Aco Group BhdXKLS:0218 +3.23%44 Operating Margin % is 4.00% as of Feb. 2026, which is 20% below its 10-year median of 5.01. GuruFocus rates XKLS:0218 with a GF Score™ of 44/100 and a GF Value™ of RM0.21 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 2,472 Hardware companies, Aco Group Bhd ranks better than 52.55% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Aco Group Bhd's Operating Income for the
three
months ended in Feb. 2026 was RM1.3 Mil. Aco Group Bhd's Revenue for the
three
months ended in Feb. 2026 was RM31.8 Mil. Therefore, Aco Group Bhd's Operating Margin % for the quarter that ended in Feb. 2026 was 4.00%.
Warning Sign:
Aco Group Bhd operating margin has been in a 5-year decline. The average rate of decline per year is -5%.
The historical rank and industry rank for Aco Group Bhd's Operating Margin % or its related term are showing as below:
XKLS:0218'
s Operating Margin % Range Over the Past 10 Years
Min: 3.82 Med: 5.01 Max: 7.59
Current: 4.27
XKLS:0218's Operating Margin % is ranked better than 52.55% of 2472
companies
in the Hardware industry
Industry Median: 3.81
vs XKLS:0218: 4.27
Aco Group Bhd's 5-Year Average Operating Margin % Growth Rate was -5.00% per year.
Aco Group Bhd (XKLS:0218) 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.
Aco Group Bhd Operating Margin % Related Terms
Aco Group Bhd Operating Margin % Historical Data
* Premium members only.
The historical data trend for Aco Group 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:0218 vs SNX, ARW, AVT: Operating Margin % Comparison
For the Electronics & Computer Distribution subindustry, Aco Group 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.
Aco Group Bhd Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Aco Group Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Aco Group 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.
Aco Group Bhd's Operating Margin % for the fiscal year that ended in Feb. 2026 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.
Aco Group Bhd (XKLS:0218) has a Operating Margin % of 4.00% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Aco Group Bhd and its competitors. This is 20% below median its historical median of 5.01. Over the past decade, Aco Group Bhd's Operating Margin % has ranged from 3.82 to 7.59. According to the industry distribution chart, Aco Group Bhd ranks #1173 out of 2472 companies in the Hardware industry, placing it in the top 47.5%.
Is Aco Group Bhd's Operating Margin % too high?
Aco Group Bhd's current Operating Margin % of 4.00% is 20% below median its 10-year median of 5.01. Over the past 10 years, this metric has ranged from a low of 3.82 to a high of 7.59. The Hardware industry median Operating Margin % is 3.81. Aco Group Bhd's value of 4.00% is 5% above this industry median. Based on the distribution chart, Aco Group Bhd ranks #1173 out of 2472 companies in the Hardware industry, which is above the industry midpoint. Overall, Aco Group Bhd has a GF Score™ of 44/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aco Group Bhd's Operating Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, Aco Group Bhd ranks #1173 out of 2472 companies for Operating Margin %. This puts Aco Group Bhd in the upper half of its industry. The industry median Operating Margin % is 3.81. Aco Group Bhd's value of 4.00% is 5% above this benchmark. Historically, Aco Group Bhd's own Operating Margin % has ranged from 3.82 to 7.59 over the past decade. While the company's 10-year median is 5.01 vs. the industry median of 3.81, Aco Group 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.81, based on 2,472 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. Aco Group Bhd's current Operating Margin % of 4.00% is 5% 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 Aco Group Bhd and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aco Group Bhd's current Operating Margin % is 4.00%, which is 20% below median its own 10-year median of 5.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aco Group Bhd stock overvalued right now?
Based on GuruFocus' analysis, Aco Group Bhd (XKLS:0218) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.21, compared to a current price of RM0.16 — trading 23.8% below its estimated fair value. The current Operating Margin % is 4.00%, which is 20% below median its 10-year median of 5.01 and 5% above the Hardware industry median of 3.81. Aco Group Bhd's overall GF Score™ is 44/100 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 Aco Group Bhd (XKLS:0218), the current Operating Margin % is 4.00% as of Feb. 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 Aco Group Bhd (XKLS:0218) Overvalued in 2026?
Based on GuruFocus' analysis, Aco Group Bhd stock appears to be undervalued.
The current stock price of RM0.16 is trading 23.8% below its estimated GF Value™ of RM0.21.
GuruFocus considers Aco Group Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:0218:
Operating Margin %: 4.00% (20% below median its 10-year median of 5.01)
GF Value™: RM0.21 vs. price of RM0.16 (23.8% below fair value)
Industry Position: 5% above the Hardware median (#1173 of 2472)
No single metric tells the full story. See the XKLS:0218 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aco Group Bhd is an investment holding company. Along with its subsidiaries, it is involved in management consultancy activities, distribution of electrical products and accessories, wholesale of household appliances, and trading of electronic, electrical goods, lighting, and lighting accessories. Its product portfolio comprises communication cables and wires, fans and air-conditioners, water heaters, switches and power outlets, and others. The group's reportable operating segments are as follows: Industrial users and Resellers. Maximum revenue is generated from the Industrial users segment, which represents sales of electrical products and accessories to electrical contractors, electrical products manufacturers, and others. Geographically, the group operates mainly in Malaysia.
44GF Score
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