Telekom Malaysia BhdXKLS:4863 +0.14%82 Operating Margin % is 14.86% as of Mar. 2026, which is 5% below its 10-year median of 15.69. GuruFocus rates XKLS:4863 with a GF Score™ of 82/100 and a GF Value™ of RM6.82 (Fairly Valued). The stock has 4 warning signs investors should review. Among 367 Telecommunication Services companies, Telekom Malaysia Bhd ranks better than 67.57% on this metric.
Telekom Malaysia Bhd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Telekom Malaysia Bhd's Operating Margin % or its related term are showing as below:
XKLS:4863'
s Operating Margin % Range Over the Past 10 Years
Min: 9.5 Med: 15.69 Max: 20.13
Current: 16.28
XKLS:4863's Operating Margin % is ranked better than 67.57% of 367
companies
in the Telecommunication Services industry
Industry Median: 9.73
vs XKLS:4863: 16.28
Telekom Malaysia Bhd's 5-Year Average Operating Margin % Growth Rate was 4.50% per year.
Telekom Malaysia Bhd (XKLS:4863) 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.
Telekom Malaysia Bhd Operating Margin % Related Terms
Telekom Malaysia Bhd Operating Margin % Historical Data
* Premium members only.
The historical data trend for Telekom 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:4863 vs TMUS, VZ, T: Operating Margin % Comparison
For the Telecom Services subindustry, Telekom 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.
Telekom Malaysia Bhd Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telekom Malaysia Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Telekom Malaysia Bhd's Operating Margin % falls into.
Telekom 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.
Telekom 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.
Telekom Malaysia Bhd (XKLS:4863) has a Operating Margin % of 14.86% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Telekom Malaysia Bhd and its competitors. This is near median its historical median of 15.69. Over the past decade, Telekom Malaysia Bhd's Operating Margin % has ranged from 9.50 to 20.13. According to the industry distribution chart, Telekom Malaysia Bhd ranks #119 out of 367 companies in the Telecommunication Services industry, placing it in the top 32.4%.
Is Telekom Malaysia Bhd's Operating Margin % too high?
Telekom Malaysia Bhd's current Operating Margin % of 14.86% is near median its 10-year median of 15.69. Over the past 10 years, this metric has ranged from a low of 9.50 to a high of 20.13. The Telecommunication Services industry median Operating Margin % is 9.73. Telekom Malaysia Bhd's value of 14.86% is 52.7% above this industry median. Based on the distribution chart, Telekom Malaysia Bhd ranks #119 out of 367 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telekom Malaysia Bhd has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Telekom Malaysia Bhd's Operating Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telekom Malaysia Bhd ranks #119 out of 367 companies for Operating Margin %. This puts Telekom Malaysia Bhd in the upper half of its industry. The industry median Operating Margin % is 9.73. Telekom Malaysia Bhd's value of 14.86% is 52.7% above this benchmark. Historically, Telekom Malaysia Bhd's own Operating Margin % has ranged from 9.50 to 20.13 over the past decade. While the company's 10-year median is 15.69 vs. the industry median of 9.73, Telekom 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 Telecommunication Services company?
The median Operating Margin % among Telecommunication Services companies is 9.73, based on 367 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. Telekom Malaysia Bhd's current Operating Margin % of 14.86% is 52.7% 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 Telekom Malaysia Bhd and its competitors. For the Telecommunication Services industry, the median Operating Margin % is 9.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telekom Malaysia Bhd's current Operating Margin % is 14.86%, which is near median its own 10-year median of 15.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telekom Malaysia Bhd stock overvalued right now?
Based on GuruFocus' analysis, Telekom Malaysia Bhd (XKLS:4863) is currently considered Fairly Valued. The stock's GF Value™ is RM6.82, compared to a current price of RM7.39 — trading 8.4% above its estimated fair value. The current Operating Margin % is 14.86%, which is near median its 10-year median of 15.69 and 52.7% above the Telecommunication Services industry median of 9.73. Telekom Malaysia Bhd's overall GF Score™ is 82/100 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 Telekom Malaysia Bhd (XKLS:4863), the current Operating Margin % is 14.86% 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 Telekom Malaysia Bhd (XKLS:4863) Overvalued in 2026?
Based on GuruFocus' analysis, Telekom Malaysia Bhd stock appears to be overvalued.
The current stock price of RM7.39 is trading 8.4% above its estimated GF Value™ of RM6.82.
GuruFocus considers Telekom Malaysia Bhd to be Fairly Valued.
Key valuation signals for XKLS:4863:
Operating Margin %: 14.86% (near median its 10-year median of 15.69)
GF Value™: RM6.82 vs. price of RM7.39 (8.4% above fair value)
Industry Position: 52.7% above the Telecommunication Services median (#119 of 367)
No single metric tells the full story. See the XKLS:4863 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telekom Malaysia Bhd is a telecommunications company. It generates revenue from the Internet and multimedia services, Data services, Voice services, Non-telecommunications related services, and Other telecommunications-related services, in which it generates the majority of its revenue from Internet and multimedia services. The company owns telecommunications infrastructure. The Group has identified a single reportable segment of providing fixed-mobile convergence services, which offers integrated broadband, mobile, and data services, digital content, as well as other solutions. It generates the vast majority of its revenue in Malaysia.
82GF Score
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