Edelteq Holdings BhdXKLS:0278 79 Operating Margin % is 1.74% as of Mar. 2026, which is 92% below its 10-year median of 23.05. GuruFocus rates XKLS:0278 with a GF Score™ of 79/100 and a GF Value™ of RM4.86 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 1,023 Semiconductors companies, Edelteq Holdings Bhd ranks worse than 53.27% on this metric.
Edelteq Holdings Bhd (XKLS:0278) 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.
Edelteq Holdings Bhd Operating Margin % Related Terms
Edelteq Holdings Bhd Operating Margin % Historical Data
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The historical data trend for Edelteq Holdings 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:0278 vs NVDA, AVGO, MU: Operating Margin % Comparison
For the Semiconductors subindustry, Edelteq Holdings 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.
Edelteq Holdings Bhd Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Edelteq Holdings Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Edelteq Holdings Bhd's Operating Margin % falls into.
Edelteq Holdings 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.
Edelteq Holdings 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.
Edelteq Holdings Bhd (XKLS:0278) has a Operating Margin % of 1.74% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Edelteq Holdings Bhd and its competitors. This is 92% below median its historical median of 23.05. Over the past decade, Edelteq Holdings Bhd's Operating Margin % has ranged from 4.23 to 40.69. According to the industry distribution chart, Edelteq Holdings Bhd ranks #545 out of 1023 companies in the Semiconductors industry, placing it in the top 53.3%.
Is Edelteq Holdings Bhd's Operating Margin % too high?
Edelteq Holdings Bhd's current Operating Margin % of 1.74% is 92% below median its 10-year median of 23.05. Over the past 10 years, this metric has ranged from a low of 4.23 to a high of 40.69. The Semiconductors industry median Operating Margin % is 5.18. Edelteq Holdings Bhd's value of 1.74% is 66.4% below this industry median. Based on the distribution chart, Edelteq Holdings Bhd ranks #545 out of 1023 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Edelteq Holdings Bhd has a GF Score™ of 79/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Edelteq Holdings Bhd's Operating Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Edelteq Holdings Bhd ranks #545 out of 1023 companies for Operating Margin %. This places Edelteq Holdings Bhd in the lower half of its industry. The industry median Operating Margin % is 5.18. Edelteq Holdings Bhd's value of 1.74% is 66.4% below this benchmark. Historically, Edelteq Holdings Bhd's own Operating Margin % has ranged from 4.23 to 40.69 over the past decade. While the company's 10-year median is 23.05 vs. the industry median of 5.18, Edelteq Holdings 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 Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.18, based on 1,023 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. Edelteq Holdings Bhd's current Operating Margin % of 1.74% is 66.4% 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 Edelteq Holdings Bhd and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Edelteq Holdings Bhd's current Operating Margin % is 1.74%, which is 92% below median its own 10-year median of 23.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Edelteq Holdings Bhd stock overvalued right now?
Based on GuruFocus' analysis, Edelteq Holdings Bhd (XKLS:0278) is currently considered Possible Value Trap. The stock's GF Value™ is RM4.86, compared to a current price of RM0.32 — trading 93.4% below its estimated fair value. The current Operating Margin % is 1.74%, which is 92% below median its 10-year median of 23.05 and 66.4% below the Semiconductors industry median of 5.18. Edelteq Holdings Bhd's overall GF Score™ is 79/100 with 9 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 Edelteq Holdings Bhd (XKLS:0278), the current Operating Margin % is 1.74% 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 Edelteq Holdings Bhd (XKLS:0278) Overvalued in 2026?
Based on GuruFocus' analysis, Edelteq Holdings Bhd stock appears to be undervalued.
The current stock price of RM0.32 is trading 93.4% below its estimated GF Value™ of RM4.86.
GuruFocus considers Edelteq Holdings Bhd to be Possible Value Trap.
Key valuation signals for XKLS:0278:
Operating Margin %: 1.74% (92% below median its 10-year median of 23.05)
GF Value™: RM4.86 vs. price of RM0.32 (93.4% below fair value)
Industry Position: 66.4% below the Semiconductors median (#545 of 1023)
No single metric tells the full story. See the XKLS:0278 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Edelteq Holdings Bhd is an investment holding company and through its subsidiaries, it is principally involved in the provision of engineering support for IC assembly and test processes in the semiconductor industry. The company is a semiconductor manufacturing solutions provider. It operates in three segments: Semiconductor Consumables and Materials (SCM) that involves Design and assembly of IC burn-in boards and supply of PCB, supply and refurbishment of IC assembly and test consumables and trading of industrial material; Semiconductor Equipment and Automation (SEA) Design, development, assembly of ATE and factory automation; and Investment holding segment. SCM segment derives maximum revenue for the company. Geographically, it derives maximum revenue from Singapore.
79GF Score
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