Nestle Malaysia BhdXKLS:4707 +0.23%88 Operating Margin % is 15.13% as of Mar. 2026, which is 9% above its 10-year median of 13.83. GuruFocus rates XKLS:4707 with a GF Score™ of 88/100 and a GF Value™ of RM116.82 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,951 Consumer Packaged Goods companies, Nestle Malaysia Bhd ranks better than 76.63% on this metric.
Nestle Malaysia Bhd operating margin has been in a 5-year decline. The average rate of decline per year is -6.1%.
The historical rank and industry rank for Nestle Malaysia Bhd's Operating Margin % or its related term are showing as below:
XKLS:4707'
s Operating Margin % Range Over the Past 10 Years
Min: 9.78 Med: 13.83 Max: 16.57
Current: 11.67
XKLS:4707's Operating Margin % is ranked better than 76.63% of 1951
companies
in the Consumer Packaged Goods industry
Industry Median: 5.26
vs XKLS:4707: 11.67
Nestle Malaysia Bhd's 5-Year Average Operating Margin % Growth Rate was -6.10% per year.
Nestle Malaysia Bhd (XKLS:4707) 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.
Nestle Malaysia Bhd Operating Margin % Related Terms
Nestle Malaysia Bhd Operating Margin % Historical Data
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The historical data trend for Nestle Malaysia 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:4707 vs KHC, GIS: Operating Margin % Comparison
For the Packaged Foods subindustry, Nestle Malaysia 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.
Nestle Malaysia Bhd Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle Malaysia Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nestle Malaysia Bhd's Operating Margin % falls into.
Nestle Malaysia 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.
Nestle Malaysia 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.
Nestle Malaysia Bhd (XKLS:4707) has a Operating Margin % of 15.13% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nestle Malaysia Bhd and its competitors. This is near median its historical median of 13.83. Over the past decade, Nestle Malaysia Bhd's Operating Margin % has ranged from 9.78 to 16.57. According to the industry distribution chart, Nestle Malaysia Bhd ranks #456 out of 1951 companies in the Consumer Packaged Goods industry, placing it in the top 23.4%.
Is Nestle Malaysia Bhd's Operating Margin % too high?
Nestle Malaysia Bhd's current Operating Margin % of 15.13% is near median its 10-year median of 13.83. Over the past 10 years, this metric has ranged from a low of 9.78 to a high of 16.57. The Consumer Packaged Goods industry median Operating Margin % is 5.26. Nestle Malaysia Bhd's value of 15.13% is 187.6% above this industry median. Based on the distribution chart, Nestle Malaysia Bhd ranks #456 out of 1951 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Nestle Malaysia Bhd has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nestle Malaysia Bhd's Operating Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Nestle Malaysia Bhd ranks #456 out of 1951 companies for Operating Margin %. This places Nestle Malaysia Bhd in the top 23% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.26. Nestle Malaysia Bhd's value of 15.13% is 187.6% above this benchmark. Historically, Nestle Malaysia Bhd's own Operating Margin % has ranged from 9.78 to 16.57 over the past decade. While the company's 10-year median is 13.83 vs. the industry median of 5.26, Nestle Malaysia 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 Consumer Packaged Goods company?
The median Operating Margin % among Consumer Packaged Goods companies is 5.26, based on 1,951 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. Nestle Malaysia Bhd's current Operating Margin % of 15.13% is 187.6% 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 Nestle Malaysia Bhd and its competitors. For the Consumer Packaged Goods industry, the median Operating Margin % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nestle Malaysia Bhd's current Operating Margin % is 15.13%, which is near median its own 10-year median of 13.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nestle Malaysia Bhd stock overvalued right now?
Based on GuruFocus' analysis, Nestle Malaysia Bhd (XKLS:4707) is currently considered Modestly Undervalued. The stock's GF Value™ is RM116.82, compared to a current price of RM95.84 — trading 18% below its estimated fair value. The current Operating Margin % is 15.13%, which is near median its 10-year median of 13.83 and 187.6% above the Consumer Packaged Goods industry median of 5.26. Nestle Malaysia Bhd's overall GF Score™ is 88/100 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 Nestle Malaysia Bhd (XKLS:4707), the current Operating Margin % is 15.13% 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 Nestle Malaysia Bhd (XKLS:4707) Overvalued in 2026?
Based on GuruFocus' analysis, Nestle Malaysia Bhd stock appears to be undervalued.
The current stock price of RM95.84 is trading 18% below its estimated GF Value™ of RM116.82.
GuruFocus considers Nestle Malaysia Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:4707:
Operating Margin %: 15.13% (near median its 10-year median of 13.83)
GF Value™: RM116.82 vs. price of RM95.84 (18% below fair value)
Industry Position: 187.6% above the Consumer Packaged Goods median (#456 of 1951)
No single metric tells the full story. See the XKLS:4707 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nestle Malaysia Bhd is a Malaysian investment holding company owned by Nestle. The business activities of the group are functioned through Food and beverages and Others segments which include Nutrition, Nestle Professional, Nestle Health Science and NESPRESSO. The Food and Beverages segment derives maximum revenue. The products offered by the group are related to dairy, beverages, food, Nestle Professional, Nestle Ice Cream, confectionery, chilled dairy, infant nutrition, and health science. The main geography is the domestic market, representing approximately maximum of total sales. The known brands are Nescafe, Maggi, Nespray, Kit Kat, and Milo.
88GF Score
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