Lum Chang HoldingsSGX:L19 +4.00%54 Operating Margin % is 5.82% as of Dec. 2025, which is 30% above its 10-year median of 4.47. GuruFocus rates SGX:L19 with a GF Score™ of 54/100 and a GF Value™ of S$0.35 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,762 Construction companies, Lum Chang Holdings ranks better than 52.95% 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.
Lum Chang Holdings Operating Margin % Related Terms
Lum Chang Holdings Operating Margin % Historical Data
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The historical data trend for Lum Chang 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:L19 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Lum Chang 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.
Lum Chang Holdings Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Lum Chang Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lum Chang 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.
Lum Chang Holdings's Operating Margin % for the fiscal year that ended in Jun. 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.
Lum Chang Holdings (SGX:L19) has a Operating Margin % of 5.82% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Lum Chang Holdings and its competitors. This is 30% above median its historical median of 4.47. According to the industry distribution chart, Lum Chang Holdings ranks #829 out of 1762 companies in the Construction industry, placing it in the top 47%.
Is Lum Chang Holdings' Operating Margin % too high?
Lum Chang Holdings' current Operating Margin % of 5.82% is 30% above median its 10-year median of 4.47. The Construction industry median Operating Margin % is 5.90. Lum Chang Holdings' value of 5.82% is 1.3% below this industry median. Based on the distribution chart, Lum Chang Holdings ranks #829 out of 1762 companies in the Construction industry, which is above the industry midpoint. Overall, Lum Chang Holdings has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lum Chang Holdings' Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Lum Chang Holdings ranks #829 out of 1762 companies for Operating Margin %. This puts Lum Chang Holdings in the upper half of its industry. The industry median Operating Margin % is 5.90. Lum Chang Holdings' value of 5.82% is 1.3% below this benchmark. While the company's 10-year median is 4.47 vs. the industry median of 5.90, Lum Chang Holdings 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 a Construction company?
The median Operating Margin % among Construction companies is 5.90, based on 1,762 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. Lum Chang Holdings's current Operating Margin % of 5.82% is 1.3% 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 Lum Chang 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. Lum Chang Holdings's current Operating Margin % is 5.82%, which is 30% above median its own 10-year median of 4.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lum Chang Holdings stock overvalued right now?
Based on GuruFocus' analysis, Lum Chang Holdings (SGX:L19) is currently considered Significantly Overvalued. The stock's GF Value™ is S$0.35, compared to a current price of S$0.52 — trading 48.6% above its estimated fair value. The current Operating Margin % is 5.82%, which is 30% above median its 10-year median of 4.47 and 1.3% below the Construction industry median of 5.90. Lum Chang Holdings' overall GF Score™ is 54/100 with 5 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 Lum Chang Holdings (SGX:L19), the current Operating Margin % is 5.82% 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.
Is Lum Chang Holdings (SGX:L19) Overvalued in 2026?
Based on GuruFocus' analysis, Lum Chang Holdings stock appears to be overvalued.
The current stock price of S$0.52 is trading 48.6% above its estimated GF Value™ of S$0.35.
GuruFocus considers Lum Chang Holdings to be Significantly Overvalued.
Key valuation signals for SGX:L19:
Operating Margin %: 5.82% (30% above median its 10-year median of 4.47)
GF Value™: S$0.35 vs. price of S$0.52 (48.6% above fair value)
Industry Position: 1.3% below the Construction median (#829 of 1762)
No single metric tells the full story. See the SGX:L19 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lum Chang Holdings Ltd is a construction company operating through four segments: Construction; Restoration & Interior Fit-Out; Property Development and Investment; and Investment Holding & Others. The Construction segment, which contributes the majority of the revenue, focuses on building construction, extensions, additions, alterations, refurbishment, and restoration. The Restoration & Interior Fit-Out segment offers niche restoration works, interior fit-outs, and addition and alteration (A&A) projects. The Property Development and Investment segment develops and holds properties for sale and investment, while the Investment Holding & Others segment manages group investments and provides management services.
54GF Score
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