KLCC Property & Holdings Bhd (XKLS:5235SS) 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.
KLCC Property & Holdings Bhd Operating Margin % Related Terms
KLCC Property & Holdings Bhd Operating Margin % Historical Data
* 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.
KLCC Property & Holdings Bhd Operating Margin % Chart
XKLS:5235SS vs VICI, WPC, BNL: Operating Margin % Comparison
For the REIT - Diversified subindustry, KLCC Property & Holdings 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.
KLCC Property & Holdings Bhd Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, KLCC Property & Holdings Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where KLCC Property & Holdings Bhd's Operating Margin % falls into.
KLCC Property & Holdings 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.
* 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.
KLCC Property & Holdings Bhd (XKLS:5235SS) has a Operating Margin % of 64.25% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on KLCC Property & Holdings Bhd and its competitors. This is near median its historical median of 64.36. Over the past decade, KLCC Property & Holdings Bhd's Operating Margin % has ranged from 61.69 to 71.90. According to the industry distribution chart, KLCC Property & Holdings Bhd ranks #259 out of 750 companies in the REITs industry, placing it in the top 34.5%.
Is KLCC Property & Holdings Bhd's Operating Margin % too high?
KLCC Property & Holdings Bhd's current Operating Margin % of 64.25% is near median its 10-year median of 64.36. Over the past 10 years, this metric has ranged from a low of 61.69 to a high of 71.90. The REITs industry median Operating Margin % is 52.67. KLCC Property & Holdings Bhd's value of 64.25% is 22% above this industry median. Based on the distribution chart, KLCC Property & Holdings Bhd ranks #259 out of 750 companies in the REITs industry, which is above the industry midpoint. Overall, KLCC Property & Holdings Bhd has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does KLCC Property & Holdings Bhd's Operating Margin % compare to VICI and WPC?
According to the REITs industry distribution chart, KLCC Property & Holdings Bhd ranks #259 out of 750 companies for Operating Margin %. This puts KLCC Property & Holdings Bhd in the upper half of its industry. The industry median Operating Margin % is 52.67. KLCC Property & Holdings Bhd's value of 64.25% is 22% above this benchmark. Historically, KLCC Property & Holdings Bhd's own Operating Margin % has ranged from 61.69 to 71.90 over the past decade. While the company's 10-year median is 64.36 vs. the industry median of 52.67, KLCC Property & Holdings 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 REITs company?
The median Operating Margin % among REITs companies is 52.67, based on 750 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. KLCC Property & Holdings Bhd's current Operating Margin % of 64.25% is 22% 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 KLCC Property & Holdings Bhd and its competitors. For the REITs industry, the median Operating Margin % is 52.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KLCC Property & Holdings Bhd's current Operating Margin % is 64.25%, which is near median its own 10-year median of 64.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KLCC Property & Holdings Bhd stock overvalued right now?
Based on GuruFocus' analysis, KLCC Property & Holdings Bhd (XKLS:5235SS) is currently considered Fairly Valued. The stock's GF Value™ is RM8.38, compared to a current price of RM8.95 — trading 6.8% above its estimated fair value. The current Operating Margin % is 64.25%, which is near median its 10-year median of 64.36 and 22% above the REITs industry median of 52.67. KLCC Property & Holdings Bhd's overall GF Score™ is 87/100 with 7 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 KLCC Property & Holdings Bhd (XKLS:5235SS), the current Operating Margin % is 64.25% 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 KLCC Property & Holdings Bhd (XKLS:5235SS) Overvalued in 2026?
Based on GuruFocus' analysis, KLCC Property & Holdings Bhd stock appears to be overvalued.
The current stock price of RM8.95 is trading 6.8% above its estimated GF Value™ of RM8.38.
GuruFocus considers KLCC Property & Holdings Bhd to be Fairly Valued.
Key valuation signals for XKLS:5235SS:
Operating Margin %: 64.25% (near median its 10-year median of 64.36)
GF Value™: RM8.38 vs. price of RM8.95 (6.8% above fair value)
Industry Position: 22% above the REITs median (#259 of 750)
No single metric tells the full story. See the XKLS:5235SS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KLCC Property & Holdings Bhd is a real estate investment company engaged in the ownership, management, and redevelopment of office and retail space in Malaysia. Its property portfolio consists of offices, retail, and hotels. Through its subsidiaries, it also provides facility management services and car parking management services. Its segments are Property investment-Office, which generates maximum revenue, offers rental of office spaces; Property investment-Retail providing rental of retail spaces; Hotel operations providing rental of hotel rooms, the sale of food and beverages and other related activities; and Management services engaged in car park operations, management of a real estate investment trust and general management services. The group geographically operates in Malaysia.
87GF Score
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