SNS Network Technology BhdXKLS:0259 -1.98%63 Operating Margin % is 1.17% as of Apr. 2026, which is 62% below its 10-year median of 3.10. GuruFocus rates XKLS:0259 with a GF Score™ of 63/100 and a GF Value™ of RM0.70 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 2,471 Hardware companies, SNS Network Technology Bhd ranks worse than 61.07% on this metric.
SNS Network Technology Bhd (XKLS:0259) 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.
SNS Network Technology Bhd Operating Margin % Related Terms
SNS Network Technology Bhd Operating Margin % Historical Data
* 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.
SNS Network Technology Bhd Operating Margin % Chart
XKLS:0259 vs SNX, ARW, AVT: Operating Margin % Comparison
For the Electronics & Computer Distribution subindustry, SNS Network Technology 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.
SNS Network Technology Bhd Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, SNS Network Technology Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SNS Network Technology Bhd's Operating Margin % falls into.
SNS Network Technology 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.
SNS Network Technology Bhd's Operating Margin % for the fiscal year that ended in Jan. 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.
SNS Network Technology Bhd (XKLS:0259) has a Operating Margin % of 1.17% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on SNS Network Technology Bhd and its competitors. This is 62% below median its historical median of 3.10. Over the past decade, SNS Network Technology Bhd's Operating Margin % has ranged from 1.67 to 4.67. According to the industry distribution chart, SNS Network Technology Bhd ranks #1509 out of 2471 companies in the Hardware industry, placing it in the top 61.1%.
Is SNS Network Technology Bhd's Operating Margin % too high?
SNS Network Technology Bhd's current Operating Margin % of 1.17% is 62% below median its 10-year median of 3.10. Over the past 10 years, this metric has ranged from a low of 1.67 to a high of 4.67. The Hardware industry median Operating Margin % is 3.82. SNS Network Technology Bhd's value of 1.17% is 69.4% below this industry median. Based on the distribution chart, SNS Network Technology Bhd ranks #1509 out of 2471 companies in the Hardware industry, which is below the industry midpoint. Overall, SNS Network Technology Bhd has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SNS Network Technology Bhd's Operating Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, SNS Network Technology Bhd ranks #1509 out of 2471 companies for Operating Margin %. This places SNS Network Technology Bhd in the lower half of its industry. The industry median Operating Margin % is 3.82. SNS Network Technology Bhd's value of 1.17% is 69.4% below this benchmark. Historically, SNS Network Technology Bhd's own Operating Margin % has ranged from 1.67 to 4.67 over the past decade. While the company's 10-year median is 3.10 vs. the industry median of 3.82, SNS Network Technology Bhd has consistently been below 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 3.82, based on 2,471 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. SNS Network Technology Bhd's current Operating Margin % of 1.17% is 69.4% below 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 SNS Network Technology Bhd and its competitors. For the Hardware industry, the median Operating Margin % is 3.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SNS Network Technology Bhd's current Operating Margin % is 1.17%, which is 62% below median its own 10-year median of 3.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SNS Network Technology Bhd stock overvalued right now?
Based on GuruFocus' analysis, SNS Network Technology Bhd (XKLS:0259) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.70, compared to a current price of RM0.50 — trading 29.3% below its estimated fair value. The current Operating Margin % is 1.17%, which is 62% below median its 10-year median of 3.10 and 69.4% below the Hardware industry median of 3.82. SNS Network Technology Bhd's overall GF Score™ is 63/100 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 SNS Network Technology Bhd (XKLS:0259), the current Operating Margin % is 1.17% as of Apr. 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 SNS Network Technology Bhd (XKLS:0259) Overvalued in 2026?
Based on GuruFocus' analysis, SNS Network Technology Bhd stock appears to be undervalued.
The current stock price of RM0.50 is trading 29.3% below its estimated GF Value™ of RM0.70.
GuruFocus considers SNS Network Technology Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:0259:
Operating Margin %: 1.17% (62% below median its 10-year median of 3.10)
GF Value™: RM0.70 vs. price of RM0.50 (29.3% below fair value)
Industry Position: 69.4% below the Hardware median (#1509 of 2471)
No single metric tells the full story. See the XKLS:0259 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SNS Network Technology Bhd is an investment holding company. Along with its subsidiaries, it is engaged in the provision of Information Communication Technology (ICT) products, services and solutions. It is organised into 3 main reportable segments as follows: i) Sale of ICT products - comprising hardware, devices and related peripherals, as well as the provision of ICT services and solutions. ii) Provision of device repair and broadband services - provision of device repair and related services and sale of broadband services. and iii) Investment holding - dividend income. The majority of the company's revenue is derived from the Sale of ICT products segment. Geographically, the maximum revenue is generated from Malaysia, followed by Hong Kong, Maldives, Singapore, and others.
63GF Score
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