EG Industries BhdXKLS:8907 -2.70%67 Operating Margin % is 15.49% as of Mar. 2026, which is 413% above its 10-year median of 3.02. GuruFocus rates XKLS:8907 with a GF Score™ of 67/100 and a GF Value™ of RM1.21 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 2,472 Hardware companies, EG Industries Bhd ranks better than 84.34% on this metric.
EG Industries Bhd has recorded a loss in operating income at least once over the past 3 years.
EG Industries Bhd (XKLS:8907) 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.
EG Industries Bhd Operating Margin % Related Terms
EG Industries Bhd Operating Margin % Historical Data
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The historical data trend for EG 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:8907 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, EG 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.
EG Industries Bhd Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, EG Industries Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where EG Industries 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.
EG Industries 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.
EG Industries Bhd (XKLS:8907) has a Operating Margin % of 15.49% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on EG Industries Bhd and its competitors. This is 413% above median its historical median of 3.02. According to the industry distribution chart, EG Industries Bhd ranks #387 out of 2472 companies in the Hardware industry, placing it in the top 15.7%.
Is EG Industries Bhd's Operating Margin % too high?
EG Industries Bhd's current Operating Margin % of 15.49% is 413% above median its 10-year median of 3.02. The Hardware industry median Operating Margin % is 3.81. EG Industries Bhd's value of 15.49% is 306.6% above this industry median. Based on the distribution chart, EG Industries Bhd ranks #387 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, EG Industries Bhd has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does EG Industries Bhd's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, EG Industries Bhd ranks #387 out of 2472 companies for Operating Margin %. This places EG Industries Bhd in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.81. EG Industries Bhd's value of 15.49% is 306.6% above this benchmark. While the company's 10-year median is 3.02 vs. the industry median of 3.81, EG Industries 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.81, based on 2,472 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. EG Industries Bhd's current Operating Margin % of 15.49% is 306.6% 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 EG Industries Bhd and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EG Industries Bhd's current Operating Margin % is 15.49%, which is 413% above median its own 10-year median of 3.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EG Industries Bhd stock overvalued right now?
Based on GuruFocus' analysis, EG Industries Bhd (XKLS:8907) is currently considered Significantly Overvalued. The stock's GF Value™ is RM1.21, compared to a current price of RM1.80 — trading 48.8% above its estimated fair value. The current Operating Margin % is 15.49%, which is 413% above median its 10-year median of 3.02 and 306.6% above the Hardware industry median of 3.81. EG Industries Bhd's overall GF Score™ is 67/100 with 11 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 EG Industries Bhd (XKLS:8907), the current Operating Margin % is 15.49% 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 EG Industries Bhd (XKLS:8907) Overvalued in 2026?
Based on GuruFocus' analysis, EG Industries Bhd stock appears to be overvalued.
The current stock price of RM1.80 is trading 48.8% above its estimated GF Value™ of RM1.21.
GuruFocus considers EG Industries Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:8907:
Operating Margin %: 15.49% (413% above median its 10-year median of 3.02)
GF Value™: RM1.21 vs. price of RM1.80 (48.8% above fair value)
Industry Position: 306.6% above the Hardware median (#387 of 2472)
No single metric tells the full story. See the XKLS:8907 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EG Industries Bhd is an investment holding company, which engages in the provision of management services. Along with its subsidiaries, the company operates through the following segments: Electronic Manufacturing Services and Original Equipment Manufacturer/Original Design Manufacturer for Electronic and Electrical Products; and Other Non-reportable segments. The Other Non-reportable segment comprises operations related to investment holding and research and development. The company offers manufacturing services for computer peripherals, consumer electronic/electrical products, medical equipment, automotive industrial products, and telecommunication and other technological products industries. Geographically, it derives maximum revenue from Thailand.
67GF Score
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