Securemetric BhdXKLS:0203 -5.00% Operating Margin % is 10.51% as of Mar. 2026, which is 112% above its 10-year median of 4.96. The stock has 3 warning signs investors should review. Among 2,811 Software companies, Securemetric Bhd ranks better than 65.6% on this metric.
Securemetric Bhd (XKLS:0203) 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.
Securemetric Bhd Operating Margin % Related Terms
Securemetric Bhd Operating Margin % Historical Data
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The historical data trend for Securemetric 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:0203 vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Securemetric 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.
Securemetric Bhd Operating Margin % vs Software Industry
For the Software industry and Technology sector, Securemetric Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Securemetric 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.
Securemetric 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.
Securemetric Bhd (XKLS:0203) has a Operating Margin % of 10.51% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Securemetric Bhd and its competitors. This is 112% above median its historical median of 4.96. According to the industry distribution chart, Securemetric Bhd ranks #967 out of 2811 companies in the Software industry, placing it in the top 34.4%.
Is Securemetric Bhd's Operating Margin % too high?
Securemetric Bhd's current Operating Margin % of 10.51% is 112% above median its 10-year median of 4.96. The Software industry median Operating Margin % is 3.87. Securemetric Bhd's value of 10.51% is 171.6% above this industry median. Based on the distribution chart, Securemetric Bhd ranks #967 out of 2811 companies in the Software industry, which is above the industry midpoint.
How does Securemetric Bhd's Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Securemetric Bhd ranks #967 out of 2811 companies for Operating Margin %. This puts Securemetric Bhd in the upper half of its industry. The industry median Operating Margin % is 3.87. Securemetric Bhd's value of 10.51% is 171.6% above this benchmark. While the company's 10-year median is 4.96 vs. the industry median of 3.87, Securemetric 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 3.87, based on 2,811 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. Securemetric Bhd's current Operating Margin % of 10.51% is 171.6% 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 Securemetric Bhd and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Securemetric Bhd's current Operating Margin % is 10.51%, which is 112% above median its own 10-year median of 4.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Securemetric Bhd stock overvalued right now?
Based on GuruFocus' analysis, Securemetric Bhd (XKLS:0203) is currently considered Significantly Undervalued. The stock's GF Value™ is RM0.16, compared to a current price of RM0.10 — trading 40.6% below its estimated fair value. The current Operating Margin % is 10.51%, which is 112% above median its 10-year median of 4.96 and 171.6% above the Software industry median of 3.87. 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 Securemetric Bhd (XKLS:0203), the current Operating Margin % is 10.51% 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.
Securemetric Bhd is an investment holding company. Along with its subsidiaries, it is engaged in the provision of digital security solutions, trading of electronic identification products, and other related services. The group's business segments are Digital security solutions, Electronic identification products, Maintenance services, and Others. A majority of its revenue is generated from the Digital security solutions segment, which provides solutions related to two-factor authentication (2FA), PKI solutions, software licensing, protection dongles, and the CENTAGATE software, which manages user authentication and supports multi-factor and multi-channel authentication and digital signing solutions (SigningCloud). Geographically, the group generates maximum revenue from the Philippines.
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