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Tong Herr Resources Bhd (XKLS:5010) Operating Margin % : -2.61% (As of Dec. 2023)


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What is Tong Herr Resources Bhd Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Tong Herr Resources Bhd's Operating Income for the three months ended in Dec. 2023 was RM-3.2 Mil. Tong Herr Resources Bhd's Revenue for the three months ended in Dec. 2023 was RM122.1 Mil. Therefore, Tong Herr Resources Bhd's Operating Margin % for the quarter that ended in Dec. 2023 was -2.61%.

Warning Sign:

Tong Herr Resources Bhd operating margin has been in a 5-year decline. The average rate of decline per year is -17.4%.

The historical rank and industry rank for Tong Herr Resources Bhd's Operating Margin % or its related term are showing as below:

XKLS:5010' s Operating Margin % Range Over the Past 10 Years
Min: 1   Med: 8.87   Max: 11.93
Current: 1


XKLS:5010's Operating Margin % is ranked worse than
75.91% of 2972 companies
in the Industrial Products industry
Industry Median: 7 vs XKLS:5010: 1.00

Tong Herr Resources Bhd's 5-Year Average Operating Margin % Growth Rate was -17.40% per year.

Tong Herr Resources Bhd's Operating Income for the three months ended in Dec. 2023 was RM-3.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was RM6.0 Mil.


Tong Herr Resources Bhd Operating Margin % Historical Data

The historical data trend for Tong Herr Resources 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.

* Premium members only.

Tong Herr Resources Bhd Operating Margin % Chart

Tong Herr Resources Bhd Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.16 6.50 11.93 11.21 1.00

Tong Herr Resources Bhd Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.20 3.41 1.49 0.33 -2.61

Competitive Comparison of Tong Herr Resources Bhd's Operating Margin %

For the Tools & Accessories subindustry, Tong Herr Resources 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.


Tong Herr Resources Bhd's Operating Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Tong Herr Resources Bhd's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Tong Herr Resources Bhd's Operating Margin % falls into.



Tong Herr Resources 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.

Tong Herr Resources Bhd's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=5.994 / 598.033
=1.00 %

Tong Herr Resources Bhd's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=-3.181 / 122.06
=-2.61 %

* 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.


Tong Herr Resources Bhd  (XKLS:5010) 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 Nokia’s 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.


Tong Herr Resources Bhd Operating Margin % Related Terms

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Tong Herr Resources Bhd (XKLS:5010) Business Description

Traded in Other Exchanges
N/A
Address
No. 2515, Tingkat Perusahaan 4A, Perai Free Trade Zone, Perai, PNG, MYS, 13600
Tong Herr Resources Bhd is a Malaysia-based investment holding company. It operates through two segments namely Manufacture and sale of stainless steel fasteners and Manufacture and sale of aluminum products. The company derives maximum revenue from the Manufacture and sale of stainless steel fasteners segment. It is engaged in the production and marketing of stainless steel fasteners such as nuts, bolts, screws, and all other threaded items, aluminum extrusion, and its related products. It operates geographically across countries like Malaysia, Thailand, Germany, the United States of America, and Other countries.

Tong Herr Resources Bhd (XKLS:5010) Headlines

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