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Melati Ehsan Holdings Bhd (XKLS:5129) Operating Margin % : 6.47% (As of Nov. 2024)


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What is Melati Ehsan Holdings Bhd Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Melati Ehsan Holdings Bhd's Operating Income for the three months ended in Nov. 2024 was RM0.76 Mil. Melati Ehsan Holdings Bhd's Revenue for the three months ended in Nov. 2024 was RM11.73 Mil. Therefore, Melati Ehsan Holdings Bhd's Operating Margin % for the quarter that ended in Nov. 2024 was 6.47%.

Warning Sign:

Melati Ehsan Holdings Bhd operating margin has been in a 5-year decline. The average rate of decline per year is -4.3%.

The historical rank and industry rank for Melati Ehsan Holdings Bhd's Operating Margin % or its related term are showing as below:

XKLS:5129' s Operating Margin % Range Over the Past 10 Years
Min: -18.55   Med: 5.18   Max: 35
Current: -18.55


XKLS:5129's Operating Margin % is ranked worse than
91.9% of 1729 companies
in the Construction industry
Industry Median: 5.43 vs XKLS:5129: -18.55

Melati Ehsan Holdings Bhd's 5-Year Average Operating Margin % Growth Rate was -4.30% per year.

Melati Ehsan Holdings Bhd's Operating Income for the three months ended in Nov. 2024 was RM0.76 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Nov. 2024 was RM-6.56 Mil.


Melati Ehsan Holdings Bhd Operating Margin % Historical Data

The historical data trend for Melati Ehsan Holdings 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.

Melati Ehsan Holdings Bhd Operating Margin % Chart

Melati Ehsan Holdings Bhd Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.04 5.19 31.32 13.76 0.75

Melati Ehsan Holdings Bhd Quarterly Data
Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24
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 2.75 -3.36 8.05 -109.71 6.47

Competitive Comparison of Melati Ehsan Holdings Bhd's Operating Margin %

For the Engineering & Construction subindustry, Melati Ehsan Holdings 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.


Melati Ehsan Holdings Bhd's Operating Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Melati Ehsan Holdings Bhd's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Melati Ehsan Holdings Bhd's Operating Margin % falls into.


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Melati Ehsan Holdings 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.

Melati Ehsan Holdings Bhd's Operating Margin % for the fiscal year that ended in Aug. 2024 is calculated as

Operating Margin %=Operating Income (A: Aug. 2024 ) / Revenue (A: Aug. 2024 )
=0.273 / 36.264
=0.75 %

Melati Ehsan Holdings Bhd's Operating Margin % for the quarter that ended in Nov. 2024 is calculated as

Operating Margin %=Operating Income (Q: Nov. 2024 ) / Revenue (Q: Nov. 2024 )
=0.759 / 11.734
=6.47 %

* 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.


Melati Ehsan Holdings Bhd  (XKLS:5129) 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.


Melati Ehsan Holdings Bhd Operating Margin % Related Terms

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Melati Ehsan Holdings Bhd Business Description

Traded in Other Exchanges
N/A
Address
No. 5, Jalan Titiwangsa, Kuala Lumpur, SGR, MYS, 53200
Melati Ehsan Holdings Bhd is a Malaysia-based investment holding. The principal activity of the company is turnkey contractor, property development, trading of construction materials, rental of machineries, money lending business. The reporting segments of the group are the Construction segment which includes turnkey construction activities, the Trading segment which includes the trading of construction materials and rental of machinery, and Property development which relates to development of residential and commercial properties. The company operates principally in Malaysia and generates the majority of its revenue from the Construction segment. The company's ongoing projects are Meridian at Kluang, TNB Mixed development at Bangsar, Bayu Residency at Sri Temenggung and others.

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