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.
Alpina Holdings Operating Margin % Related Terms
Alpina Holdings Operating Margin % Historical Data
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The historical data trend for Alpina 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:ZXY vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Alpina 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.
Alpina Holdings Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Alpina Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Alpina 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.
Alpina Holdings's Operating Margin % for the fiscal year that ended in Dec. 2024 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.
Alpina Holdings (SGX:ZXY) has a Operating Margin % of 7.79% as of Jun. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Alpina Holdings and its competitors. This is 10% above median its historical median of 7.10.
Is Alpina Holdings' Operating Margin % too high?
Alpina Holdings' current Operating Margin % of 7.79% is 10% above median its 10-year median of 7.10. The Construction industry median Operating Margin % is 5.90. Alpina Holdings' value of 7.79% is 32.1% above this industry median. Overall, Alpina Holdings has a GF Score™ of 40/100, reflecting its overall financial health beyond just this single metric.
How does Alpina Holdings' Operating Margin % compare to PWR and FIX?
Alpina Holdings' Operating Margin % of 7.79% can be compared against companies in the Construction industry. The industry median Operating Margin % is 5.90. Alpina Holdings' value of 7.79% is 32.1% above this benchmark. While the company's 10-year median is 7.10 vs. the industry median of 5.90, Alpina 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 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. Alpina Holdings's current Operating Margin % of 7.79% is 32.1% 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 Alpina 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. Alpina Holdings's current Operating Margin % is 7.79%, which is 10% above median its own 10-year median of 7.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alpina Holdings stock overvalued right now?
Alpina Holdings (SGX:ZXY) has a current Operating Margin % of 7.79%. The stock's GF Value™ is S$0.35, compared to a current price of S$0.37 — trading 5.7% above its estimated fair value. The current Operating Margin % is 7.79%, which is 10% above median its 10-year median of 7.10 and 32.1% above the Construction industry median of 5.90. Alpina Holdings' overall GF Score™ is 40/100 with 10 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 Alpina Holdings (SGX:ZXY), the current Operating Margin % is 7.79% as of Jun. 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 Alpina Holdings (SGX:ZXY) Overvalued in 2026?
Based on GuruFocus' analysis, Alpina Holdings stock appears to be overvalued.
The current stock price of S$0.37 is trading 5.7% above its estimated GF Value™ of S$0.35.
Key valuation signals for SGX:ZXY:
Operating Margin %: 7.79% (10% above median its 10-year median of 7.10)
GF Value™: S$0.35 vs. price of S$0.37 (5.7% above fair value)
Industry Position: 32.1% above the Construction median
No single metric tells the full story. See the SGX:ZXY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alpina Holdings Ltd is an established Singapore-based contractor that specializes in providing Integrated Building Services (IBS), Mechanical and Electrical (M&E) engineering services, Alteration and Addition (A&A), and Rental income from investment property (RI). The group provides IBS and M&E engineering services mainly as the main contractor and provides A&A works as a subcontractor. The majority of revenue is derived from the IBS segment.
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