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Velesto Energy BhdXKLS:5243 -3.85%59 Operating Margin % is 19.97% as of Mar. 2026, which is 146% above its 10-year median of 8.13. GuruFocus rates XKLS:5243 with a GF Score™ of 59/100 and a GF Value™ of RM0.18 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 918 Oil & Gas companies, Velesto Energy Bhd ranks better than 79.08% on this metric.
Velesto Energy Bhd (XKLS:5243) 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.
Velesto Energy Bhd Operating Margin % Related Terms
Velesto Energy Bhd Operating Margin % Historical Data
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The historical data trend for Velesto Energy 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:5243 vs NE, RIG, VAL: Operating Margin % Comparison
For the Oil & Gas Drilling subindustry, Velesto Energy 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.
Velesto Energy Bhd Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Velesto Energy Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Velesto Energy Bhd's Operating Margin % falls into.
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.
Velesto Energy Bhd's Operating Margin % for the fiscal year that ended in Dec. 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.
Velesto Energy Bhd (XKLS:5243) has a Operating Margin % of 19.97% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Velesto Energy Bhd and its competitors. This is 146% above median its historical median of 8.13. According to the industry distribution chart, Velesto Energy Bhd ranks #192 out of 918 companies in the Oil & Gas industry, placing it in the top 20.9%.
Is Velesto Energy Bhd's Operating Margin % too high?
Velesto Energy Bhd's current Operating Margin % of 19.97% is 146% above median its 10-year median of 8.13. The Oil & Gas industry median Operating Margin % is 6.91. Velesto Energy Bhd's value of 19.97% is 189.2% above this industry median. Based on the distribution chart, Velesto Energy Bhd ranks #192 out of 918 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Velesto Energy Bhd has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Velesto Energy Bhd's Operating Margin % compare to NE and RIG?
According to the Oil & Gas industry distribution chart, Velesto Energy Bhd ranks #192 out of 918 companies for Operating Margin %. This places Velesto Energy Bhd in the top 21% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.91. Velesto Energy Bhd's value of 19.97% is 189.2% above this benchmark. While the company's 10-year median is 8.13 vs. the industry median of 6.91, Velesto Energy 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 an Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 6.91, based on 918 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. Velesto Energy Bhd's current Operating Margin % of 19.97% is 189.2% 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 Velesto Energy Bhd and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velesto Energy Bhd's current Operating Margin % is 19.97%, which is 146% above median its own 10-year median of 8.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Velesto Energy Bhd stock overvalued right now?
Based on GuruFocus' analysis, Velesto Energy Bhd (XKLS:5243) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.18, compared to a current price of RM0.25 — trading 38.9% above its estimated fair value. The current Operating Margin % is 19.97%, which is 146% above median its 10-year median of 8.13 and 189.2% above the Oil & Gas industry median of 6.91. Velesto Energy Bhd's overall GF Score™ is 59/100 with 3 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 Velesto Energy Bhd (XKLS:5243), the current Operating Margin % is 19.97% 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 Velesto Energy Bhd (XKLS:5243) Overvalued in 2026?
Based on GuruFocus' analysis, Velesto Energy Bhd stock appears to be overvalued.
The current stock price of RM0.25 is trading 38.9% above its estimated GF Value™ of RM0.18.
GuruFocus considers Velesto Energy Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:5243:
Operating Margin %: 19.97% (146% above median its 10-year median of 8.13)
GF Value™: RM0.18 vs. price of RM0.25 (38.9% above fair value)
Industry Position: 189.2% above the Oil & Gas median (#192 of 918)
No single metric tells the full story. See the XKLS:5243 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Velesto Energy Bhd is a Malaysia-based company that provides services to the oil and gas industry. It is engaged in the provision of drilling services for exploration, development, and production wells and workover services to the upstream sector of the oil and gas industry. It is also engaged in the provision of threading, inspection, and repair services for Oil Country Tubular Goods in Malaysia and overseas. The company operates under two segments, namely drilling services and others. The company has a geographical presence in Malaysia and other countries.
59GF Score
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