NCT Alliance BhdXKLS:0056 46 Operating Margin % is 29.86% as of Mar. 2026, which is 64% above its 10-year median of 18.25. GuruFocus rates XKLS:0056 with a GF Score™ of 46/100 and a GF Value™ of RM0.39 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 2,812 Software companies, NCT Alliance Bhd ranks better than 88.02% on this metric.
NCT Alliance Bhd (XKLS:0056) 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.
NCT Alliance Bhd Operating Margin % Related Terms
NCT Alliance Bhd Operating Margin % Historical Data
* Premium members only.
The historical data trend for NCT Alliance Bhd'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.
XKLS:0056 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, NCT Alliance Bhd'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.
NCT Alliance Bhd Operating Margin % vs Software Industry
For the Software industry and Technology sector, NCT Alliance Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where NCT Alliance Bhd'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.
NCT Alliance Bhd'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.
NCT Alliance Bhd (XKLS:0056) has a Operating Margin % of 29.86% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on NCT Alliance Bhd and its competitors. This is 64% above median its historical median of 18.25. According to the industry distribution chart, NCT Alliance Bhd ranks #337 out of 2812 companies in the Software industry, placing it in the top 12%.
Is NCT Alliance Bhd's Operating Margin % too high?
NCT Alliance Bhd's current Operating Margin % of 29.86% is 64% above median its 10-year median of 18.25. The Software industry median Operating Margin % is 3.88. NCT Alliance Bhd's value of 29.86% is 670.6% above this industry median. Based on the distribution chart, NCT Alliance Bhd ranks #337 out of 2812 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, NCT Alliance Bhd has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NCT Alliance Bhd's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, NCT Alliance Bhd ranks #337 out of 2812 companies for Operating Margin %. This places NCT Alliance Bhd in the top 12% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.88. NCT Alliance Bhd's value of 29.86% is 670.6% above this benchmark. While the company's 10-year median is 18.25 vs. the industry median of 3.88, NCT Alliance Bhd 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 Software company?
The median Operating Margin % among Software companies is 3.88, based on 2,812 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. NCT Alliance Bhd's current Operating Margin % of 29.86% is 670.6% 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 NCT Alliance Bhd and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NCT Alliance Bhd's current Operating Margin % is 29.86%, which is 64% above median its own 10-year median of 18.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NCT Alliance Bhd stock overvalued right now?
Based on GuruFocus' analysis, NCT Alliance Bhd (XKLS:0056) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.39, compared to a current price of RM0.59 — trading 50% above its estimated fair value. The current Operating Margin % is 29.86%, which is 64% above median its 10-year median of 18.25 and 670.6% above the Software industry median of 3.88. NCT Alliance Bhd's overall GF Score™ is 46/100 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 NCT Alliance Bhd (XKLS:0056), the current Operating Margin % is 29.86% 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 NCT Alliance Bhd (XKLS:0056) Overvalued in 2026?
Based on GuruFocus' analysis, NCT Alliance Bhd stock appears to be overvalued.
The current stock price of RM0.59 is trading 50% above its estimated GF Value™ of RM0.39.
GuruFocus considers NCT Alliance Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:0056:
Operating Margin %: 29.86% (64% above median its 10-year median of 18.25)
GF Value™: RM0.39 vs. price of RM0.59 (50% above fair value)
Industry Position: 670.6% above the Software median (#337 of 2812)
No single metric tells the full story. See the XKLS:0056 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NCT Alliance Bhd, formerly Grand-Flo Bhd is an investment holding company, engaged in the provision of Property development and investment holding. The business activity of the firm is operated through two operating segments namely, Investment holding- Investment holding and project management activities and Property development- Property development activities and sales of completed units. Geographically, the company operates in single segment that is Malaysia.
46GF Score
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