Leon Fuat Bhd (XKLS:5232) Operating Margin %: 5.27% (As of Mar. 2026) — 28% Below Median


XKLS:5232 Leon Fuat Bhd XKLS:5232
42 GF Score
Price RM0.37
GF Value RM0.46
Valuation Modestly Undervalued
! 10 Warning Signs
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What is Leon Fuat Bhd Operating Margin %?

Leon Fuat Bhd XKLS:5232 +7.35% 42 Operating Margin % is 5.27% as of Mar. 2026, which is 28% below its 10-year median of 7.36. GuruFocus rates XKLS:5232 with a GF Score™ of 42/100 and a GF Value™ of RM0.46 (Modestly Undervalued). The stock has 10 warning signs investors should review. Among 616 Steel companies, Leon Fuat Bhd ranks better than 62.82% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Leon Fuat Bhd's Operating Income for the three months ended in Mar. 2026 was RM11.3 Mil. Leon Fuat Bhd's Revenue for the three months ended in Mar. 2026 was RM214.8 Mil. Therefore, Leon Fuat Bhd's Operating Margin % for the quarter that ended in Mar. 2026 was 5.27%.

Warning Sign:

Leon Fuat Bhd operating margin has been in a 5-year decline. The average rate of decline per year is -20.2%.

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

XKLS:5232' s Operating Margin % Range Over the Past 10 Years
Min: 3.93   Med: 7.36   Max: 21.3
Current: 4.86


XKLS:5232's Operating Margin % is ranked better than
62.82% of 616 companies
in the Steel industry
Industry Median: 3 vs XKLS:5232: 4.86

Leon Fuat Bhd's 5-Year Average Operating Margin % Growth Rate was -20.20% per year.

Leon Fuat Bhd's Operating Income for the three months ended in Mar. 2026 was RM11.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was RM44.2 Mil.


Leon Fuat Bhd  (XKLS:5232) 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.


Leon Fuat Bhd Operating Margin % Related Terms


Leon Fuat Bhd Operating Margin % Historical Data

* Premium members only.

The historical data trend for Leon Fuat 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.

Leon Fuat Bhd Operating Margin % Chart

Leon Fuat Bhd Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.30 5.31 6.52 3.93 4.49

Leon Fuat Bhd Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 3.72 5.71 5.15 3.21 5.27

XKLS:5232 vs NUE, STLD, RS: Operating Margin % Comparison

For the Steel subindustry, Leon Fuat 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.


Leon Fuat Bhd Operating Margin % vs Steel Industry

For the Steel industry and Basic Materials sector, Leon Fuat Bhd's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Leon Fuat Bhd's Operating Margin % falls into.


XKLS:5232
42GF Score
Leon Fuat Bhd XKLS:5232
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Leon Fuat 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.

Leon Fuat Bhd's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=40.755 / 907.287
=4.49 %

Leon Fuat Bhd's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=11.331 / 214.837
=5.27 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 5.27% mean?
Leon Fuat Bhd (XKLS:5232) has a Operating Margin % of 5.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Leon Fuat Bhd and its competitors. This is 28% below median its historical median of 7.36. Over the past decade, Leon Fuat Bhd's Operating Margin % has ranged from 3.93 to 21.30. According to the industry distribution chart, Leon Fuat Bhd ranks #229 out of 616 companies in the Steel industry, placing it in the top 37.2%.
Is Leon Fuat Bhd's Operating Margin % too high?
Leon Fuat Bhd's current Operating Margin % of 5.27% is 28% below median its 10-year median of 7.36. Over the past 10 years, this metric has ranged from a low of 3.93 to a high of 21.30. The Steel industry median Operating Margin % is 3.00. Leon Fuat Bhd's value of 5.27% is 75.7% above this industry median. Based on the distribution chart, Leon Fuat Bhd ranks #229 out of 616 companies in the Steel industry, which is above the industry midpoint. Overall, Leon Fuat Bhd has a GF Score™ of 42/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Leon Fuat Bhd's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Leon Fuat Bhd ranks #229 out of 616 companies for Operating Margin %. This puts Leon Fuat Bhd in the upper half of its industry. The industry median Operating Margin % is 3.00. Leon Fuat Bhd's value of 5.27% is 75.7% above this benchmark. Historically, Leon Fuat Bhd's own Operating Margin % has ranged from 3.93 to 21.30 over the past decade. While the company's 10-year median is 7.36 vs. the industry median of 3.00, Leon Fuat 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 Steel company?
The median Operating Margin % among Steel companies is 3.00, based on 616 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. Leon Fuat Bhd's current Operating Margin % of 5.27% is 75.7% 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 Leon Fuat Bhd and its competitors. For the Steel industry, the median Operating Margin % is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leon Fuat Bhd's current Operating Margin % is 5.27%, which is 28% below median its own 10-year median of 7.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leon Fuat Bhd stock overvalued right now?
Based on GuruFocus' analysis, Leon Fuat Bhd (XKLS:5232) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.46, compared to a current price of RM0.37 — trading 20.7% below its estimated fair value. The current Operating Margin % is 5.27%, which is 28% below median its 10-year median of 7.36 and 75.7% above the Steel industry median of 3.00. Leon Fuat Bhd's overall GF Score™ is 42/100 with 10 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 Leon Fuat Bhd (XKLS:5232), the current Operating Margin % is 5.27% 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 Leon Fuat Bhd (XKLS:5232) Overvalued in 2026?

Based on GuruFocus' analysis, Leon Fuat Bhd stock appears to be undervalued. The current stock price of RM0.37 is trading 20.7% below its estimated GF Value™ of RM0.46. GuruFocus considers Leon Fuat Bhd to be Modestly Undervalued.

Key valuation signals for XKLS:5232:

  • Operating Margin %: 5.27% (28% below median its 10-year median of 7.36)
  • GF Value™: RM0.46 vs. price of RM0.37 (20.7% below fair value)
  • GF Score™: 42/100 with 10 warning signs
  • Industry Position: 75.7% above the Steel median (#229 of 616)

No single metric tells the full story. See the XKLS:5232 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Leon Fuat Bhd Business Description

Address Kawasan Perindustrian, No. 11, Lorong Keluli 1B, Bukit Raja Selatan, Seksyen 7, Shah Alam, SGR, MYS, 40000
Leon Fuat Bhd is engaged in cutting, levelling, shearing, profiling, bending, and finishing, along with the production of expanded metal, perforated metal, and welded steel pipes. The company operates in three reportable segments: Trading of steel products, which includes trading of flat carbon steel products, other flat steel products, long carbon steel products, and other long steel products; Processing and/or manufacturing of steel products, which includes processing of flat carbon steel products, other flat steel products, long carbon steel products, and other long steel products; and Others. The majority of its revenue is generated from the processing and/or manufacturing of steel products. Revenue is derived from Malaysia.
42GF Score

Get the complete analysis for XKLS:5232

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

RM0.37
Price
RM0.46
GF Value