Dagang NeXchange BhdXKLS:4456 +1.14%55 Operating Margin % is 24.81% as of Mar. 2026, which is 36% above its 10-year median of 18.19. GuruFocus rates XKLS:4456 with a GF Score™ of 55/100 and a GF Value™ of RM0.29 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 2,818 Software companies, Dagang NeXchange Bhd ranks better than 79.31% on this metric.
Dagang NeXchange Bhd (XKLS:4456) 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.
Dagang NeXchange Bhd Operating Margin % Related Terms
Dagang NeXchange Bhd Operating Margin % Historical Data
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The historical data trend for Dagang NeXchange 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:4456 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Dagang NeXchange 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.
Dagang NeXchange Bhd Operating Margin % vs Software Industry
For the Software industry and Technology sector, Dagang NeXchange Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Dagang NeXchange Bhd's Operating Margin % falls into.
Dagang NeXchange 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.
Dagang NeXchange 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.
Dagang NeXchange Bhd (XKLS:4456) has a Operating Margin % of 24.81% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Dagang NeXchange Bhd and its competitors. This is 36% above median its historical median of 18.19. According to the industry distribution chart, Dagang NeXchange Bhd ranks #583 out of 2818 companies in the Software industry, placing it in the top 20.7%.
Is Dagang NeXchange Bhd's Operating Margin % too high?
Dagang NeXchange Bhd's current Operating Margin % of 24.81% is 36% above median its 10-year median of 18.19. The Software industry median Operating Margin % is 3.87. Dagang NeXchange Bhd's value of 24.81% is 541.9% above this industry median. Based on the distribution chart, Dagang NeXchange Bhd ranks #583 out of 2818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Dagang NeXchange Bhd has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dagang NeXchange Bhd's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Dagang NeXchange Bhd ranks #583 out of 2818 companies for Operating Margin %. This places Dagang NeXchange Bhd in the top 21% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. Dagang NeXchange Bhd's value of 24.81% is 541.9% above this benchmark. While the company's 10-year median is 18.19 vs. the industry median of 3.87, Dagang NeXchange 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 2,818 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. Dagang NeXchange Bhd's current Operating Margin % of 24.81% is 541.9% 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 Dagang NeXchange 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. Dagang NeXchange Bhd's current Operating Margin % is 24.81%, which is 36% above median its own 10-year median of 18.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dagang NeXchange Bhd stock overvalued right now?
Based on GuruFocus' analysis, Dagang NeXchange Bhd (XKLS:4456) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.29, compared to a current price of RM0.45 — trading 53.4% above its estimated fair value. The current Operating Margin % is 24.81%, which is 36% above median its 10-year median of 18.19 and 541.9% above the Software industry median of 3.87. Dagang NeXchange Bhd's overall GF Score™ is 55/100 with 9 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 Dagang NeXchange Bhd (XKLS:4456), the current Operating Margin % is 24.81% 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 Dagang NeXchange Bhd (XKLS:4456) Overvalued in 2026?
Based on GuruFocus' analysis, Dagang NeXchange Bhd stock appears to be overvalued.
The current stock price of RM0.45 is trading 53.4% above its estimated GF Value™ of RM0.29.
GuruFocus considers Dagang NeXchange Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:4456:
Operating Margin %: 24.81% (36% above median its 10-year median of 18.19)
GF Value™: RM0.29 vs. price of RM0.45 (53.4% above fair value)
Industry Position: 541.9% above the Software median (#583 of 2818)
No single metric tells the full story. See the XKLS:4456 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dagang NeXchange Bhd is a Malaysia based company. The business operates in various segments that include Corporate, Information technology, Energy and Semiconductor. Corporate is in provision of corporate services to the entities within the group. Information technology which include Supply, delivery, installation, testing, commissioning and maintenance of IT hardware, development, management and B2G e-commerce. Energy includes providing upstream oil and gas exploration, production, sale of oil and gas related equipment and services, provision of engineering, technical support and energy related business. Key revenue is generated from Semiconductor segment which consists manufacturing of semiconductor wafers ,supplies multinational fables, sales of semiconductor related tools and others.
55GF Score
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