ELK-Desa Resources BhdXKLS:5228 -0.98%84 Operating Margin % is 41.84% as of Mar. 2026, which is 26% below its 10-year median of 56.37. GuruFocus rates XKLS:5228 with a GF Score™ of 84/100 and a GF Value™ of RM1.41 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 412 Credit Services companies, ELK-Desa Resources Bhd ranks better than 77.67% on this metric.
ELK-Desa Resources Bhd operating margin has been in a 5-year decline. The average rate of decline per year is -5.1%.
The historical rank and industry rank for ELK-Desa Resources Bhd's Operating Margin % or its related term are showing as below:
XKLS:5228'
s Operating Margin % Range Over the Past 10 Years
Min: 43.45 Med: 56.37 Max: 65.84
Current: 43.45
XKLS:5228's Operating Margin % is ranked better than 77.67% of 412
companies
in the Credit Services industry
Industry Median: 17.325
vs XKLS:5228: 43.45
ELK-Desa Resources Bhd's 5-Year Average Operating Margin % Growth Rate was -5.10% per year.
ELK-Desa Resources Bhd (XKLS:5228) 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.
ELK-Desa Resources Bhd Operating Margin % Related Terms
ELK-Desa Resources Bhd Operating Margin % Historical Data
* Premium members only.
The historical data trend for ELK-Desa Resources 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:5228 vs V, MA, AXP: Operating Margin % Comparison
For the Credit Services subindustry, ELK-Desa Resources 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.
ELK-Desa Resources Bhd Operating Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, ELK-Desa Resources Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ELK-Desa Resources Bhd's Operating Margin % falls into.
ELK-Desa Resources 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.
ELK-Desa Resources Bhd's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
ELK-Desa Resources Bhd (XKLS:5228) has a Operating Margin % of 41.84% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on ELK-Desa Resources Bhd and its competitors. This is 26% below median its historical median of 56.37. Over the past decade, ELK-Desa Resources Bhd's Operating Margin % has ranged from 43.45 to 65.84. According to the industry distribution chart, ELK-Desa Resources Bhd ranks #92 out of 412 companies in the Credit Services industry, placing it in the top 22.3%.
Is ELK-Desa Resources Bhd's Operating Margin % too high?
ELK-Desa Resources Bhd's current Operating Margin % of 41.84% is 26% below median its 10-year median of 56.37. Over the past 10 years, this metric has ranged from a low of 43.45 to a high of 65.84. The Credit Services industry median Operating Margin % is 17.33. ELK-Desa Resources Bhd's value of 41.84% is 141.5% above this industry median. Based on the distribution chart, ELK-Desa Resources Bhd ranks #92 out of 412 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, ELK-Desa Resources Bhd has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ELK-Desa Resources Bhd's Operating Margin % compare to V and MA?
According to the Credit Services industry distribution chart, ELK-Desa Resources Bhd ranks #92 out of 412 companies for Operating Margin %. This places ELK-Desa Resources Bhd in the top 22% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 17.33. ELK-Desa Resources Bhd's value of 41.84% is 141.5% above this benchmark. Historically, ELK-Desa Resources Bhd's own Operating Margin % has ranged from 43.45 to 65.84 over the past decade. While the company's 10-year median is 56.37 vs. the industry median of 17.33, ELK-Desa Resources 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 Credit Services company?
The median Operating Margin % among Credit Services companies is 17.33, based on 412 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. ELK-Desa Resources Bhd's current Operating Margin % of 41.84% is 141.5% 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 ELK-Desa Resources Bhd and its competitors. For the Credit Services industry, the median Operating Margin % is 17.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ELK-Desa Resources Bhd's current Operating Margin % is 41.84%, which is 26% below median its own 10-year median of 56.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ELK-Desa Resources Bhd stock overvalued right now?
Based on GuruFocus' analysis, ELK-Desa Resources Bhd (XKLS:5228) is currently considered Modestly Undervalued. The stock's GF Value™ is RM1.41, compared to a current price of RM1.01 — trading 28.4% below its estimated fair value. The current Operating Margin % is 41.84%, which is 26% below median its 10-year median of 56.37 and 141.5% above the Credit Services industry median of 17.33. ELK-Desa Resources Bhd's overall GF Score™ is 84/100 with 4 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 ELK-Desa Resources Bhd (XKLS:5228), the current Operating Margin % is 41.84% 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 ELK-Desa Resources Bhd (XKLS:5228) Overvalued in 2026?
Based on GuruFocus' analysis, ELK-Desa Resources Bhd stock appears to be undervalued.
The current stock price of RM1.01 is trading 28.4% below its estimated GF Value™ of RM1.41.
GuruFocus considers ELK-Desa Resources Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:5228:
Operating Margin %: 41.84% (26% below median its 10-year median of 56.37)
GF Value™: RM1.41 vs. price of RM1.01 (28.4% below fair value)
Industry Position: 141.5% above the Credit Services median (#92 of 412)
No single metric tells the full story. See the XKLS:5228 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ELK-Desa Resources Bhd is a Malaysian company investment holding company. The company's business segments are Hire-purchase financing and other integrated services and the Trading of furniture. The Hire-purchase financing and other integrated services segment is involved in the business of hire-purchase financing for used motor vehicles as well as selling general insurance policies as an insurance agent and the Trading of furniture segment is involved in the business of trading, export, wholesaling, and manufacturing of furniture. The company earns the majority of its revenue from hire-purchase financing.
84GF Score
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