10.1%+0.8pp

Other financials

Income statement

See full

Revenue$190.3M+9.1%

Net income$94.6M+59.2%

EPS (diluted)$1.77+55.3%

Balance sheet

See full

Cash & equivalents$31.4M+52.9%

Total debt$1.8B+23.1%

Total equity$3.6B+6.9%

Total assets$5.5B+7.5%

Cash flow

See full

Operating cash flow$142.3M+6.5%

CapEx$15.6M-21.1%

Free cash flow$126.7M+11.2%

Valuation

See full

Market cap$10.75B+7.7%

Enterprise value$12.51B+9.7%

P/E36.7×-6.9×

P/S14.6×-0.5×

Profitability

See full

Net margin39.7%+5.1pp

FCF margin56.7%+0.8pp

Returns & leverage

See full

Return on equity8.5%+0.8pp

Debt / equity0.5×+0.1×

Where this comes from

Calculated from EastGroup Properties’s reported figures.

operating income/total revenue=36.1%

Based on trailing twelve months.

The official record: EastGroup Properties’s 10-Q, filed October 28, 2020, on SEC EDGAR. View the filing →

Questions, answered.

What does operating margin mean?: The profit left from core operations for every dollar of sales, before interest and taxes.
How do you interpret operating margin?: Expanding operating margin shows operating leverage — revenue growing faster than the cost base. Compression points to rising overhead, pricing pressure, or investment ahead of revenue.
How does operating margin compare across companies?: Strong cross-company signal within a sector. Capital-light businesses sustain higher operating margins than capital-intensive ones.