Sunway Construction Group BhdXKLS:5263 +0.54%89 Operating Margin % is 11.17% as of Mar. 2026, which is 63% above its 10-year median of 6.84. GuruFocus rates XKLS:5263 with a GF Score™ of 89/100 and a GF Value™ of RM5.97 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,767 Construction companies, Sunway Construction Group Bhd ranks better than 69.61% on this metric.
Sunway Construction Group Bhd (XKLS:5263) 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.
Sunway Construction Group Bhd Operating Margin % Related Terms
Sunway Construction Group 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.
Sunway Construction Group Bhd Operating Margin % Chart
XKLS:5263 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Sunway Construction Group 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.
Sunway Construction Group Bhd Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Sunway Construction Group Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sunway Construction Group Bhd's Operating Margin % falls into.
Sunway Construction Group 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.
Sunway Construction Group Bhd (XKLS:5263) has a Operating Margin % of 11.17% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sunway Construction Group Bhd and its competitors. This is 63% above median its historical median of 6.84. Over the past decade, Sunway Construction Group Bhd's Operating Margin % has ranged from 5.35 to 9.74. According to the industry distribution chart, Sunway Construction Group Bhd ranks #537 out of 1767 companies in the Construction industry, placing it in the top 30.4%.
Is Sunway Construction Group Bhd's Operating Margin % too high?
Sunway Construction Group Bhd's current Operating Margin % of 11.17% is 63% above median its 10-year median of 6.84. Over the past 10 years, this metric has ranged from a low of 5.35 to a high of 9.74. The Construction industry median Operating Margin % is 5.89. Sunway Construction Group Bhd's value of 11.17% is 89.6% above this industry median. Based on the distribution chart, Sunway Construction Group Bhd ranks #537 out of 1767 companies in the Construction industry, which is above the industry midpoint. Overall, Sunway Construction Group Bhd has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sunway Construction Group Bhd's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Sunway Construction Group Bhd ranks #537 out of 1767 companies for Operating Margin %. This puts Sunway Construction Group Bhd in the upper half of its industry. The industry median Operating Margin % is 5.89. Sunway Construction Group Bhd's value of 11.17% is 89.6% above this benchmark. Historically, Sunway Construction Group Bhd's own Operating Margin % has ranged from 5.35 to 9.74 over the past decade. While the company's 10-year median is 6.84 vs. the industry median of 5.89, Sunway Construction Group 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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. Sunway Construction Group Bhd's current Operating Margin % of 11.17% is 89.6% 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 Sunway Construction Group Bhd and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sunway Construction Group Bhd's current Operating Margin % is 11.17%, which is 63% above median its own 10-year median of 6.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sunway Construction Group Bhd stock overvalued right now?
Based on GuruFocus' analysis, Sunway Construction Group Bhd (XKLS:5263) is currently considered Modestly Overvalued. The stock's GF Value™ is RM5.97, compared to a current price of RM7.47 — trading 25.1% above its estimated fair value. The current Operating Margin % is 11.17%, which is 63% above median its 10-year median of 6.84 and 89.6% above the Construction industry median of 5.89. Sunway Construction Group Bhd's overall GF Score™ is 89/100 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 Sunway Construction Group Bhd (XKLS:5263), the current Operating Margin % is 11.17% 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 Sunway Construction Group Bhd (XKLS:5263) Overvalued in 2026?
Based on GuruFocus' analysis, Sunway Construction Group Bhd stock appears to be overvalued.
The current stock price of RM7.47 is trading 25.1% above its estimated GF Value™ of RM5.97.
GuruFocus considers Sunway Construction Group Bhd to be Modestly Overvalued.
Key valuation signals for XKLS:5263:
Operating Margin %: 11.17% (63% above median its 10-year median of 6.84)
GF Value™: RM5.97 vs. price of RM7.47 (25.1% above fair value)
Industry Position: 89.6% above the Construction median (#537 of 1767)
No single metric tells the full story. See the XKLS:5263 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sunway Construction Group Bhd Business Description
Sunway Construction Group Bhd is a construction company. It provides design and construction services including building, civil engineering, infrastructure, mechanical, electrical, and plumbing (MEP) services and supply and installation of pre-cast concrete products. Its operations cover Malaysia, Singapore, the Middle East, and India. The operating segments of the company are Construction and Precast concrete. The maximum revenue is generated from the Construction segment. Geographically, the company operates in Malaysia, Singapore, India, Trinidad & Tobago, and United Arab Emirates.
89GF Score
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