Hoe LeongSGX:H20 Operating Margin % is 2.69% as of Dec. 2025, which is 26% above its 10-year median of 2.13. The stock has 3 warning signs investors should review. Among 156 Industrial Distribution companies, Hoe Leong ranks worse than 51.92% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Hoe Leong's Operating Income for the
six
months ended in Dec. 2025 was S$0.47 Mil. Hoe Leong's Revenue for the
six
months ended in Dec. 2025 was S$17.60 Mil. Therefore, Hoe Leong's Operating Margin % for the quarter that ended in Dec. 2025 was 2.69%.
The historical rank and industry rank for Hoe Leong's Operating Margin % or its related term are showing as below:
SGX:H20'
s Operating Margin % Range Over the Past 10 Years
Min: -11.71 Med: 2.13 Max: 6.62
Current: 4.68
SGX:H20's Operating Margin % is ranked worse than 51.92% of 156
companies
in the Industrial Distribution industry
Industry Median: 4.765
vs SGX:H20: 4.68
Hoe Leong's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Hoe Leong's Operating Income for the
six
months ended in Dec. 2025 was S$0.47 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was S$1.80 Mil.
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.
Hoe Leong Operating Margin % Related Terms
Hoe Leong Operating Margin % Historical Data
* Premium members only.
The historical data trend for Hoe Leong'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:H20 vs GWW, FAST, FERG: Operating Margin % Comparison
For the Industrial Distribution subindustry, Hoe Leong'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.
Hoe Leong Operating Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Hoe Leong's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hoe Leong'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.
Hoe Leong'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.
Hoe Leong (SGX:H20) has a Operating Margin % of 2.69% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Hoe Leong and its competitors. This is 26% above median its historical median of 2.13. According to the industry distribution chart, Hoe Leong ranks #81 out of 156 companies in the Industrial Distribution industry, placing it in the top 51.9%.
Is Hoe Leong's Operating Margin % too high?
Hoe Leong's current Operating Margin % of 2.69% is 26% above median its 10-year median of 2.13. The Industrial Distribution industry median Operating Margin % is 4.77. Hoe Leong's value of 2.69% is 43.5% below this industry median. Based on the distribution chart, Hoe Leong ranks #81 out of 156 companies in the Industrial Distribution industry, which is below the industry midpoint.
How does Hoe Leong's Operating Margin % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Hoe Leong ranks #81 out of 156 companies for Operating Margin %. This places Hoe Leong in the lower half of its industry. The industry median Operating Margin % is 4.77. Hoe Leong's value of 2.69% is 43.5% below this benchmark. While the company's 10-year median is 2.13 vs. the industry median of 4.77, Hoe Leong has consistently been below 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 an Industrial Distribution company?
The median Operating Margin % among Industrial Distribution companies is 4.77, based on 156 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. Hoe Leong's current Operating Margin % of 2.69% is 43.5% below 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 Hoe Leong and its competitors. For the Industrial Distribution industry, the median Operating Margin % is 4.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hoe Leong's current Operating Margin % is 2.69%, which is 26% above median its own 10-year median of 2.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hoe Leong stock overvalued right now?
Hoe Leong (SGX:H20) has a current Operating Margin % of 2.69%. The current Operating Margin % is 2.69%, which is 26% above median its 10-year median of 2.13 and 43.5% below the Industrial Distribution industry median of 4.77. 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 Hoe Leong (SGX:H20), the current Operating Margin % is 2.69% 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.
Hoe Leong Corp Ltd specializes in providing undercarriage products, equipment parts, and services for heavy equipment and industrial machinery. Its offerings include an extensive range of parts for bulldozers, excavators, wheel loaders, and off-the-road (OTR) mining dump trucks, such as track frames, track chains and groups, rollers, shoes, sprockets, grouser parts, idlers, and OTR tires. The Group's reportable segments are Design and manufacture, Trading and distribution, and Investment Holding. Maximum revenue is derived from the Design and manufacture segment, which designs, manufactures, and sells equipment parts for both heavy equipment and industrial machinery under in-house brands like KBJ, ROSSI, and MIZU. Geographically, it operates globally and derives key revenue from Australia.
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