CPE Technology BhdXKLS:5317 +6.76%45 Operating Margin % is 18.62% as of Mar. 2026, which is 15% below its 10-year median of 21.93. GuruFocus rates XKLS:5317 with a GF Score™ of 45/100. The stock has 5 warning signs investors should review. Among 2,471 Hardware companies, CPE Technology Bhd ranks better than 84.5% on this metric.
CPE Technology Bhd (XKLS:5317) 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.
CPE Technology Bhd Operating Margin % Related Terms
CPE Technology Bhd Operating Margin % Historical Data
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The historical data trend for CPE Technology 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:5317 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, CPE Technology 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.
CPE Technology Bhd Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, CPE Technology Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where CPE Technology 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.
CPE Technology Bhd's Operating Margin % for the fiscal year that ended in Jun. 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.
CPE Technology Bhd (XKLS:5317) has a Operating Margin % of 18.62% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on CPE Technology Bhd and its competitors. This is 15% below median its historical median of 21.93. Over the past decade, CPE Technology Bhd's Operating Margin % has ranged from 11.97 to 33.16. According to the industry distribution chart, CPE Technology Bhd ranks #383 out of 2471 companies in the Hardware industry, placing it in the top 15.5%.
Is CPE Technology Bhd's Operating Margin % too high?
CPE Technology Bhd's current Operating Margin % of 18.62% is 15% below median its 10-year median of 21.93. Over the past 10 years, this metric has ranged from a low of 11.97 to a high of 33.16. The Hardware industry median Operating Margin % is 3.80. CPE Technology Bhd's value of 18.62% is 390% above this industry median. Based on the distribution chart, CPE Technology Bhd ranks #383 out of 2471 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, CPE Technology Bhd has a GF Score™ of 45/100, reflecting its overall financial health beyond just this single metric.
How does CPE Technology Bhd's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, CPE Technology Bhd ranks #383 out of 2471 companies for Operating Margin %. This places CPE Technology Bhd in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. CPE Technology Bhd's value of 18.62% is 390% above this benchmark. Historically, CPE Technology Bhd's own Operating Margin % has ranged from 11.97 to 33.16 over the past decade. While the company's 10-year median is 21.93 vs. the industry median of 3.80, CPE Technology 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,471 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. CPE Technology Bhd's current Operating Margin % of 18.62% is 390% 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 CPE Technology Bhd and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CPE Technology Bhd's current Operating Margin % is 18.62%, which is 15% below median its own 10-year median of 21.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CPE Technology Bhd stock overvalued right now?
CPE Technology Bhd (XKLS:5317) has a current Operating Margin % of 18.62%. The current Operating Margin % is 18.62%, which is 15% below median its 10-year median of 21.93 and 390% above the Hardware industry median of 3.80. CPE Technology Bhd's overall GF Score™ is 45/100 with 5 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 CPE Technology Bhd (XKLS:5317), the current Operating Margin % is 18.62% 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.
CPE Technology Bhd is an investment holding company that focuses on manufacturing precision-machined parts and components through its subsidiaries. The company is involved in precision machining and mechanical sub-assembly, including CNC turning and milling, turn-mill, and finishing processes. It also engages in trading precision machine parts and components. The company uses computer numerically controlled machinery integrated with CAD/CAM software to manufacture parts and assemblies used in sectors such as consumer electronics and semiconductors, automotive components, health and science, among others. Geographically, the company generates the majority of its revenue from the United States, with the rest coming from Singapore, Malaysia, Italy, Japan, Thailand, and other regions.
45GF Score
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