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Far East GroupSGX:5TJ 44 Operating Margin % is -2.07% as of Jun. 2026. GuruFocus rates SGX:5TJ with a GF Score™ of 44/100 and a GF Value™ of S$0.08 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 3,055 Industrial Products companies, Far East Group ranks worse than 61.73% on this metric.
Far East Group (SGX:5TJ) 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.
Far East Group Operating Margin % Related Terms
Far East Group Operating Margin % Historical Data
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The historical data trend for Far East Group'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.
SGX:5TJ vs GEV, ETN, PH: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Far East Group'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.
Far East Group Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Far East Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Far East Group'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.
Far East Group'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.
Far East Group (SGX:5TJ) has a Operating Margin % of -2.07% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Far East Group and its competitors. According to the industry distribution chart, Far East Group ranks #1886 out of 3055 companies in the Industrial Products industry, placing it in the top 61.7%.
Is Far East Group's Operating Margin % too high?
Far East Group's current Operating Margin % is -2.07%. Based on the distribution chart, Far East Group ranks #1886 out of 3055 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Far East Group has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Far East Group's Operating Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Far East Group ranks #1886 out of 3055 companies for Operating Margin %. This places Far East Group in the lower half of its industry. The industry median Operating Margin % is 6.42. 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.42, based on 3,055 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 Far East Group and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Far East Group's current Operating Margin % is -2.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Far East Group stock overvalued right now?
Based on GuruFocus' analysis, Far East Group (SGX:5TJ) is currently considered Significantly Overvalued. The stock's GF Value™ is S$0.08, compared to a current price of S$0.12 — trading 51.3% above its estimated fair value. The current Operating Margin % is -2.07%. Far East Group's overall GF Score™ is 44/100 with 9 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 Far East Group (SGX:5TJ), the current Operating Margin % is -2.07% as of Jun. 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 Far East Group (SGX:5TJ) Overvalued in 2026?
Based on GuruFocus' analysis, Far East Group stock appears to be overvalued.
The current stock price of S$0.12 is trading 51.3% above its estimated GF Value™ of S$0.08.
GuruFocus considers Far East Group to be Significantly Overvalued.
Key valuation signals for SGX:5TJ:
Operating Margin %: -2.07%
GF Value™: S$0.08 vs. price of S$0.12 (51.3% above fair value)
No single metric tells the full story. See the SGX:5TJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Far East Group Ltd is engaged in the manufacturing and trading of refrigeration parts, servicing of cold rooms, and the construction and installation of commercial and industrial cold rooms, along with other related refrigeration activities. Its segments are: the Wholesale and Distribution segment, which generates the majority of revenue and involves the sale of manufactured products, multinational agency products, and other distributed items; the Manufacturing segment, which focuses on the production and sale of energy-efficient heat exchangers, compressor racks, and condensing units; and the Engineering Solutions segment, which provides system design and installation of sustainable engineering solutions for industries. It derives the majority of its revenue from Singapore.
44GF Score
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