ASTEEL Group BhdXKLS:7020 Operating Margin % is 96.52% as of Mar. 2026, which is 3054% above its 10-year median of 3.06. The stock has 4 warning signs investors should review. Among 615 Steel companies, ASTEEL Group Bhd ranks better than 96.26% on this metric.
ASTEEL Group Bhd has recorded a loss in operating income at least once over the past 3 years.
ASTEEL Group Bhd (XKLS:7020) 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.
ASTEEL Group Bhd Operating Margin % Related Terms
ASTEEL Group Bhd Operating Margin % Historical Data
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The historical data trend for ASTEEL Group 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:7020 vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, ASTEEL 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.
ASTEEL Group Bhd Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, ASTEEL Group Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ASTEEL Group 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.
ASTEEL Group 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.
ASTEEL Group Bhd (XKLS:7020) has a Operating Margin % of 96.52% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on ASTEEL Group Bhd and its competitors. This is 3054% above median its historical median of 3.06. According to the industry distribution chart, ASTEEL Group Bhd ranks #23 out of 615 companies in the Steel industry, placing it in the top 3.7%.
Is ASTEEL Group Bhd's Operating Margin % too high?
ASTEEL Group Bhd's current Operating Margin % of 96.52% is 3054% above median its 10-year median of 3.06. The Steel industry median Operating Margin % is 2.99. ASTEEL Group Bhd's value of 96.52% is 3128.1% above this industry median. Based on the distribution chart, ASTEEL Group Bhd ranks #23 out of 615 companies in the Steel industry, which is in the top quartile — a strong position relative to peers.
How does ASTEEL Group Bhd's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, ASTEEL Group Bhd ranks #23 out of 615 companies for Operating Margin %. This places ASTEEL Group Bhd in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 2.99. ASTEEL Group Bhd's value of 96.52% is 3128.1% above this benchmark. While the company's 10-year median is 3.06 vs. the industry median of 2.99, ASTEEL 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 Steel company?
The median Operating Margin % among Steel companies is 2.99, based on 615 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. ASTEEL Group Bhd's current Operating Margin % of 96.52% is 3128.1% 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 ASTEEL Group Bhd and its competitors. For the Steel industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ASTEEL Group Bhd's current Operating Margin % is 96.52%, which is 3054% above median its own 10-year median of 3.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ASTEEL Group Bhd stock overvalued right now?
Based on GuruFocus' analysis, ASTEEL Group Bhd (XKLS:7020) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.09, compared to a current price of RM0.06 — trading 33.3% below its estimated fair value. The current Operating Margin % is 96.52%, which is 3054% above median its 10-year median of 3.06 and 3128.1% above the Steel industry median of 2.99. 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 ASTEEL Group Bhd (XKLS:7020), the current Operating Margin % is 96.52% 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.
ASTEEL Group Bhd specializes in steel roofing and structure design and building, and focuses on the downstream industry for other building and construction materials. It is involved in the manufacturing of coated steel products and processing of metal roofing, wall cladding & fencing, metal floor decking, light gauge structural components, purlins, and framing systems under the brands ASTEEL and ASTAR. The firm operates in two segments: ARSB and STARSHINE. The ARSB segment that generates the majority of its revenue, engages in manufacturing and selling coated steel products and downstream roofing products, trading of hardware and building materials in Sabah and Sarawak, East Malaysia.
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