VSTECS BhdXKLS:5162 +6.40%66 Operating Margin % is 2.74% as of Mar. 2026, which is 12% above its 10-year median of 2.45. GuruFocus rates XKLS:5162 with a GF Score™ of 66/100 and a GF Value™ of RM1.54 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 2,472 Hardware companies, VSTECS Bhd ranks worse than 52.87% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. VSTECS Bhd's Operating Income for the
three
months ended in Mar. 2026 was RM29 Mil. VSTECS Bhd's Revenue for the
three
months ended in Mar. 2026 was RM1,047 Mil. Therefore, VSTECS Bhd's Operating Margin % for the quarter that ended in Mar. 2026 was 2.74%.
Good Sign:
VSTECS Bhd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for VSTECS Bhd's Operating Margin % or its related term are showing as below:
XKLS:5162'
s Operating Margin % Range Over the Past 10 Years
Min: 1.71 Med: 2.45 Max: 3.49
Current: 3.23
XKLS:5162's Operating Margin % is ranked worse than 52.87% of 2472
companies
in the Hardware industry
Industry Median: 3.8
vs XKLS:5162: 3.23
VSTECS Bhd's 5-Year Average Operating Margin % Growth Rate was 8.10% per year.
VSTECS Bhd's Operating Income for the
three
months ended in Mar. 2026 was RM29 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was RM127 Mil.
VSTECS Bhd (XKLS:5162) 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.
VSTECS Bhd Operating Margin % Related Terms
VSTECS Bhd Operating Margin % Historical Data
* Premium members only.
The historical data trend for VSTECS 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.
XKLS:5162 vs SNX, ARW, AVT: Operating Margin % Comparison
For the Electronics & Computer Distribution subindustry, VSTECS 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.
VSTECS Bhd Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, VSTECS Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where VSTECS 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.
VSTECS 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.
VSTECS Bhd (XKLS:5162) has a Operating Margin % of 2.74% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on VSTECS Bhd and its competitors. This is 12% above median its historical median of 2.45. Over the past decade, VSTECS Bhd's Operating Margin % has ranged from 1.71 to 3.49. According to the industry distribution chart, VSTECS Bhd ranks #1307 out of 2472 companies in the Hardware industry, placing it in the top 52.9%.
Is VSTECS Bhd's Operating Margin % too high?
VSTECS Bhd's current Operating Margin % of 2.74% is 12% above median its 10-year median of 2.45. Over the past 10 years, this metric has ranged from a low of 1.71 to a high of 3.49. The Hardware industry median Operating Margin % is 3.80. VSTECS Bhd's value of 2.74% is 27.9% below this industry median. Based on the distribution chart, VSTECS Bhd ranks #1307 out of 2472 companies in the Hardware industry, which is below the industry midpoint. Overall, VSTECS Bhd has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does VSTECS Bhd's Operating Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, VSTECS Bhd ranks #1307 out of 2472 companies for Operating Margin %. This places VSTECS Bhd in the lower half of its industry. The industry median Operating Margin % is 3.80. VSTECS Bhd's value of 2.74% is 27.9% below this benchmark. Historically, VSTECS Bhd's own Operating Margin % has ranged from 1.71 to 3.49 over the past decade. While the company's 10-year median is 2.45 vs. the industry median of 3.80, VSTECS Bhd 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,472 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. VSTECS Bhd's current Operating Margin % of 2.74% is 27.9% 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 VSTECS Bhd and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. VSTECS Bhd's current Operating Margin % is 2.74%, which is 12% above median its own 10-year median of 2.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is VSTECS Bhd stock overvalued right now?
Based on GuruFocus' analysis, VSTECS Bhd (XKLS:5162) is currently considered Modestly Overvalued. The stock's GF Value™ is RM1.54, compared to a current price of RM1.83 — trading 18.8% above its estimated fair value. The current Operating Margin % is 2.74%, which is 12% above median its 10-year median of 2.45 and 27.9% below the Hardware industry median of 3.80. VSTECS Bhd's overall GF Score™ is 66/100 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 VSTECS Bhd (XKLS:5162), the current Operating Margin % is 2.74% 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 VSTECS Bhd (XKLS:5162) Overvalued in 2026?
Based on GuruFocus' analysis, VSTECS Bhd stock appears to be overvalued.
The current stock price of RM1.83 is trading 18.8% above its estimated GF Value™ of RM1.54.
GuruFocus considers VSTECS Bhd to be Modestly Overvalued.
Key valuation signals for XKLS:5162:
Operating Margin %: 2.74% (12% above median its 10-year median of 2.45)
GF Value™: RM1.54 vs. price of RM1.83 (18.8% above fair value)
Industry Position: 27.9% below the Hardware median (#1307 of 2472)
No single metric tells the full story. See the XKLS:5162 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
VSTECS Bhd is engaged in the provision of e-commerce systems and solutions. The company distributes information and communications technology (ICT) products in Malaysia. These products consist of notebooks, personal computers, smartphones, tablets, wearables, printers, software, network and communication infrastructure, servers, and enterprise software. It operates in three segments. The ICT distribution segment distributes products to resellers, comprising mainly retailers. Its Enterprise systems segment markets products to system integrators and corporate dealers. The ICT services segment is involved in the provision of ICT services. The Enterprise Systems segment generates the maximum revenue.
66GF Score
Get the complete analysis for XKLS:5162
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XKLS:5162 has been successfully added to your 
