Valuetronics HoldingsSGX:BN2 61 Operating Margin % is 6.89% as of Mar. 2026, which is 5% below its 10-year median of 7.23. GuruFocus rates SGX:BN2 with a GF Score™ of 61/100 and a GF Value™ of S$0.62 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,471 Hardware companies, Valuetronics Holdings ranks better than 67.5% 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.
Valuetronics Holdings Operating Margin % Related Terms
Valuetronics Holdings Operating Margin % Historical Data
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The historical data trend for Valuetronics 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.
SGX:BN2 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Valuetronics 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.
Valuetronics Holdings Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Valuetronics Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Valuetronics 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.
Valuetronics Holdings's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Valuetronics Holdings (SGX:BN2) has a Operating Margin % of 6.89% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Valuetronics Holdings and its competitors. This is near median its historical median of 7.23. Over the past decade, Valuetronics Holdings' Operating Margin % has ranged from 5.25 to 8.74. According to the industry distribution chart, Valuetronics Holdings ranks #803 out of 2471 companies in the Hardware industry, placing it in the top 32.5%.
Is Valuetronics Holdings' Operating Margin % too high?
Valuetronics Holdings' current Operating Margin % of 6.89% is near median its 10-year median of 7.23. Over the past 10 years, this metric has ranged from a low of 5.25 to a high of 8.74. The Hardware industry median Operating Margin % is 3.82. Valuetronics Holdings' value of 6.89% is 80.4% above this industry median. Based on the distribution chart, Valuetronics Holdings ranks #803 out of 2471 companies in the Hardware industry, which is above the industry midpoint. Overall, Valuetronics Holdings has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Valuetronics Holdings' Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Valuetronics Holdings ranks #803 out of 2471 companies for Operating Margin %. This puts Valuetronics Holdings in the upper half of its industry. The industry median Operating Margin % is 3.82. Valuetronics Holdings' value of 6.89% is 80.4% above this benchmark. Historically, Valuetronics Holdings' own Operating Margin % has ranged from 5.25 to 8.74 over the past decade. While the company's 10-year median is 7.23 vs. the industry median of 3.82, Valuetronics Holdings 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.82, based on 2,471 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. Valuetronics Holdings's current Operating Margin % of 6.89% is 80.4% 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 Valuetronics Holdings and its competitors. For the Hardware industry, the median Operating Margin % is 3.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Valuetronics Holdings's current Operating Margin % is 6.89%, which is near median its own 10-year median of 7.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Valuetronics Holdings stock overvalued right now?
Based on GuruFocus' analysis, Valuetronics Holdings (SGX:BN2) is currently considered Significantly Overvalued. The stock's GF Value™ is S$0.62, compared to a current price of S$1.08 — trading 74.2% above its estimated fair value. The current Operating Margin % is 6.89%, which is near median its 10-year median of 7.23 and 80.4% above the Hardware industry median of 3.82. Valuetronics Holdings' overall GF Score™ is 61/100 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 Valuetronics Holdings (SGX:BN2), the current Operating Margin % is 6.89% 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 Valuetronics Holdings (SGX:BN2) Overvalued in 2026?
Based on GuruFocus' analysis, Valuetronics Holdings stock appears to be overvalued.
The current stock price of S$1.08 is trading 74.2% above its estimated GF Value™ of S$0.62.
GuruFocus considers Valuetronics Holdings to be Significantly Overvalued.
Key valuation signals for SGX:BN2:
Operating Margin %: 6.89% (near median its 10-year median of 7.23)
GF Value™: S$0.62 vs. price of S$1.08 (74.2% above fair value)
Industry Position: 80.4% above the Hardware median (#803 of 2471)
No single metric tells the full story. See the SGX:BN2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Valuetronics Holdings Ltd is an integrated electronics manufacturing services provider. The company specializes in original equipment manufacturing services as well as original design manufacturing services. It offers a broad combination of design, engineering, manufacturing, and supply chain support services for electronic and electro-mechanical products. It has two reportable segments; Consumer Electronics, and Industrial and Commercial Electronics covering smart lighting products, temperature sensing devices, communication products, automotive products, and medical equipments. The majority of its revenue is derived from the Industrial and Commercial Electronics segment. Geographically, the company generates maximum revenue from the United States of America.
61GF Score
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