Northeast Group BhdXKLS:0325 +3.92%21 Operating Margin % is 37.65% as of Mar. 2026, which is 66% above its 10-year median of 22.74. GuruFocus rates XKLS:0325 with a GF Score™ of 21/100. The stock has 4 warning signs investors should review. Among 2,472 Hardware companies, Northeast Group Bhd ranks better than 97.13% on this metric.
Northeast Group Bhd (XKLS:0325) 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.
Northeast Group Bhd Operating Margin % Related Terms
Northeast Group Bhd Operating Margin % Historical Data
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The historical data trend for Northeast 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:0325 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Northeast 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.
Northeast Group Bhd Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Northeast Group Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Northeast Group Bhd's Operating Margin % falls into.
Northeast Group 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.
Northeast Group Bhd's Operating Margin % for the fiscal year that ended in Sep. 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.
Northeast Group Bhd (XKLS:0325) has a Operating Margin % of 37.65% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Northeast Group Bhd and its competitors. This is 66% above median its historical median of 22.74. Over the past decade, Northeast Group Bhd's Operating Margin % has ranged from 19.39 to 29.46. According to the industry distribution chart, Northeast Group Bhd ranks #71 out of 2472 companies in the Hardware industry, placing it in the top 2.9%.
Is Northeast Group Bhd's Operating Margin % too high?
Northeast Group Bhd's current Operating Margin % of 37.65% is 66% above median its 10-year median of 22.74. Over the past 10 years, this metric has ranged from a low of 19.39 to a high of 29.46. The Hardware industry median Operating Margin % is 3.80. Northeast Group Bhd's value of 37.65% is 890.8% above this industry median. Based on the distribution chart, Northeast Group Bhd ranks #71 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Northeast Group Bhd has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Northeast Group Bhd's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Northeast Group Bhd ranks #71 out of 2472 companies for Operating Margin %. This places Northeast Group Bhd in the top 3% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Northeast Group Bhd's value of 37.65% is 890.8% above this benchmark. Historically, Northeast Group Bhd's own Operating Margin % has ranged from 19.39 to 29.46 over the past decade. While the company's 10-year median is 22.74 vs. the industry median of 3.80, Northeast 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 3.80, 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. Northeast Group Bhd's current Operating Margin % of 37.65% is 890.8% 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 Northeast Group Bhd and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northeast Group Bhd's current Operating Margin % is 37.65%, which is 66% above median its own 10-year median of 22.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northeast Group Bhd stock overvalued right now?
Northeast Group Bhd (XKLS:0325) has a current Operating Margin % of 37.65%. The current Operating Margin % is 37.65%, which is 66% above median its 10-year median of 22.74 and 890.8% above the Hardware industry median of 3.80. Northeast Group Bhd's overall GF Score™ is 21/100 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 Northeast Group Bhd (XKLS:0325), the current Operating Margin % is 37.65% 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.
Northeast Group Bhd is an investment holding company. The company, along with its subsidiaries, is principally engaged in the manufacturing of precision engineering components. It also provides related services including Surface Finishing, Sheet Metal Fabrication and Mechanical Sub-Assembly. The company serves various industries, including photonics, electrical and electronics (E&E), semiconductor, telecommunication, and optoelectronics. The majority of the company's revenue is derived from Malaysia, and the rest from North America, Europe, Other Asian countries, Oceania and South America.
21GF Score
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