Cloudpoint Technology BhdXKLS:0277 63 Operating Margin % is 7.18% as of Mar. 2026, which is 62% below its 10-year median of 18.98. GuruFocus rates XKLS:0277 with a GF Score™ of 63/100 and a GF Value™ of RM0.92 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,818 Software companies, Cloudpoint Technology Bhd ranks better than 80.27% on this metric.
Cloudpoint Technology Bhd (XKLS:0277) 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.
Cloudpoint Technology Bhd Operating Margin % Related Terms
Cloudpoint 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.
Cloudpoint Technology Bhd Operating Margin % Chart
XKLS:0277 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Cloudpoint 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.
Cloudpoint Technology Bhd Operating Margin % vs Software Industry
For the Software industry and Technology sector, Cloudpoint Technology Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cloudpoint Technology Bhd's Operating Margin % falls into.
Cloudpoint 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.
Cloudpoint Technology 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.
Cloudpoint Technology Bhd (XKLS:0277) has a Operating Margin % of 7.18% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Cloudpoint Technology Bhd and its competitors. This is 62% below median its historical median of 18.98. Over the past decade, Cloudpoint Technology Bhd's Operating Margin % has ranged from 14.58 to 22.54. According to the industry distribution chart, Cloudpoint Technology Bhd ranks #556 out of 2818 companies in the Software industry, placing it in the top 19.7%.
Is Cloudpoint Technology Bhd's Operating Margin % too high?
Cloudpoint Technology Bhd's current Operating Margin % of 7.18% is 62% below median its 10-year median of 18.98. Over the past 10 years, this metric has ranged from a low of 14.58 to a high of 22.54. The Software industry median Operating Margin % is 3.87. Cloudpoint Technology Bhd's value of 7.18% is 85.8% above this industry median. Based on the distribution chart, Cloudpoint Technology Bhd ranks #556 out of 2818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Cloudpoint Technology Bhd has a GF Score™ of 63/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cloudpoint Technology Bhd's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Cloudpoint Technology Bhd ranks #556 out of 2818 companies for Operating Margin %. This places Cloudpoint Technology Bhd in the top 20% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. Cloudpoint Technology Bhd's value of 7.18% is 85.8% above this benchmark. Historically, Cloudpoint Technology Bhd's own Operating Margin % has ranged from 14.58 to 22.54 over the past decade. While the company's 10-year median is 18.98 vs. the industry median of 3.87, Cloudpoint Technology 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 2,818 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. Cloudpoint Technology Bhd's current Operating Margin % of 7.18% is 85.8% 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 Cloudpoint Technology 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. Cloudpoint Technology Bhd's current Operating Margin % is 7.18%, which is 62% below median its own 10-year median of 18.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cloudpoint Technology Bhd stock overvalued right now?
Based on GuruFocus' analysis, Cloudpoint Technology Bhd (XKLS:0277) is currently considered Significantly Undervalued. The stock's GF Value™ is RM0.92, compared to a current price of RM0.43 — trading 53.3% below its estimated fair value. The current Operating Margin % is 7.18%, which is 62% below median its 10-year median of 18.98 and 85.8% above the Software industry median of 3.87. Cloudpoint Technology Bhd's overall GF Score™ is 63/100 with 4 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 Cloudpoint Technology Bhd (XKLS:0277), the current Operating Margin % is 7.18% 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 Cloudpoint Technology Bhd (XKLS:0277) Overvalued in 2026?
Based on GuruFocus' analysis, Cloudpoint Technology Bhd stock appears to be undervalued.
The current stock price of RM0.43 is trading 53.3% below its estimated GF Value™ of RM0.92.
GuruFocus considers Cloudpoint Technology Bhd to be Significantly Undervalued.
Key valuation signals for XKLS:0277:
Operating Margin %: 7.18% (62% below median its 10-year median of 18.98)
GF Value™: RM0.92 vs. price of RM0.43 (53.3% below fair value)
Industry Position: 85.8% above the Software median (#556 of 2818)
No single metric tells the full story. See the XKLS:0277 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cloudpoint Technology Bhd is principally an investment holding company. Through its subsidiary, CSSB, it is principally engaged in the provision of IT solutions comprising enterprise and data centre networking, cybersecurity solutions, professional IT services, as well as cloud services and software applications. The company implements solutions and provides its services mainly to large enterprises, particularly companies in the financial services, insurance, telecommunications industries, and other technology service providers in Malaysia. It also provides solutions to multinational companies to cater to their operations based in Malaysia.
63GF Score
Get the complete analysis for XKLS:0277
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XKLS:0277 has been successfully added to your 
