Apex Healthcare Bhd (XKLS:7090) 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.
Apex Healthcare Bhd Operating Margin % Related Terms
Apex Healthcare Bhd Operating Margin % Historical Data
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The historical data trend for Apex Healthcare 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:7090 vs MCK, COR, CAH: Operating Margin % Comparison
For the Medical Distribution subindustry, Apex Healthcare 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.
Apex Healthcare Bhd Operating Margin % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Apex Healthcare Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Apex Healthcare Bhd's Operating Margin % falls into.
Apex Healthcare 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.
Apex Healthcare Bhd's Operating Margin % for the fiscal year that ended in Dec. 2024 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.
Apex Healthcare Bhd (XKLS:7090) has a Operating Margin % of 9.29% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Apex Healthcare Bhd and its competitors. This is 19% above median its historical median of 7.81. Over the past decade, Apex Healthcare Bhd's Operating Margin % has ranged from 6.93 to 10.05.
Is Apex Healthcare Bhd's Operating Margin % too high?
Apex Healthcare Bhd's current Operating Margin % of 9.29% is 19% above median its 10-year median of 7.81. Over the past 10 years, this metric has ranged from a low of 6.93 to a high of 10.05. The Medical Distribution industry median Operating Margin % is 3.07. Apex Healthcare Bhd's value of 9.29% is 202.6% above this industry median. Overall, Apex Healthcare Bhd has a GF Score™ of 63/100, reflecting its overall financial health beyond just this single metric.
How does Apex Healthcare Bhd's Operating Margin % compare to MCK and COR?
Apex Healthcare Bhd's Operating Margin % of 9.29% can be compared against companies in the Medical Distribution industry. The industry median Operating Margin % is 3.07. Apex Healthcare Bhd's value of 9.29% is 202.6% above this benchmark. Historically, Apex Healthcare Bhd's own Operating Margin % has ranged from 6.93 to 10.05 over the past decade. While the company's 10-year median is 7.81 vs. the industry median of 3.07, Apex Healthcare 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 Medical Distribution company?
The median Operating Margin % among Medical Distribution companies is 3.07, based on 119 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. Apex Healthcare Bhd's current Operating Margin % of 9.29% is 202.6% 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 Apex Healthcare Bhd and its competitors. For the Medical Distribution industry, the median Operating Margin % is 3.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Apex Healthcare Bhd's current Operating Margin % is 9.29%, which is 19% above median its own 10-year median of 7.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Apex Healthcare Bhd stock overvalued right now?
Apex Healthcare Bhd (XKLS:7090) has a current Operating Margin % of 9.29%. The stock's GF Value™ is RM2.27, compared to a current price of RM2.61 — trading 15% above its estimated fair value. The current Operating Margin % is 9.29%, which is 19% above median its 10-year median of 7.81 and 202.6% above the Medical Distribution industry median of 3.07. Apex Healthcare Bhd's overall GF Score™ is 63/100 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 Apex Healthcare Bhd (XKLS:7090), the current Operating Margin % is 9.29% as of Sep. 2025. 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 Apex Healthcare Bhd (XKLS:7090) Overvalued in 2026?
Based on GuruFocus' analysis, Apex Healthcare Bhd stock appears to be overvalued.
The current stock price of RM2.61 is trading 15% above its estimated GF Value™ of RM2.27.
Key valuation signals for XKLS:7090:
Operating Margin %: 9.29% (19% above median its 10-year median of 7.81)
GF Value™: RM2.27 vs. price of RM2.61 (15% above fair value)
Industry Position: 202.6% above the Medical Distribution median
No single metric tells the full story. See the XKLS:7090 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Apex Healthcare Bhd is an investment holding company for a group of companies engaged in the development, manufacturing, marketing, and distribution of pharmaceuticals, diagnostics, consumer healthcare products, and orthopedic devices. It has direct operations in Malaysia, Singapore and Others. The company has two manufacturing plants in Melaka and Penang. It has three segments: Manufacturing, Distribution and Corporate. It derives maximum revenue from Malaysia and also has a presence in Singapore and other couintries.
63GF Score
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