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Muhibbah Engineering (M) BhdXKLS:5703 52 Operating Margin % is 5.37% as of Mar. 2026, which is 20% above its 10-year median of 4.47. GuruFocus rates XKLS:5703 with a GF Score™ of 52/100 and a GF Value™ of RM0.59 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 1,765 Construction companies, Muhibbah Engineering (M) Bhd ranks better than 53.37% on this metric.
Muhibbah Engineering (M) Bhd (XKLS:5703) 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.
Muhibbah Engineering (M) Bhd Operating Margin % Related Terms
Muhibbah Engineering (M) 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.
Muhibbah Engineering (M) Bhd Operating Margin % Chart
XKLS:5703 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Muhibbah Engineering (M) 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.
Muhibbah Engineering (M) Bhd Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Muhibbah Engineering (M) Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Muhibbah Engineering (M) Bhd's Operating Margin % falls into.
Muhibbah Engineering (M) 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.
Muhibbah Engineering (M) Bhd (XKLS:5703) has a Operating Margin % of 5.37% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Muhibbah Engineering (M) Bhd and its competitors. This is 20% above median its historical median of 4.47. According to the industry distribution chart, Muhibbah Engineering (M) Bhd ranks #823 out of 1765 companies in the Construction industry, placing it in the top 46.6%.
Is Muhibbah Engineering (M) Bhd's Operating Margin % too high?
Muhibbah Engineering (M) Bhd's current Operating Margin % of 5.37% is 20% above median its 10-year median of 4.47. The Construction industry median Operating Margin % is 5.89. Muhibbah Engineering (M) Bhd's value of 5.37% is 8.8% below this industry median. Based on the distribution chart, Muhibbah Engineering (M) Bhd ranks #823 out of 1765 companies in the Construction industry, which is above the industry midpoint. Overall, Muhibbah Engineering (M) Bhd has a GF Score™ of 52/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Muhibbah Engineering (M) Bhd's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Muhibbah Engineering (M) Bhd ranks #823 out of 1765 companies for Operating Margin %. This puts Muhibbah Engineering (M) Bhd in the upper half of its industry. The industry median Operating Margin % is 5.89. Muhibbah Engineering (M) Bhd's value of 5.37% is 8.8% below this benchmark. While the company's 10-year median is 4.47 vs. the industry median of 5.89, Muhibbah Engineering (M) Bhd has consistently been below 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 1,765 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. Muhibbah Engineering (M) Bhd's current Operating Margin % of 5.37% is 8.8% below 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 Muhibbah Engineering (M) 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. Muhibbah Engineering (M) Bhd's current Operating Margin % is 5.37%, which is 20% above median its own 10-year median of 4.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muhibbah Engineering (M) Bhd stock overvalued right now?
Based on GuruFocus' analysis, Muhibbah Engineering (M) Bhd (XKLS:5703) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.59, compared to a current price of RM0.52 — trading 11.9% below its estimated fair value. The current Operating Margin % is 5.37%, which is 20% above median its 10-year median of 4.47 and 8.8% below the Construction industry median of 5.89. Muhibbah Engineering (M) Bhd's overall GF Score™ is 52/100 with 8 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 Muhibbah Engineering (M) Bhd (XKLS:5703), the current Operating Margin % is 5.37% 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 Muhibbah Engineering (M) Bhd (XKLS:5703) Overvalued in 2026?
Based on GuruFocus' analysis, Muhibbah Engineering (M) Bhd stock appears to be undervalued.
The current stock price of RM0.52 is trading 11.9% below its estimated GF Value™ of RM0.59.
GuruFocus considers Muhibbah Engineering (M) Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:5703:
Operating Margin %: 5.37% (20% above median its 10-year median of 4.47)
GF Value™: RM0.59 vs. price of RM0.52 (11.9% below fair value)
Industry Position: 8.8% below the Construction median (#823 of 1765)
No single metric tells the full story. See the XKLS:5703 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Muhibbah Engineering (M) Bhd is engaged in providing oil and gas, marine, infrastructure, civil, and structural engineering contract works. In addition to these, it also manufactures engineering products and distributes and markets construction materials. The segments in which the Group operates include Infrastructure Construction, Cranes, Marine shipbuilding and ship repair, and Concession. The business activity of the company functions in Asia, Europe, America, the Middle East, and Australia.
52GF Score
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