Petronas Chemicals Group BhdPECGF 79 Operating Margin % is 9.27% as of Mar. 2026, which is 57% below its 10-year median of 21.35. GuruFocus rates PECGF with a GF Score™ of 79/100 and a GF Value™ of $1.17. The stock has 6 warning signs investors should review. Among 1,585 Chemicals companies, Petronas Chemicals Group Bhd ranks worse than 84.61% on this metric.
Petronas Chemicals Group Bhd has recorded a loss in operating income at least once over the past 3 years.
Petronas Chemicals Group Bhd (OTCPK:PECGF) 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.
Petronas Chemicals Group Bhd Operating Margin % Related Terms
Petronas Chemicals Group Bhd 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.
Petronas Chemicals Group Bhd Operating Margin % Chart
For the Chemicals subindustry, Petronas Chemicals Group Bhd'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.
Petronas Chemicals Group Bhd Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Petronas Chemicals Group Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Petronas Chemicals Group Bhd's Operating Margin % falls into.
Petronas Chemicals Group Bhd 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.
Petronas Chemicals Group Bhd (PECGF) has a Operating Margin % of 9.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Petronas Chemicals Group Bhd and its competitors. This is 57% below median its historical median of 21.35. According to the industry distribution chart, Petronas Chemicals Group Bhd ranks #1341 out of 1585 companies in the Chemicals industry, placing it in the top 84.6%.
Is Petronas Chemicals Group Bhd's Operating Margin % too high?
Petronas Chemicals Group Bhd's current Operating Margin % of 9.27% is 57% below median its 10-year median of 21.35. The Chemicals industry median Operating Margin % is 6.02. Petronas Chemicals Group Bhd's value of 9.27% is 54% above this industry median. Based on the distribution chart, Petronas Chemicals Group Bhd ranks #1341 out of 1585 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Petronas Chemicals Group Bhd has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Petronas Chemicals Group Bhd's Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Petronas Chemicals Group Bhd ranks #1341 out of 1585 companies for Operating Margin %. This places Petronas Chemicals Group Bhd in the lower half of its industry. The industry median Operating Margin % is 6.02. Petronas Chemicals Group Bhd's value of 9.27% is 54% above this benchmark. While the company's 10-year median is 21.35 vs. the industry median of 6.02, Petronas Chemicals Group Bhd 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.02, based on 1,585 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. Petronas Chemicals Group Bhd's current Operating Margin % of 9.27% is 54% 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 Petronas Chemicals Group Bhd 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. Petronas Chemicals Group Bhd's current Operating Margin % is 9.27%, which is 57% below median its own 10-year median of 21.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Petronas Chemicals Group Bhd stock overvalued right now?
Petronas Chemicals Group Bhd (PECGF) has a current Operating Margin % of 9.27%. The stock's GF Value™ is $1.17, compared to a current price of $0.86 — trading 26.8% below its estimated fair value. The current Operating Margin % is 9.27%, which is 57% below median its 10-year median of 21.35 and 54% above the Chemicals industry median of 6.02. Petronas Chemicals Group Bhd's overall GF Score™ is 79/100 with 6 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 Petronas Chemicals Group Bhd (PECGF), the current Operating Margin % is 9.27% 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 Petronas Chemicals Group Bhd (PECGF) Overvalued in 2026?
Based on GuruFocus' analysis, Petronas Chemicals Group Bhd stock appears to be undervalued.
The current stock price of $0.86 is trading 26.8% below its estimated GF Value™ of $1.17.
Key valuation signals for PECGF:
Operating Margin %: 9.27% (57% below median its 10-year median of 21.35)
GF Value™: $1.17 vs. price of $0.86 (26.8% below fair value)
Industry Position: 54% above the Chemicals median (#1341 of 1585)
No single metric tells the full story. See the PECGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Petronas Chemicals Group Bhd manufactures and sells a variety of petrochemicals. The firm organizes itself into three segments based on product type: Olefins and Derivatives; Fertilizers and Methanol, Specialty Chemicals and others. The Olefins and Derivatives segment, which generates the majority of revenue, is engaged in manufacturing and marketing of a wide range of olefin and polymer products, such as Ethylene, Propylene, and Butyl Acetate among others, which are used as a basic feedstock for other products, to intermediate products including basic and high performance chemicals. The majority of the revenue comes from Malaysia and the rest from China, Thailand, Indonesia, Sweden and other regions.
79GF Score
Get the complete analysis for PECGF
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PECGF has been successfully added to your 
