Richtech Digital BhdXKLS:0342 19 Operating Margin % is 70.33% as of Mar. 2026, which is 18% below its 10-year median of 85.33. GuruFocus rates XKLS:0342 with a GF Score™ of 19/100. The stock has 2 warning signs investors should review. Among 2,816 Software companies, Richtech Digital Bhd ranks better than 99.15% on this metric.
Richtech Digital Bhd (XKLS:0342) 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.
Richtech Digital Bhd Operating Margin % Related Terms
Richtech Digital Bhd Operating Margin % Historical Data
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The historical data trend for Richtech Digital 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:0342 vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Richtech Digital 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.
Richtech Digital Bhd Operating Margin % vs Software Industry
For the Software industry and Technology sector, Richtech Digital Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Richtech Digital Bhd's Operating Margin % falls into.
Richtech Digital 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.
Richtech Digital Bhd's Operating Margin % for the fiscal year that ended in Mar. 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.
Richtech Digital Bhd (XKLS:0342) has a Operating Margin % of 70.33% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Richtech Digital Bhd and its competitors. This is 18% below median its historical median of 85.33. Over the past decade, Richtech Digital Bhd's Operating Margin % has ranged from 61.95 to 87.96. According to the industry distribution chart, Richtech Digital Bhd ranks #24 out of 2816 companies in the Software industry, placing it in the top 0.90000000000001%.
Is Richtech Digital Bhd's Operating Margin % too high?
Richtech Digital Bhd's current Operating Margin % of 70.33% is 18% below median its 10-year median of 85.33. Over the past 10 years, this metric has ranged from a low of 61.95 to a high of 87.96. The Software industry median Operating Margin % is 3.80. Richtech Digital Bhd's value of 70.33% is 1753.2% above this industry median. Based on the distribution chart, Richtech Digital Bhd ranks #24 out of 2816 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Richtech Digital Bhd has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Richtech Digital Bhd's Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Richtech Digital Bhd ranks #24 out of 2816 companies for Operating Margin %. This places Richtech Digital Bhd in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Richtech Digital Bhd's value of 70.33% is 1753.2% above this benchmark. Historically, Richtech Digital Bhd's own Operating Margin % has ranged from 61.95 to 87.96 over the past decade. While the company's 10-year median is 85.33 vs. the industry median of 3.80, Richtech Digital 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 3.80, based on 2,816 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. Richtech Digital Bhd's current Operating Margin % of 70.33% is 1753.2% 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 Richtech Digital Bhd and its competitors. For the Software 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. Richtech Digital Bhd's current Operating Margin % is 70.33%, which is 18% below median its own 10-year median of 85.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Richtech Digital Bhd stock overvalued right now?
Richtech Digital Bhd (XKLS:0342) has a current Operating Margin % of 70.33%. The current Operating Margin % is 70.33%, which is 18% below median its 10-year median of 85.33 and 1753.2% above the Software industry median of 3.80. Richtech Digital Bhd's overall GF Score™ is 19/100 with 2 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 Richtech Digital Bhd (XKLS:0342), the current Operating Margin % is 70.33% 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.
Richtech Digital Bhd is principally an investment holding company. Through its sole Subsidiary, it is principally involved in the distribution of electronic reloads as well as the provision of bill payment services via its SRS platform. SRS corporate users, which refer to: reload retailers (such as resellers, mobile phone shops, sundry shops and apparel shops), which provide electronic reload and bill payment services through utilizing both the front-end interfaces and back-end system of Its SRS platform.
19GF Score
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