Hume Cement Industries BhdXKLS:5000 -0.34%86 Operating Margin % is 111.42% as of Mar. 2026, which is 2072% above its 10-year median of 5.13. GuruFocus rates XKLS:5000 with a GF Score™ of 86/100 and a GF Value™ of RM2.70 (Fairly Valued). The stock has 2 warning signs investors should review. Among 402 Building Materials companies, Hume Cement Industries Bhd ranks better than 99.25% on this metric.
The historical rank and industry rank for Hume Cement Industries Bhd's Operating Margin % or its related term are showing as below:
XKLS:5000'
s Operating Margin % Range Over the Past 10 Years
Min: -12.46 Med: 5.13 Max: 47.32
Current: 47.32
XKLS:5000's Operating Margin % is ranked better than 99.25% of 402
companies
in the Building Materials industry
Industry Median: 7.63
vs XKLS:5000: 47.32
Hume Cement Industries Bhd (XKLS:5000) 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.
Hume Cement Industries Bhd Operating Margin % Related Terms
Hume Cement Industries Bhd Operating Margin % Historical Data
* 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.
Hume Cement Industries Bhd Operating Margin % Chart
XKLS:5000 vs CRH, VMC, MLM: Operating Margin % Comparison
For the Building Materials subindustry, Hume Cement Industries 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.
Hume Cement Industries Bhd Operating Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Hume Cement Industries Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hume Cement Industries Bhd's Operating Margin % falls into.
Hume Cement Industries 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.
Hume Cement Industries Bhd's Operating Margin % for the fiscal year that ended in Jun. 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.
Hume Cement Industries Bhd (XKLS:5000) has a Operating Margin % of 111.42% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hume Cement Industries Bhd and its competitors. This is 2072% above median its historical median of 5.13. According to the industry distribution chart, Hume Cement Industries Bhd ranks #3 out of 402 companies in the Building Materials industry, placing it in the top 0.7%.
Is Hume Cement Industries Bhd's Operating Margin % too high?
Hume Cement Industries Bhd's current Operating Margin % of 111.42% is 2072% above median its 10-year median of 5.13. The Building Materials industry median Operating Margin % is 7.63. Hume Cement Industries Bhd's value of 111.42% is 1360.3% above this industry median. Based on the distribution chart, Hume Cement Industries Bhd ranks #3 out of 402 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Hume Cement Industries Bhd has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hume Cement Industries Bhd's Operating Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Hume Cement Industries Bhd ranks #3 out of 402 companies for Operating Margin %. This places Hume Cement Industries Bhd in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.63. Hume Cement Industries Bhd's value of 111.42% is 1360.3% above this benchmark. While the company's 10-year median is 5.13 vs. the industry median of 7.63, Hume Cement Industries 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 Building Materials company?
The median Operating Margin % among Building Materials companies is 7.63, based on 402 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. Hume Cement Industries Bhd's current Operating Margin % of 111.42% is 1360.3% 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 Hume Cement Industries Bhd and its competitors. For the Building Materials industry, the median Operating Margin % is 7.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hume Cement Industries Bhd's current Operating Margin % is 111.42%, which is 2072% above median its own 10-year median of 5.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hume Cement Industries Bhd stock overvalued right now?
Based on GuruFocus' analysis, Hume Cement Industries Bhd (XKLS:5000) is currently considered Fairly Valued. The stock's GF Value™ is RM2.70, compared to a current price of RM2.92 — trading 8.1% above its estimated fair value. The current Operating Margin % is 111.42%, which is 2072% above median its 10-year median of 5.13 and 1360.3% above the Building Materials industry median of 7.63. Hume Cement Industries Bhd's overall GF Score™ is 86/100 with 2 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 Hume Cement Industries Bhd (XKLS:5000), the current Operating Margin % is 111.42% 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 Hume Cement Industries Bhd (XKLS:5000) Overvalued in 2026?
Based on GuruFocus' analysis, Hume Cement Industries Bhd stock appears to be overvalued.
The current stock price of RM2.92 is trading 8.1% above its estimated GF Value™ of RM2.70.
GuruFocus considers Hume Cement Industries Bhd to be Fairly Valued.
Key valuation signals for XKLS:5000:
Operating Margin %: 111.42% (2072% above median its 10-year median of 5.13)
GF Value™: RM2.70 vs. price of RM2.92 (8.1% above fair value)
Industry Position: 1360.3% above the Building Materials median (#3 of 402)
No single metric tells the full story. See the XKLS:5000 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hume Cement Industries Bhd through its subsidiaries is engaged in the manufacturing and sale of cement and cement related products, and manufacturing, marketing and sale of concrete and concrete-related products. Geographically, Malaysia accounts for a larger share of the revenue. The company also provides precast concrete solutions to the construction industry and mega structure development projects.
86GF Score
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