Globaltec Formation BhdXKLS:5220 +1.18%40 Operating Margin % is 1.44% as of Mar. 2026, which is 69% below its 10-year median of 4.63. GuruFocus rates XKLS:5220 with a GF Score™ of 40/100 and a GF Value™ of RM0.40 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,325 Vehicles & Parts companies, Globaltec Formation Bhd ranks better than 62.72% on this metric.
Globaltec Formation Bhd operating margin has been in a 5-year decline. The average rate of decline per year is -7.3%.
The historical rank and industry rank for Globaltec Formation Bhd's Operating Margin % or its related term are showing as below:
XKLS:5220'
s Operating Margin % Range Over the Past 10 Years
Min: -18.6 Med: 4.63 Max: 21.44
Current: 6.83
XKLS:5220's Operating Margin % is ranked better than 62.72% of 1325
companies
in the Vehicles & Parts industry
Industry Median: 4.86
vs XKLS:5220: 6.83
Globaltec Formation Bhd's 5-Year Average Operating Margin % Growth Rate was -7.30% per year.
Globaltec Formation Bhd (XKLS:5220) 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.
Globaltec Formation Bhd Operating Margin % Related Terms
Globaltec Formation Bhd Operating Margin % Historical Data
* Premium members only.
The historical data trend for Globaltec Formation 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:5220 vs ORLY, AZO: Operating Margin % Comparison
For the Auto Parts subindustry, Globaltec Formation 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.
Globaltec Formation Bhd Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Globaltec Formation Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Globaltec Formation Bhd's Operating Margin % falls into.
Globaltec Formation 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.
Globaltec Formation Bhd's Operating Margin % for the fiscal year that ended in Jun. 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.
Globaltec Formation Bhd (XKLS:5220) has a Operating Margin % of 1.44% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Globaltec Formation Bhd and its competitors. This is 69% below median its historical median of 4.63. According to the industry distribution chart, Globaltec Formation Bhd ranks #494 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 37.3%.
Is Globaltec Formation Bhd's Operating Margin % too high?
Globaltec Formation Bhd's current Operating Margin % of 1.44% is 69% below median its 10-year median of 4.63. The Vehicles & Parts industry median Operating Margin % is 4.86. Globaltec Formation Bhd's value of 1.44% is 70.4% below this industry median. Based on the distribution chart, Globaltec Formation Bhd ranks #494 out of 1325 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Globaltec Formation Bhd has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Globaltec Formation Bhd's Operating Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Globaltec Formation Bhd ranks #494 out of 1325 companies for Operating Margin %. This puts Globaltec Formation Bhd in the upper half of its industry. The industry median Operating Margin % is 4.86. Globaltec Formation Bhd's value of 1.44% is 70.4% below this benchmark. While the company's 10-year median is 4.63 vs. the industry median of 4.86, Globaltec Formation 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 Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.86, based on 1,325 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. Globaltec Formation Bhd's current Operating Margin % of 1.44% is 70.4% 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 Globaltec Formation Bhd and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Globaltec Formation Bhd's current Operating Margin % is 1.44%, which is 69% below median its own 10-year median of 4.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Globaltec Formation Bhd stock overvalued right now?
Based on GuruFocus' analysis, Globaltec Formation Bhd (XKLS:5220) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.40, compared to a current price of RM0.86 — trading 115% above its estimated fair value. The current Operating Margin % is 1.44%, which is 69% below median its 10-year median of 4.63 and 70.4% below the Vehicles & Parts industry median of 4.86. Globaltec Formation Bhd's overall GF Score™ is 40/100 with 5 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 Globaltec Formation Bhd (XKLS:5220), the current Operating Margin % is 1.44% 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 Globaltec Formation Bhd (XKLS:5220) Overvalued in 2026?
Based on GuruFocus' analysis, Globaltec Formation Bhd stock appears to be overvalued.
The current stock price of RM0.86 is trading 115% above its estimated GF Value™ of RM0.40.
GuruFocus considers Globaltec Formation Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:5220:
Operating Margin %: 1.44% (69% below median its 10-year median of 4.63)
GF Value™: RM0.40 vs. price of RM0.86 (115% above fair value)
Industry Position: 70.4% below the Vehicles & Parts median (#494 of 1325)
No single metric tells the full story. See the XKLS:5220 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Globaltec Formation Bhd is an auto parts manufacturer. Its business is divided into four reportable segments, namely Integrated Manufacturing Services (IMS), Resources, Energy, and Investment Holding. The IMS segment deals with designing and manufacturing automotive components, and it also consists of the precision machining, stamping, and tooling arm and the semiconductor division. The Resources segment includes the oil palm plantation and coal mining divisions. The Energy segment includes oil and gas exploration, production, and services. Lastly, the Investment Holding segment manages the company's investments in subsidiaries. The company generates the majority of its revenue from the IMS segment. Geographically, it derives key revenue from Malaysia.
40GF Score
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