Dialog Group BhdXKLS:7277 -1.57%78 Operating Margin % is 16.88% as of Mar. 2026, which is 19% above its 10-year median of 14.19. GuruFocus rates XKLS:7277 with a GF Score™ of 78/100 and a GF Value™ of RM2.00 (Fairly Valued). The stock has 3 warning signs investors should review. Among 917 Oil & Gas companies, Dialog Group Bhd ranks better than 69.14% on this metric.
Dialog Group Bhd (XKLS:7277) 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.
Dialog Group Bhd Operating Margin % Related Terms
Dialog Group Bhd Operating Margin % Historical Data
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The historical data trend for Dialog 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:7277 vs SLB, BKR, HAL: Operating Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, Dialog 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.
Dialog Group Bhd Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Dialog Group Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Dialog 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.
Dialog Group Bhd's Operating Margin % for the fiscal year that ended in Jun. 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.
Dialog Group Bhd (XKLS:7277) has a Operating Margin % of 16.88% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Dialog Group Bhd and its competitors. This is 19% above median its historical median of 14.19. Over the past decade, Dialog Group Bhd's Operating Margin % has ranged from 5.26 to 24.47. According to the industry distribution chart, Dialog Group Bhd ranks #283 out of 917 companies in the Oil & Gas industry, placing it in the top 30.9%.
Is Dialog Group Bhd's Operating Margin % too high?
Dialog Group Bhd's current Operating Margin % of 16.88% is 19% above median its 10-year median of 14.19. Over the past 10 years, this metric has ranged from a low of 5.26 to a high of 24.47. The Oil & Gas industry median Operating Margin % is 6.97. Dialog Group Bhd's value of 16.88% is 142.2% above this industry median. Based on the distribution chart, Dialog Group Bhd ranks #283 out of 917 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Dialog Group Bhd has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dialog Group Bhd's Operating Margin % compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, Dialog Group Bhd ranks #283 out of 917 companies for Operating Margin %. This puts Dialog Group Bhd in the upper half of its industry. The industry median Operating Margin % is 6.97. Dialog Group Bhd's value of 16.88% is 142.2% above this benchmark. Historically, Dialog Group Bhd's own Operating Margin % has ranged from 5.26 to 24.47 over the past decade. While the company's 10-year median is 14.19 vs. the industry median of 6.97, Dialog 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 an Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 6.97, based on 917 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. Dialog Group Bhd's current Operating Margin % of 16.88% is 142.2% 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 Dialog Group Bhd and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dialog Group Bhd's current Operating Margin % is 16.88%, which is 19% above median its own 10-year median of 14.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dialog Group Bhd stock overvalued right now?
Based on GuruFocus' analysis, Dialog Group Bhd (XKLS:7277) is currently considered Fairly Valued. The stock's GF Value™ is RM2.00, compared to a current price of RM1.88 — trading 6% below its estimated fair value. The current Operating Margin % is 16.88%, which is 19% above median its 10-year median of 14.19 and 142.2% above the Oil & Gas industry median of 6.97. Dialog Group Bhd's overall GF Score™ is 78/100 with 3 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 Dialog Group Bhd (XKLS:7277), the current Operating Margin % is 16.88% 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 Dialog Group Bhd (XKLS:7277) Overvalued in 2026?
Based on GuruFocus' analysis, Dialog Group Bhd stock appears to be undervalued.
The current stock price of RM1.88 is trading 6% below its estimated GF Value™ of RM2.00.
GuruFocus considers Dialog Group Bhd to be Fairly Valued.
Key valuation signals for XKLS:7277:
Operating Margin %: 16.88% (19% above median its 10-year median of 14.19)
GF Value™: RM2.00 vs. price of RM1.88 (6% below fair value)
Industry Position: 142.2% above the Oil & Gas median (#283 of 917)
No single metric tells the full story. See the XKLS:7277 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dialog Group Bhd is an investment holding company managing subsidiaries across the energy sector. Its activities include logistics assets and services in tank terminals, upstream assets and services, engineering, procurement, construction, commissioning and fabrication, specialist products, plant maintenance and catalyst handling, petrochemicals, sustainable and renewables business, and digital technology and solutions. It provides engineering, procurement, construction, and commissioning for energy projects, plant maintenance and catalyst handling for refineries, specialist products, fabrication of process equipment, digital technology to improve efficiency, and petrochemicals. The company operates mainly in Malaysia and other regions, generating the majority of revenue from Malaysia.
78GF Score
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