Eastern & Oriental BhdXKLS:3417 -1.39%85 Operating Margin % is 23.01% as of Mar. 2026, which is 39% above its 10-year median of 16.51. GuruFocus rates XKLS:3417 with a GF Score™ of 85/100 and a GF Value™ of RM1.12 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 1,745 Real Estate companies, Eastern & Oriental Bhd ranks better than 70.72% on this metric.
Eastern & Oriental Bhd (XKLS:3417) 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.
Eastern & Oriental Bhd Operating Margin % Related Terms
Eastern & Oriental Bhd Operating Margin % Historical Data
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The historical data trend for Eastern & Oriental 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.
Eastern & Oriental Bhd Operating Margin % Competitor Comparison
For the Real Estate - Development subindustry, Eastern & Oriental 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.
Eastern & Oriental Bhd Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Eastern & Oriental Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Eastern & Oriental Bhd's Operating Margin % falls into.
Eastern & Oriental 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.
Eastern & Oriental 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.
Eastern & Oriental Bhd (XKLS:3417) has a Operating Margin % of 23.01% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Eastern & Oriental Bhd and its competitors. This is 39% above median its historical median of 16.51. According to the industry distribution chart, Eastern & Oriental Bhd ranks #511 out of 1745 companies in the Real Estate industry, placing it in the top 29.3%.
Is Eastern & Oriental Bhd's Operating Margin % too high?
Eastern & Oriental Bhd's current Operating Margin % of 23.01% is 39% above median its 10-year median of 16.51. The Real Estate industry median Operating Margin % is 13.21. Eastern & Oriental Bhd's value of 23.01% is 74.2% above this industry median. Based on the distribution chart, Eastern & Oriental Bhd ranks #511 out of 1745 companies in the Real Estate industry, which is above the industry midpoint. Overall, Eastern & Oriental Bhd has a GF Score™ of 85/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Eastern & Oriental Bhd's Operating Margin % compare to competitors?
According to the Real Estate industry distribution chart, Eastern & Oriental Bhd ranks #511 out of 1745 companies for Operating Margin %. This puts Eastern & Oriental Bhd in the upper half of its industry. The industry median Operating Margin % is 13.21. Eastern & Oriental Bhd's value of 23.01% is 74.2% above this benchmark. While the company's 10-year median is 16.51 vs. the industry median of 13.21, Eastern & Oriental 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.21, based on 1,745 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. Eastern & Oriental Bhd's current Operating Margin % of 23.01% is 74.2% 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 Eastern & Oriental Bhd and its competitors. For the Real Estate industry, the median Operating Margin % is 13.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eastern & Oriental Bhd's current Operating Margin % is 23.01%, which is 39% above median its own 10-year median of 16.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eastern & Oriental Bhd stock overvalued right now?
Based on GuruFocus' analysis, Eastern & Oriental Bhd (XKLS:3417) is currently considered Possible Value Trap. The stock's GF Value™ is RM1.12, compared to a current price of RM0.71 — trading 36.6% below its estimated fair value. The current Operating Margin % is 23.01%, which is 39% above median its 10-year median of 16.51 and 74.2% above the Real Estate industry median of 13.21. Eastern & Oriental Bhd's overall GF Score™ is 85/100 with 3 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 Eastern & Oriental Bhd (XKLS:3417), the current Operating Margin % is 23.01% 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 Eastern & Oriental Bhd (XKLS:3417) Overvalued in 2026?
Based on GuruFocus' analysis, Eastern & Oriental Bhd stock appears to be undervalued.
The current stock price of RM0.71 is trading 36.6% below its estimated GF Value™ of RM1.12.
GuruFocus considers Eastern & Oriental Bhd to be Possible Value Trap.
Key valuation signals for XKLS:3417:
Operating Margin %: 23.01% (39% above median its 10-year median of 16.51)
GF Value™: RM1.12 vs. price of RM0.71 (36.6% below fair value)
Industry Position: 74.2% above the Real Estate median (#511 of 1745)
No single metric tells the full story. See the XKLS:3417 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eastern & Oriental Bhd is a property developer based in Malaysia. Its property development portfolio is spread across Kuala Lumpur, Penang, and Johor's Iskandar Malaysia, and overseas in central London. The Group's hospitality division provides a complementary lifestyle component that supports the core property development business, including the heritage Eastern & Oriental Hotel and Lone Pine Hotel in Penang, as well as the contemporary E&O Residences Kuala Lumpur in the capital's vibrant city center. It has three segments Properties, Hospitality and Investments and others. The company generates the majority of its revenue from the Properties segment. Geographically the company derives revenue from Malaysia and the United Kingdom.
85GF Score
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