Arka Bhd (XKLS:7218) Operating Margin %: -20.86% (As of Mar. 2026)


XKLS:7218 Arka Bhd XKLS:7218
59 GF Score
Price RM0.40
GF Value RM1.44
Valuation Significantly Undervalued
! 2 Warning Signs
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What is Arka Bhd Operating Margin %?

Arka Bhd XKLS:7218 59 Operating Margin % is -20.86% as of Mar. 2026. GuruFocus rates XKLS:7218 with a GF Score™ of 59/100 and a GF Value™ of RM1.44 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,007 Transportation companies, Arka Bhd ranks worse than 94.44% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Arka Bhd's Operating Income for the three months ended in Mar. 2026 was RM-1.37 Mil. Arka Bhd's Revenue for the three months ended in Mar. 2026 was RM6.59 Mil. Therefore, Arka Bhd's Operating Margin % for the quarter that ended in Mar. 2026 was -20.86%.

The historical rank and industry rank for Arka Bhd's Operating Margin % or its related term are showing as below:

XKLS:7218' s Operating Margin % Range Over the Past 10 Years
Min: -47.58   Med: -7.71   Max: 4.25
Current: -15.41


XKLS:7218's Operating Margin % is ranked worse than
94.44% of 1007 companies
in the Transportation industry
Industry Median: 7.36 vs XKLS:7218: -15.41

Arka Bhd's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Arka Bhd's Operating Income for the three months ended in Mar. 2026 was RM-1.37 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was RM-4.88 Mil.


Arka Bhd  (XKLS:7218) 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 Nokia’s 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.


Arka Bhd Operating Margin % Related Terms


Arka Bhd Operating Margin % Historical Data

* Premium members only.

The historical data trend for Arka 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.

Arka Bhd Operating Margin % Chart

Arka Bhd Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.73 1.48 -9.36 -47.58 -24.03

Arka Bhd Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -39.68 -20.32 -11.16 -11.14 -20.86

XKLS:7218 vs FDX, UPS, JBHT: Operating Margin % Comparison

For the Integrated Freight & Logistics subindustry, Arka 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.


Arka Bhd Operating Margin % vs Transportation Industry

For the Transportation industry and Industrials sector, Arka Bhd's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Arka Bhd's Operating Margin % falls into.


XKLS:7218
59GF Score
Arka Bhd XKLS:7218
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Arka 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.

Arka Bhd's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=-7.663 / 31.89
=-24.03 %

Arka Bhd's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=-1.374 / 6.587
=-20.86 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -20.86% mean?
Arka Bhd (XKLS:7218) has a Operating Margin % of -20.86% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Arka Bhd and its competitors. According to the industry distribution chart, Arka Bhd ranks #951 out of 1007 companies in the Transportation industry, placing it in the top 94.4%.
Is Arka Bhd's Operating Margin % too high?
Arka Bhd's current Operating Margin % is -20.86%. Based on the distribution chart, Arka Bhd ranks #951 out of 1007 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Arka Bhd has a GF Score™ of 59/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arka Bhd's Operating Margin % compare to FDX and UPS?
According to the Transportation industry distribution chart, Arka Bhd ranks #951 out of 1007 companies for Operating Margin %. This places Arka Bhd in the lower half of its industry. The industry median Operating Margin % is 7.36. 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 Transportation company?
The median Operating Margin % among Transportation companies is 7.36, based on 1,007 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 Arka Bhd and its competitors. For the Transportation industry, the median Operating Margin % is 7.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arka Bhd's current Operating Margin % is -20.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arka Bhd stock overvalued right now?
Based on GuruFocus' analysis, Arka Bhd (XKLS:7218) is currently considered Significantly Undervalued. The stock's GF Value™ is RM1.44, compared to a current price of RM0.40 — trading 72.2% below its estimated fair value. The current Operating Margin % is -20.86%. Arka Bhd's overall GF Score™ is 59/100 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 Arka Bhd (XKLS:7218), the current Operating Margin % is -20.86% 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 Arka Bhd (XKLS:7218) Overvalued in 2026?

Based on GuruFocus' analysis, Arka Bhd stock appears to be undervalued. The current stock price of RM0.40 is trading 72.2% below its estimated GF Value™ of RM1.44. GuruFocus considers Arka Bhd to be Significantly Undervalued.

Key valuation signals for XKLS:7218:

  • Operating Margin %: -20.86%
  • GF Value™: RM1.44 vs. price of RM0.40 (72.2% below fair value)
  • GF Score™: 59/100 with 2 warning signs

No single metric tells the full story. See the XKLS:7218 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arka Bhd Business Description

Address Lot 2955, 2956 & 2957, Jalan Perusahaan Sungai Lokan 3, Kawasan Perusahaan Sungai Lokan, Butterworth, PNG, MYS, 13400
Arka Bhd is a provider of logistics and logistics-related activities. The company provides trucking services and cross-border trucking services for consolidation cargo or loose truck loads services from the Malaysia-Singapore-Malaysia and Malaysia-Thailand-Malaysia routes. Its segments consist of Logistic solutions which derive majority revenue provides customs brokerage, warehousing, freight forwarding trucking related services, international air, and ocean freight services; Tyre products that manufacture and trades in tyres; Technology division engaged in technology service activities including providing infrastructure for hosting, data processing services and related activities and Investment holdings that provide management services and letting of properties.
59GF Score

Get the complete analysis for XKLS:7218

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

RM0.40
Price
RM1.44
GF Value