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Leon Fuat Bhd (XKLS:5232) Operating Margin % : 5.12% (As of Dec. 2023)


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What is Leon Fuat Bhd Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Leon Fuat Bhd's Operating Income for the three months ended in Dec. 2023 was RM12.3 Mil. Leon Fuat Bhd's Revenue for the three months ended in Dec. 2023 was RM240.6 Mil. Therefore, Leon Fuat Bhd's Operating Margin % for the quarter that ended in Dec. 2023 was 5.12%.

Good Sign:

Leon Fuat Bhd operating margin is expanding. Margin expansion is usually a good sign.

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: 4.6   Med: 8.21   Max: 21.3
Current: 6.52


XKLS:5232's Operating Margin % is ranked better than
61.4% of 601 companies
in the Steel industry
Industry Median: 4.35 vs XKLS:5232: 6.52

Leon Fuat Bhd's 5-Year Average Operating Margin % Growth Rate was 0.70% per year.

Leon Fuat Bhd's Operating Income for the three months ended in Dec. 2023 was RM12.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was RM60.5 Mil.

Warning Sign:

Leon Fuat Bhd has recorded a loss in operating income at least once over the past 3 years.


Leon Fuat Bhd Operating Margin % Historical Data

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.

* Premium members only.

Leon Fuat Bhd Operating Margin % Chart

Leon Fuat Bhd Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.60 8.23 21.30 5.31 6.52

Leon Fuat Bhd Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -1.00 7.98 9.53 3.75 5.12

Competitive Comparison of Leon Fuat Bhd's Operating Margin %

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's Operating Margin % Distribution in the 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.



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. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=60.545 / 928.045
=6.52 %

Leon Fuat Bhd's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=12.32 / 240.569
=5.12 %

* 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  (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

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Leon Fuat Bhd (XKLS:5232) Business Description

Traded in Other Exchanges
N/A
Address
Wisma Leon Fuat, No. 11, Lorong Keluli 1B, Seksyen 7, Kawasan Perindustrian Bukit Raja Selatan, Shah Alam, SGR, MYS, 40000
Leon Fuat Bhd is engaged in the provision of management services through its subsidiaries. It operates through three segments: Trading of Steel Products, Processing and/or manufacturing of Steel Products, and Others. It mainly involves the buying and selling of flat and long steel products and also offers value-added services to flat and long steel products in the form of cutting, leveling, shearing, profiling, bending, and finishing as well as the production of expanded metal and Other segment includes steel materials such as tool steel and non-ferrous metal products such as bronze, brass, aluminum, and copper. It operates in two geographical areas; Malaysia and the Republic of Singapore.

Leon Fuat Bhd (XKLS:5232) Headlines

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