Rhong Khen International Bhd operating margin has been in a 5-year decline. The average rate of decline per year is -10.9%.
The historical rank and industry rank for Rhong Khen International Bhd's Operating Margin % or its related term are showing as below:
XKLS:7006'
s Operating Margin % Range Over the Past 10 Years
Min: -1.86 Med: 5.3 Max: 11.68
Current: -1.86
XKLS:7006's Operating Margin % is ranked worse than 77.44% of 430
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 3.69
vs XKLS:7006: -1.86
Rhong Khen International Bhd (XKLS:7006) 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.
Rhong Khen International Bhd Operating Margin % Related Terms
Rhong Khen International 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.
Rhong Khen International Bhd Operating Margin % Chart
XKLS:7006 vs SN, SGI, MHK: Operating Margin % Comparison
For the Furnishings, Fixtures & Appliances subindustry, Rhong Khen International 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.
Rhong Khen International Bhd Operating Margin % vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Rhong Khen International Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Rhong Khen International Bhd's Operating Margin % falls into.
Rhong Khen International 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.
Rhong Khen International Bhd (XKLS:7006) has a Operating Margin % of -8.00% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Rhong Khen International Bhd and its competitors. According to the industry distribution chart, Rhong Khen International Bhd ranks #333 out of 430 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 77.4%.
Is Rhong Khen International Bhd's Operating Margin % too high?
Rhong Khen International Bhd's current Operating Margin % is -8.00%. Based on the distribution chart, Rhong Khen International Bhd ranks #333 out of 430 companies in the Furnishings, Fixtures & Appliances industry, which is in the bottom quartile relative to peers. Overall, Rhong Khen International Bhd has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rhong Khen International Bhd's Operating Margin % compare to SN and SGI?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Rhong Khen International Bhd ranks #333 out of 430 companies for Operating Margin %. This places Rhong Khen International Bhd in the lower half of its industry. The industry median Operating Margin % is 3.69. 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 Furnishings, Fixtures & Appliances company?
The median Operating Margin % among Furnishings, Fixtures & Appliances companies is 3.69, based on 430 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. 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 Rhong Khen International Bhd and its competitors. For the Furnishings, Fixtures & Appliances industry, the median Operating Margin % is 3.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rhong Khen International Bhd's current Operating Margin % is -8.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rhong Khen International Bhd stock overvalued right now?
Based on GuruFocus' analysis, Rhong Khen International Bhd (XKLS:7006) is currently considered Fairly Valued. The stock's GF Value™ is RM1.12, compared to a current price of RM1.07 — trading 4.5% below its estimated fair value. The current Operating Margin % is -8.00%. Rhong Khen International Bhd's overall GF Score™ is 65/100 with 2 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 Rhong Khen International Bhd (XKLS:7006), the current Operating Margin % is -8.00% 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 Rhong Khen International Bhd (XKLS:7006) Overvalued in 2026?
Based on GuruFocus' analysis, Rhong Khen International Bhd stock appears to be undervalued.
The current stock price of RM1.07 is trading 4.5% below its estimated GF Value™ of RM1.12.
GuruFocus considers Rhong Khen International Bhd to be Fairly Valued.
Key valuation signals for XKLS:7006:
Operating Margin %: -8.00%
GF Value™: RM1.12 vs. price of RM1.07 (4.5% below fair value)
No single metric tells the full story. See the XKLS:7006 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rhong Khen International Bhd is a Malaysian investment holding company specializing in the manufacturing and distribution of wooden furniture and components, mainly rubber-wood products, for domestic and export markets. Its key products include dining and bedroom furniture, decorative panels, and polyester boards. About half of its raw materials are rubber wood, with the remainder sourced from poplar, pine, and other woods. The company operates through three segments: manufacturing, rental of investment properties, and investment holding, with the majority of its revenue generated from manufacturing. It serves markets in the United States, Southeast Asia, Australia, Canada, and other regions, with the United States contributing the highest portion of its revenue.
65GF Score
Get the complete analysis for XKLS:7006
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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