Malaysia Steel Works (KL) Bhd ShsXKLS:5098 43 Operating Margin % is 0.26% as of Mar. 2026, which is 87% below its 10-year median of 2.04. GuruFocus rates XKLS:5098 with a GF Score™ of 43/100 and a GF Value™ of RM0.39 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 615 Steel companies, Malaysia Steel Works (KL) Bhd Shs ranks worse than 64.07% on this metric.
Malaysia Steel Works (KL) Bhd Shs (XKLS:5098) 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.
Malaysia Steel Works (KL) Bhd Shs Operating Margin % Related Terms
Malaysia Steel Works (KL) Bhd Shs 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.
Malaysia Steel Works (KL) Bhd Shs Operating Margin % Chart
XKLS:5098 vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Malaysia Steel Works (KL) Bhd Shs'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.
Malaysia Steel Works (KL) Bhd Shs Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Malaysia Steel Works (KL) Bhd Shs's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Malaysia Steel Works (KL) Bhd Shs's Operating Margin % falls into.
Malaysia Steel Works (KL) Bhd Shs 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.
* 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.
Malaysia Steel Works (KL) Bhd Shs (XKLS:5098) has a Operating Margin % of 0.26% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Malaysia Steel Works (KL) Bhd Shs and its competitors. This is 87% below median its historical median of 2.04. Over the past decade, Malaysia Steel Works (KL) Bhd Shs' Operating Margin % has ranged from 0.13 to 6.27. According to the industry distribution chart, Malaysia Steel Works (KL) Bhd Shs ranks #394 out of 615 companies in the Steel industry, placing it in the top 64.1%.
Is Malaysia Steel Works (KL) Bhd Shs' Operating Margin % too high?
Malaysia Steel Works (KL) Bhd Shs' current Operating Margin % of 0.26% is 87% below median its 10-year median of 2.04. Over the past 10 years, this metric has ranged from a low of 0.13 to a high of 6.27. The Steel industry median Operating Margin % is 2.99. Malaysia Steel Works (KL) Bhd Shs' value of 0.26% is 91.3% below this industry median. Based on the distribution chart, Malaysia Steel Works (KL) Bhd Shs ranks #394 out of 615 companies in the Steel industry, which is below the industry midpoint. Overall, Malaysia Steel Works (KL) Bhd Shs has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Malaysia Steel Works (KL) Bhd Shs' Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Malaysia Steel Works (KL) Bhd Shs ranks #394 out of 615 companies for Operating Margin %. This places Malaysia Steel Works (KL) Bhd Shs in the lower half of its industry. The industry median Operating Margin % is 2.99. Malaysia Steel Works (KL) Bhd Shs' value of 0.26% is 91.3% below this benchmark. Historically, Malaysia Steel Works (KL) Bhd Shs' own Operating Margin % has ranged from 0.13 to 6.27 over the past decade. While the company's 10-year median is 2.04 vs. the industry median of 2.99, Malaysia Steel Works (KL) Bhd Shs has consistently been below 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 Steel company?
The median Operating Margin % among Steel companies is 2.99, based on 615 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. Malaysia Steel Works (KL) Bhd Shs's current Operating Margin % of 0.26% is 91.3% below 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 Malaysia Steel Works (KL) Bhd Shs and its competitors. For the Steel industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Malaysia Steel Works (KL) Bhd Shs's current Operating Margin % is 0.26%, which is 87% below median its own 10-year median of 2.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Malaysia Steel Works (KL) Bhd Shs stock overvalued right now?
Based on GuruFocus' analysis, Malaysia Steel Works (KL) Bhd Shs (XKLS:5098) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.39, compared to a current price of RM0.23 — trading 41% below its estimated fair value. The current Operating Margin % is 0.26%, which is 87% below median its 10-year median of 2.04 and 91.3% below the Steel industry median of 2.99. Malaysia Steel Works (KL) Bhd Shs' overall GF Score™ is 43/100 with 7 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 Malaysia Steel Works (KL) Bhd Shs (XKLS:5098), the current Operating Margin % is 0.26% 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 Malaysia Steel Works (KL) Bhd Shs (XKLS:5098) Overvalued in 2026?
Based on GuruFocus' analysis, Malaysia Steel Works (KL) Bhd Shs stock appears to be undervalued.
The current stock price of RM0.23 is trading 41% below its estimated GF Value™ of RM0.39.
GuruFocus considers Malaysia Steel Works (KL) Bhd Shs to be Possible Value Trap.
Key valuation signals for XKLS:5098:
Operating Margin %: 0.26% (87% below median its 10-year median of 2.04)
GF Value™: RM0.39 vs. price of RM0.23 (41% below fair value)
Industry Position: 91.3% below the Steel median (#394 of 615)
No single metric tells the full story. See the XKLS:5098 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Malaysia Steel Works (KL) Bhd Shs Business Description
Malaysia Steel Works (KL) Bhd Shs engages in the manufacturing and marketing of high tensile steel bars, mild steel bars, and prime steel billets. These steel products are used in construction and infrastructure works. The company is organized in one business segment which is the Manufacturing of steel bars and billets. Geographically, the group has a business presence in Malaysia and Outside Malaysia, of which prime revenue is derived from Malaysia.
43GF Score
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