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Luxchem BhdXKLS:5143 +1.23%52 Operating Margin % is 12.08% as of Mar. 2026, which is 33% above its 10-year median of 9.11. GuruFocus rates XKLS:5143 with a GF Score™ of 52/100 and a GF Value™ of RM0.46 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,577 Chemicals companies, Luxchem Bhd ranks better than 68.8% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Luxchem Bhd's Operating Income for the
three
months ended in Mar. 2026 was RM21.4 Mil. Luxchem Bhd's Revenue for the
three
months ended in Mar. 2026 was RM177.2 Mil. Therefore, Luxchem Bhd's Operating Margin % for the quarter that ended in Mar. 2026 was 12.08%.
Good Sign:
Luxchem Corp Bhd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Luxchem Bhd's Operating Margin % or its related term are showing as below:
XKLS:5143'
s Operating Margin % Range Over the Past 10 Years
Min: 6.66 Med: 9.11 Max: 10.63
Current: 10.35
XKLS:5143's Operating Margin % is ranked better than 68.8% of 1577
companies
in the Chemicals industry
Industry Median: 6.03
vs XKLS:5143: 10.35
Luxchem Bhd's 5-Year Average Operating Margin % Growth Rate was 0.40% per year.
Luxchem Bhd's Operating Income for the
three
months ended in Mar. 2026 was RM21.4 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was RM74.3 Mil.
Luxchem Bhd (XKLS:5143) 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.
Luxchem Bhd Operating Margin % Related Terms
Luxchem Bhd Operating Margin % Historical Data
* Premium members only.
The historical data trend for Luxchem 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.
For the Chemicals subindustry, Luxchem 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.
Luxchem Bhd Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Luxchem Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Luxchem Bhd's Operating Margin % falls into.
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.
Luxchem 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.
Luxchem Bhd (XKLS:5143) has a Operating Margin % of 12.08% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Luxchem Bhd and its competitors. This is 33% above median its historical median of 9.11. Over the past decade, Luxchem Bhd's Operating Margin % has ranged from 6.66 to 10.63. According to the industry distribution chart, Luxchem Bhd ranks #492 out of 1577 companies in the Chemicals industry, placing it in the top 31.2%.
Is Luxchem Bhd's Operating Margin % too high?
Luxchem Bhd's current Operating Margin % of 12.08% is 33% above median its 10-year median of 9.11. Over the past 10 years, this metric has ranged from a low of 6.66 to a high of 10.63. The Chemicals industry median Operating Margin % is 6.03. Luxchem Bhd's value of 12.08% is 100.3% above this industry median. Based on the distribution chart, Luxchem Bhd ranks #492 out of 1577 companies in the Chemicals industry, which is above the industry midpoint. Overall, Luxchem Bhd has a GF Score™ of 52/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Luxchem Bhd's Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Luxchem Bhd ranks #492 out of 1577 companies for Operating Margin %. This puts Luxchem Bhd in the upper half of its industry. The industry median Operating Margin % is 6.03. Luxchem Bhd's value of 12.08% is 100.3% above this benchmark. Historically, Luxchem Bhd's own Operating Margin % has ranged from 6.66 to 10.63 over the past decade. While the company's 10-year median is 9.11 vs. the industry median of 6.03, Luxchem 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.03, based on 1,577 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. Luxchem Bhd's current Operating Margin % of 12.08% is 100.3% 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 Luxchem Bhd and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luxchem Bhd's current Operating Margin % is 12.08%, which is 33% above median its own 10-year median of 9.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luxchem Bhd stock overvalued right now?
Based on GuruFocus' analysis, Luxchem Bhd (XKLS:5143) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.46, compared to a current price of RM0.41 — trading 10.9% below its estimated fair value. The current Operating Margin % is 12.08%, which is 33% above median its 10-year median of 9.11 and 100.3% above the Chemicals industry median of 6.03. Luxchem Bhd's overall GF Score™ is 52/100 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 Luxchem Bhd (XKLS:5143), the current Operating Margin % is 12.08% 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 Luxchem Bhd (XKLS:5143) Overvalued in 2026?
Based on GuruFocus' analysis, Luxchem Bhd stock appears to be undervalued.
The current stock price of RM0.41 is trading 10.9% below its estimated GF Value™ of RM0.46.
GuruFocus considers Luxchem Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:5143:
Operating Margin %: 12.08% (33% above median its 10-year median of 9.11)
GF Value™: RM0.46 vs. price of RM0.41 (10.9% below fair value)
Industry Position: 100.3% above the Chemicals median (#492 of 1577)
No single metric tells the full story. See the XKLS:5143 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luxchem Corp Bhd is a Malaysia-based company engaged in the import, export, and distribution of petrochemical and other related products globally. It operates through two reportable segments, namely Trading and Manufacturing. Maximum revenue is generated from the Trading segment, which is engaged in the import, export, and distribution of petrochemical and other related products, and in the trading of hardware and other materials required for interior decoration, construction, and development. The Manufacturing segment is involved in the manufacturing and trading of unsaturated polyester resin, latex chemical dispersions, latex processing chemicals, former cleaning, powder-free coagulant, and related products. Geographically, the Group derives maximum revenue from Malaysia.
52GF Score
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