SL Innovation Capital Bhd (XKLS:03008) 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.
SL Innovation Capital Bhd Operating Margin % Related Terms
SL Innovation Capital 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.
SL Innovation Capital Bhd Operating Margin % Chart
XKLS:03008 vs ACN, IBM, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, SL Innovation Capital 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.
SL Innovation Capital Bhd Operating Margin % vs Software Industry
For the Software industry and Technology sector, SL Innovation Capital Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SL Innovation Capital Bhd's Operating Margin % falls into.
SL Innovation Capital 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.
SL Innovation Capital 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.
SL Innovation Capital Bhd (XKLS:03008) has a Operating Margin % of 7.56% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on SL Innovation Capital Bhd and its competitors. This is 13% below median its historical median of 8.71. Over the past decade, SL Innovation Capital Bhd's Operating Margin % has ranged from 6.74 to 14.98.
Is SL Innovation Capital Bhd's Operating Margin % too high?
SL Innovation Capital Bhd's current Operating Margin % of 7.56% is 13% below median its 10-year median of 8.71. Over the past 10 years, this metric has ranged from a low of 6.74 to a high of 14.98. The Software industry median Operating Margin % is 3.87. SL Innovation Capital Bhd's value of 7.56% is 95.6% above this industry median. Overall, SL Innovation Capital Bhd has a GF Score™ of 54/100, reflecting its overall financial health beyond just this single metric.
How does SL Innovation Capital Bhd's Operating Margin % compare to ACN and IBM?
SL Innovation Capital Bhd's Operating Margin % of 7.56% can be compared against companies in the Software industry. The industry median Operating Margin % is 3.87. SL Innovation Capital Bhd's value of 7.56% is 95.6% above this benchmark. Historically, SL Innovation Capital Bhd's own Operating Margin % has ranged from 6.74 to 14.98 over the past decade. While the company's 10-year median is 8.71 vs. the industry median of 3.87, SL Innovation Capital 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 2,820 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. SL Innovation Capital Bhd's current Operating Margin % of 7.56% is 95.6% 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 SL Innovation Capital 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. SL Innovation Capital Bhd's current Operating Margin % is 7.56%, which is 13% below median its own 10-year median of 8.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SL Innovation Capital Bhd stock overvalued right now?
SL Innovation Capital Bhd (XKLS:03008) has a current Operating Margin % of 7.56%. The stock's GF Value™ is RM0.50, compared to a current price of RM0.69 — trading 37% above its estimated fair value. The current Operating Margin % is 7.56%, which is 13% below median its 10-year median of 8.71 and 95.6% above the Software industry median of 3.87. SL Innovation Capital Bhd's overall GF Score™ is 54/100 with 7 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 SL Innovation Capital Bhd (XKLS:03008), the current Operating Margin % is 7.56% as of Dec. 2025. 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 SL Innovation Capital Bhd (XKLS:03008) Overvalued in 2026?
Based on GuruFocus' analysis, SL Innovation Capital Bhd stock appears to be overvalued.
The current stock price of RM0.69 is trading 37% above its estimated GF Value™ of RM0.50.
Key valuation signals for XKLS:03008:
Operating Margin %: 7.56% (13% below median its 10-year median of 8.71)
GF Value™: RM0.50 vs. price of RM0.69 (37% above fair value)
Industry Position: 95.6% above the Software median
No single metric tells the full story. See the XKLS:03008 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SL Innovation Capital Bhd provides management services. Along with its subsidiaries, it operates in the following reportable segments based on its products and services; IT infrastructure technology solutions, Business process automation solutions, and Others. Maximum revenue is generated from its IT infrastructure technology solutions segment, which provides hardware, system software, network resources, and related accessories required in the operation and management of an enterprise's IT environment. The business process automation solutions segment offers business process management software, and the Others segment provides management and operation services. Geographically, the company derives its key revenue from Malaysia followed by Indonesia, Korea, Myanmar, and Singapore.
54GF Score
Get the complete analysis for XKLS:03008
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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