DKLS Industries Bhd (XKLS:7528) 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.
DKLS Industries Bhd Operating Margin % Related Terms
DKLS Industries Bhd Operating Margin % Historical Data
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The historical data trend for DKLS Industries 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:7528 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, DKLS Industries 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.
DKLS Industries Bhd Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, DKLS Industries Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where DKLS Industries Bhd's Operating Margin % falls into.
DKLS Industries 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.
DKLS Industries 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.
DKLS Industries Bhd (XKLS:7528) has a Operating Margin % of 7.99% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on DKLS Industries Bhd and its competitors. According to the industry distribution chart, DKLS Industries Bhd ranks #465 out of 1767 companies in the Construction industry, placing it in the top 26.3%.
Is DKLS Industries Bhd's Operating Margin % too high?
DKLS Industries Bhd's current Operating Margin % is 7.99%. The Construction industry median Operating Margin % is 5.89. DKLS Industries Bhd's value of 7.99% is 35.7% above this industry median. Based on the distribution chart, DKLS Industries Bhd ranks #465 out of 1767 companies in the Construction industry, which is above the industry midpoint. Overall, DKLS Industries Bhd has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does DKLS Industries Bhd's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, DKLS Industries Bhd ranks #465 out of 1767 companies for Operating Margin %. This puts DKLS Industries Bhd in the upper half of its industry. The industry median Operating Margin % is 5.89. DKLS Industries Bhd's value of 7.99% is 35.7% above this benchmark. 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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. DKLS Industries Bhd's current Operating Margin % of 7.99% is 35.7% 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 DKLS Industries Bhd and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DKLS Industries Bhd's current Operating Margin % is 7.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DKLS Industries Bhd stock overvalued right now?
Based on GuruFocus' analysis, DKLS Industries Bhd (XKLS:7528) is currently considered Modestly Undervalued. The stock's GF Value™ is RM1.78, compared to a current price of RM1.42 — trading 20.2% below its estimated fair value. The current Operating Margin % is 7.99% and 35.7% above the Construction industry median of 5.89. DKLS Industries Bhd's overall GF Score™ is 72/100 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 DKLS Industries Bhd (XKLS:7528), the current Operating Margin % is 7.99% 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 DKLS Industries Bhd (XKLS:7528) Overvalued in 2026?
Based on GuruFocus' analysis, DKLS Industries Bhd stock appears to be undervalued.
The current stock price of RM1.42 is trading 20.2% below its estimated GF Value™ of RM1.78.
GuruFocus considers DKLS Industries Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:7528:
Operating Margin %: 7.99%
GF Value™: RM1.78 vs. price of RM1.42 (20.2% below fair value)
Industry Position: 35.7% above the Construction median (#465 of 1767)
No single metric tells the full story. See the XKLS:7528 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DKLS Industries Bhd is a company involved in the engineering and construction business sector. The company has various business segments, including Investment, Construction, Property development, quarry, Utilities, and Others. The company derives maximum revenue from the Quarry segment. Geographically company operates in Malaysia and the Lao People's Democratic Republic, out of which Malaysia accounts for the majority of revenue.
72GF Score
Get the complete analysis for XKLS:7528
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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