PT Lautan Luas TbkISX:LTLS -1.27%67 Operating Margin % is 4.81% as of Mar. 2026, which is 26% below its 10-year median of 6.52. GuruFocus rates ISX:LTLS with a GF Score™ of 67/100 and a GF Value™ of Rp1,215.44 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 1,580 Chemicals companies, PT Lautan Luas Tbk ranks worse than 54.87% on this metric.
PT Lautan Luas Tbk (ISX:LTLS) 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.
PT Lautan Luas Tbk Operating Margin % Related Terms
PT Lautan Luas Tbk Operating Margin % Historical Data
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The historical data trend for PT Lautan Luas Tbk'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.
ISX:LTLS vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, PT Lautan Luas Tbk'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.
PT Lautan Luas Tbk Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, PT Lautan Luas Tbk's Operating Margin % distribution charts can be found below:
* The bar in red indicates where PT Lautan Luas Tbk'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.
PT Lautan Luas Tbk's Operating Margin % for the fiscal year that ended in Dec. 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.
PT Lautan Luas Tbk (ISX:LTLS) has a Operating Margin % of 4.81% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on PT Lautan Luas Tbk and its competitors. This is 26% below median its historical median of 6.52. Over the past decade, PT Lautan Luas Tbk's Operating Margin % has ranged from 5.05 to 8.48. According to the industry distribution chart, PT Lautan Luas Tbk ranks #867 out of 1580 companies in the Chemicals industry, placing it in the top 54.9%.
Is PT Lautan Luas Tbk's Operating Margin % too high?
PT Lautan Luas Tbk's current Operating Margin % of 4.81% is 26% below median its 10-year median of 6.52. Over the past 10 years, this metric has ranged from a low of 5.05 to a high of 8.48. The Chemicals industry median Operating Margin % is 6.02. PT Lautan Luas Tbk's value of 4.81% is 20% below this industry median. Based on the distribution chart, PT Lautan Luas Tbk ranks #867 out of 1580 companies in the Chemicals industry, which is below the industry midpoint. Overall, PT Lautan Luas Tbk has a GF Score™ of 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PT Lautan Luas Tbk's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, PT Lautan Luas Tbk ranks #867 out of 1580 companies for Operating Margin %. This places PT Lautan Luas Tbk in the lower half of its industry. The industry median Operating Margin % is 6.02. PT Lautan Luas Tbk's value of 4.81% is 20% below this benchmark. Historically, PT Lautan Luas Tbk's own Operating Margin % has ranged from 5.05 to 8.48 over the past decade. While the company's 10-year median is 6.52 vs. the industry median of 6.02, PT Lautan Luas Tbk 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.02, based on 1,580 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. PT Lautan Luas Tbk's current Operating Margin % of 4.81% is 20% 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 PT Lautan Luas Tbk and its competitors. For the Chemicals industry, the median Operating Margin % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Lautan Luas Tbk's current Operating Margin % is 4.81%, which is 26% below median its own 10-year median of 6.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Lautan Luas Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Lautan Luas Tbk (ISX:LTLS) is currently considered Significantly Undervalued. The stock's GF Value™ is Rp1,215.44, compared to a current price of Rp780.00 — trading 35.8% below its estimated fair value. The current Operating Margin % is 4.81%, which is 26% below median its 10-year median of 6.52 and 20% below the Chemicals industry median of 6.02. PT Lautan Luas Tbk's overall GF Score™ is 67/100 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 PT Lautan Luas Tbk (ISX:LTLS), the current Operating Margin % is 4.81% 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 PT Lautan Luas Tbk (ISX:LTLS) Overvalued in 2026?
Based on GuruFocus' analysis, PT Lautan Luas Tbk stock appears to be undervalued.
The current stock price of Rp780.00 is trading 35.8% below its estimated GF Value™ of Rp1,215.44.
GuruFocus considers PT Lautan Luas Tbk to be Significantly Undervalued.
Key valuation signals for ISX:LTLS:
Operating Margin %: 4.81% (26% below median its 10-year median of 6.52)
GF Value™: Rp1,215.44 vs. price of Rp780.00 (35.8% below fair value)
Industry Position: 20% below the Chemicals median (#867 of 1580)
No single metric tells the full story. See the ISX:LTLS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Lautan Luas Tbk deals in the manufacturing and distribution of basic and specialty chemicals. It provides services and solutions for corporate customers as well as offers logistics and supply chain, water treatment, and information technology solutions. The company operates in three business segments: Distribution, Manufacturing, and Services. The Distribution segment offers a variety of services and solutions to industries, which also contribute to a portion of the company's revenue. The Manufacturing segment consists of the production of chemicals and other products from its multiple manufacturing facilities located in Indonesia. Finally, the Services segment includes logistics and supply chain businesses. It derives maximum revenue from Distribution segment.
67GF Score
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