Megan HoldingsMGN -12.29%24 Operating Margin % is -3.30% as of Dec. 2025. GuruFocus rates MGN with a GF Score™ of 24/100. The stock has 4 warning signs investors should review. Among 1,767 Construction companies, Megan Holdings ranks worse than 76.4% 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.
Megan Holdings Operating Margin % Related Terms
Megan Holdings Operating Margin % Historical Data
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The historical data trend for Megan Holdings'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.
MGN vs OFAL, MSGY, FBGL: Operating Margin % Comparison
For the Engineering & Construction subindustry, Megan Holdings'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.
Megan Holdings Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Megan Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Megan Holdings'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.
Megan Holdings'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.
Megan Holdings (MGN) has a Operating Margin % of -3.30% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Megan Holdings and its competitors. Over the past decade, Megan Holdings' Operating Margin % has ranged from 0.63 to 16.24. According to the industry distribution chart, Megan Holdings ranks #1350 out of 1767 companies in the Construction industry, placing it in the top 76.4%.
Is Megan Holdings' Operating Margin % too high?
Megan Holdings' current Operating Margin % is -3.30%. Over the past 10 years, this metric has ranged from a low of 0.63 to a high of 16.24. Based on the distribution chart, Megan Holdings ranks #1350 out of 1767 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Megan Holdings has a GF Score™ of 24/100, reflecting its overall financial health beyond just this single metric.
How does Megan Holdings' Operating Margin % compare to OFAL and MSGY?
According to the Construction industry distribution chart, Megan Holdings ranks #1350 out of 1767 companies for Operating Margin %. This places Megan Holdings in the lower half of its industry. The industry median Operating Margin % is 5.89. Historically, Megan Holdings' own Operating Margin % has ranged from 0.63 to 16.24 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 Megan Holdings 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. Megan Holdings's current Operating Margin % is -3.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Megan Holdings stock overvalued right now?
Megan Holdings (MGN) has a current Operating Margin % of -3.30%. The current Operating Margin % is -3.30%. Megan Holdings' overall GF Score™ is 24/100 with 4 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 Megan Holdings (MGN), the current Operating Margin % is -3.30% as of Dec. 2025. 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.
Megan Holdings Ltd is principally engaged in the development, construction and maintenance of aquaculture farms and related works. Its operations are based in Malaysia. The company's operating segments include: Aquaculture and agriculture; Industrial solutions; and Investment in marketable securities. It derives maximum revenue from Aquaculture and agriculture, which involves development, construction, and maintenance of aquaculture and agriculture farms and related works.
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