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Hock Lian Seng Holdings (SGX:J2T) 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.
Hock Lian Seng Holdings Operating Margin % Related Terms
Hock Lian Seng Holdings Operating Margin % Historical Data
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The historical data trend for Hock Lian Seng 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:J2T vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Hock Lian Seng 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.
Hock Lian Seng Holdings Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Hock Lian Seng Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hock Lian Seng Holdings's Operating Margin % falls into.
Hock Lian Seng Holdings 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.
Hock Lian Seng 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.
Hock Lian Seng Holdings (SGX:J2T) has a Operating Margin % of -110.17% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hock Lian Seng Holdings and its competitors. According to the industry distribution chart, Hock Lian Seng Holdings ranks #1704 out of 1773 companies in the Construction industry, placing it in the top 96.1%.
Is Hock Lian Seng Holdings' Operating Margin % too high?
Hock Lian Seng Holdings' current Operating Margin % is -110.17%. Based on the distribution chart, Hock Lian Seng Holdings ranks #1704 out of 1773 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Hock Lian Seng Holdings has a GF Score™ of 49/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hock Lian Seng Holdings' Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Hock Lian Seng Holdings ranks #1704 out of 1773 companies for Operating Margin %. This places Hock Lian Seng Holdings in the lower half of its industry. The industry median Operating Margin % is 5.90. 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 5.90, based on 1,773 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 Hock Lian Seng Holdings and its competitors. For the Construction industry, the median Operating Margin % is 5.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hock Lian Seng Holdings's current Operating Margin % is -110.17%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hock Lian Seng Holdings stock overvalued right now?
Based on GuruFocus' analysis, Hock Lian Seng Holdings (SGX:J2T) is currently considered Modestly Overvalued. The stock's GF Value™ is S$0.24, compared to a current price of S$0.29 — trading 20.8% above its estimated fair value. The current Operating Margin % is -110.17%. Hock Lian Seng Holdings' overall GF Score™ is 49/100 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 Hock Lian Seng Holdings (SGX:J2T), the current Operating Margin % is -110.17% 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 Hock Lian Seng Holdings (SGX:J2T) Overvalued in 2026?
Based on GuruFocus' analysis, Hock Lian Seng Holdings stock appears to be overvalued.
The current stock price of S$0.29 is trading 20.8% above its estimated GF Value™ of S$0.24.
GuruFocus considers Hock Lian Seng Holdings to be Modestly Overvalued.
Key valuation signals for SGX:J2T:
Operating Margin %: -110.17%
GF Value™: S$0.24 vs. price of S$0.29 (20.8% above fair value)
No single metric tells the full story. See the SGX:J2T stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hock Lian Seng Holdings Ltd is a civil engineering group undertaking projects for both the public and private sectors in Singapore. The Group carries out civil engineering works for bridges, expressways, tunnels, Mass Rapid Transit, port facilities, water and sewage facilities, and other infrastructure works. Its key customers include government and government-related bodies of Singapore, such as the Land Transport Authority, Housing Development Board, Port of Singapore Authority, etc. Additionally, the Group is involved in property development and property investment businesses with various industrial and residential projects in its portfolio. Its reportable operating segments are: Civil engineering, which generates the maximum revenue, Properties development, and Properties investment.
49GF Score
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