Pentech Holdings BhdXKLS:0457 -9.68%16 Operating Margin % is 6.04% as of Dec. 2025, which is 0% above its 10-year median of 6.03. GuruFocus rates XKLS:0457 with a GF Score™ of 16/100. The stock has 1 warning sign investors should review. Among 2,816 Software companies, Pentech Holdings Bhd ranks better than 57.1% on this metric.
Pentech Holdings Bhd (XKLS:0457) 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.
Pentech Holdings Bhd Operating Margin % Related Terms
Pentech Holdings Bhd Operating Margin % Historical Data
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The historical data trend for Pentech 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.
Pentech Holdings Bhd Operating Margin % Chart
Pentech Holdings Bhd Annual Data
Trend
Dec22
Dec23
Dec24
Dec25
Operating Margin %
4.67
6.01
6.90
6.04
Pentech Holdings Bhd Semi-Annual Data
Dec22
Dec23
Dec24
Dec25
Operating Margin %
4.67
6.01
6.90
6.04
XKLS:0457 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Pentech 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.
Pentech Holdings Bhd Operating Margin % vs Software Industry
For the Software industry and Technology sector, Pentech Holdings Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Pentech Holdings Bhd's Operating Margin % falls into.
Pentech 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.
Pentech 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.
Pentech Holdings Bhd (XKLS:0457) has a Operating Margin % of 6.04% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Pentech Holdings Bhd and its competitors. This is near median its historical median of 6.03. Over the past decade, Pentech Holdings Bhd's Operating Margin % has ranged from 4.67 to 6.90. According to the industry distribution chart, Pentech Holdings Bhd ranks #1208 out of 2816 companies in the Software industry, placing it in the top 42.9%.
Is Pentech Holdings Bhd's Operating Margin % too high?
Pentech Holdings Bhd's current Operating Margin % of 6.04% is near median its 10-year median of 6.03. Over the past 10 years, this metric has ranged from a low of 4.67 to a high of 6.90. The Software industry median Operating Margin % is 3.80. Pentech Holdings Bhd's value of 6.04% is 59.2% above this industry median. Based on the distribution chart, Pentech Holdings Bhd ranks #1208 out of 2816 companies in the Software industry, which is above the industry midpoint. Overall, Pentech Holdings Bhd has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Pentech Holdings Bhd's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Pentech Holdings Bhd ranks #1208 out of 2816 companies for Operating Margin %. This puts Pentech Holdings Bhd in the upper half of its industry. The industry median Operating Margin % is 3.80. Pentech Holdings Bhd's value of 6.04% is 59.2% above this benchmark. Historically, Pentech Holdings Bhd's own Operating Margin % has ranged from 4.67 to 6.90 over the past decade. While the company's 10-year median is 6.03 vs. the industry median of 3.80, Pentech Holdings 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. Pentech Holdings Bhd's current Operating Margin % of 6.04% is 59.2% 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 Pentech Holdings 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. Pentech Holdings Bhd's current Operating Margin % is 6.04%, which is near median its own 10-year median of 6.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pentech Holdings Bhd stock overvalued right now?
Pentech Holdings Bhd (XKLS:0457) has a current Operating Margin % of 6.04%. The current Operating Margin % is 6.04%, which is near median its 10-year median of 6.03 and 59.2% above the Software industry median of 3.80. Pentech Holdings Bhd's overall GF Score™ is 16/100 with 1 warning sign 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 Pentech Holdings Bhd (XKLS:0457), the current Operating Margin % is 6.04% 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.
Pentech Holdings Bhd is principally involved in providing enterprise ICT solutions, which include integrating enterprise ICT infrastructure, supplying hardware and software, and providing cloud, managed, and other services such as technical and digital transformation services. The four reportable operating segments are as follows: Integration of enterprise ICT infrastructure, Supply of hardware and software, Provision of cloud and managed services, and Other services. The majority of revenue is derived from the Integration of enterprise ICT infrastructure segment. Geographically, the maximum revenue is generated from Malaysia.
16GF Score
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