PT Aracord Nusantara Group Tbk (ISX:RONY) 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 Aracord Nusantara Group Tbk Operating Margin % Related Terms
PT Aracord Nusantara Group Tbk 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.
PT Aracord Nusantara Group Tbk Operating Margin % Chart
ISX:RONY vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, PT Aracord Nusantara Group 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 Aracord Nusantara Group Tbk Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, PT Aracord Nusantara Group Tbk's Operating Margin % distribution charts can be found below:
* The bar in red indicates where PT Aracord Nusantara Group Tbk's Operating Margin % falls into.
PT Aracord Nusantara Group Tbk 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.
PT Aracord Nusantara Group Tbk (ISX:RONY) has a Operating Margin % of -8.95% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on PT Aracord Nusantara Group Tbk and its competitors. Over the past decade, PT Aracord Nusantara Group Tbk's Operating Margin % has ranged from 5.70 to 37.15. According to the industry distribution chart, PT Aracord Nusantara Group Tbk ranks #856 out of 1767 companies in the Construction industry, placing it in the top 48.4%.
Is PT Aracord Nusantara Group Tbk's Operating Margin % too high?
PT Aracord Nusantara Group Tbk's current Operating Margin % is -8.95%. Over the past 10 years, this metric has ranged from a low of 5.70 to a high of 37.15. Based on the distribution chart, PT Aracord Nusantara Group Tbk ranks #856 out of 1767 companies in the Construction industry, which is above the industry midpoint. Overall, PT Aracord Nusantara Group Tbk has a GF Score™ of 39/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PT Aracord Nusantara Group Tbk's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, PT Aracord Nusantara Group Tbk ranks #856 out of 1767 companies for Operating Margin %. This puts PT Aracord Nusantara Group Tbk in the upper half of its industry. The industry median Operating Margin % is 5.89. Historically, PT Aracord Nusantara Group Tbk's own Operating Margin % has ranged from 5.70 to 37.15 over the past decade. 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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. 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 Aracord Nusantara Group Tbk and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Aracord Nusantara Group Tbk's current Operating Margin % is -8.95%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Aracord Nusantara Group Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Aracord Nusantara Group Tbk (ISX:RONY) is currently considered Significantly Undervalued. The stock's GF Value™ is Rp4,114.88, compared to a current price of Rp1,145.00 — trading 72.2% below its estimated fair value. The current Operating Margin % is -8.95%. PT Aracord Nusantara Group Tbk's overall GF Score™ is 39/100. 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 Aracord Nusantara Group Tbk (ISX:RONY), the current Operating Margin % is -8.95% 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 Aracord Nusantara Group Tbk (ISX:RONY) Overvalued in 2026?
Based on GuruFocus' analysis, PT Aracord Nusantara Group Tbk stock appears to be undervalued.
The current stock price of Rp1,145.00 is trading 72.2% below its estimated GF Value™ of Rp4,114.88.
GuruFocus considers PT Aracord Nusantara Group Tbk to be Significantly Undervalued.
Key valuation signals for ISX:RONY:
Operating Margin %: -8.95%
GF Value™: Rp4,114.88 vs. price of Rp1,145.00 (72.2% below fair value)
No single metric tells the full story. See the ISX:RONY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Aracord Nusantara Group Tbk Business Description
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