YGL Convergence BhdXKLS:0086 +6.25% Operating Margin % is -73.03% as of Mar. 2026. The stock has 4 warning signs investors should review. Among 2,475 Hardware companies, YGL Convergence Bhd ranks worse than 90.55% on this metric.
YGL Convergence Bhd (XKLS:0086) 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.
YGL Convergence Bhd Operating Margin % Related Terms
YGL Convergence Bhd Operating Margin % Historical Data
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The historical data trend for YGL Convergence 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:0086 vs SNX, ARW, AVT: Operating Margin % Comparison
For the Electronics & Computer Distribution subindustry, YGL Convergence 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.
YGL Convergence Bhd Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, YGL Convergence Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where YGL Convergence Bhd's Operating Margin % falls into.
YGL Convergence Bhd 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.
YGL Convergence Bhd's Operating Margin % for the fiscal year that ended in Mar. 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.
YGL Convergence Bhd (XKLS:0086) has a Operating Margin % of -73.03% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on YGL Convergence Bhd and its competitors. According to the industry distribution chart, YGL Convergence Bhd ranks #2241 out of 2475 companies in the Hardware industry, placing it in the top 90.5%.
Is YGL Convergence Bhd's Operating Margin % too high?
YGL Convergence Bhd's current Operating Margin % is -73.03%. Based on the distribution chart, YGL Convergence Bhd ranks #2241 out of 2475 companies in the Hardware industry, which is in the bottom quartile relative to peers.
How does YGL Convergence Bhd's Operating Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, YGL Convergence Bhd ranks #2241 out of 2475 companies for Operating Margin %. This places YGL Convergence Bhd in the lower half of its industry. The industry median Operating Margin % is 3.80. 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,475 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 YGL Convergence Bhd and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. YGL Convergence Bhd's current Operating Margin % is -73.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is YGL Convergence Bhd stock overvalued right now?
Based on GuruFocus' analysis, YGL Convergence Bhd (XKLS:0086) is currently considered Fairly Valued. The stock's GF Value™ is RM0.08, compared to a current price of RM0.09 — trading 6.3% above its estimated fair value. The current Operating Margin % is -73.03%. 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 YGL Convergence Bhd (XKLS:0086), the current Operating Margin % is -73.03% 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.
YGL Convergence Bhd is principally engaged in the marketing and distribution of computer software and hardware, and the provision of professional services. The Group's reportable segments include Software Implementation, which involves software installation, commissioning, support, and maintenance services and related activities; the Solar Panel Installation segment, which provides engineering, procurement, construction, and commissioning services in solar energy solutions and related services; and Investment Holding. The majority of the company's revenue is derived from software and panel installations. The company's geographical segments include Malaysia and Hong Kong, with Malaysia contributing the majority of its revenue.
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