KESM Industries BhdXKLS:9334 +2.56%80 Operating Margin % is 28.98% as of Apr. 2026, which is 9% below its 10-year median of 31.70. GuruFocus rates XKLS:9334 with a GF Score™ of 80/100 and a GF Value™ of RM3.91 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,023 Semiconductors companies, KESM Industries Bhd ranks better than 94.04% on this metric.
KESM Industries Bhd (XKLS:9334) 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.
KESM Industries Bhd Operating Margin % Related Terms
KESM Industries Bhd Operating Margin % Historical Data
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The historical data trend for KESM 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:9334 vs NVDA, AVGO, MU: Operating Margin % Comparison
For the Semiconductors subindustry, KESM 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.
KESM Industries Bhd Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, KESM Industries Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where KESM Industries Bhd's Operating Margin % falls into.
KESM 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.
KESM Industries Bhd's Operating Margin % for the fiscal year that ended in Jul. 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.
KESM Industries Bhd (XKLS:9334) has a Operating Margin % of 28.98% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on KESM Industries Bhd and its competitors. This is near median its historical median of 31.70. Over the past decade, KESM Industries Bhd's Operating Margin % has ranged from 24.03 to 36.93. According to the industry distribution chart, KESM Industries Bhd ranks #61 out of 1023 companies in the Semiconductors industry, placing it in the top 6%.
Is KESM Industries Bhd's Operating Margin % too high?
KESM Industries Bhd's current Operating Margin % of 28.98% is near median its 10-year median of 31.70. Over the past 10 years, this metric has ranged from a low of 24.03 to a high of 36.93. The Semiconductors industry median Operating Margin % is 5.18. KESM Industries Bhd's value of 28.98% is 459.5% above this industry median. Based on the distribution chart, KESM Industries Bhd ranks #61 out of 1023 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, KESM Industries Bhd has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does KESM Industries Bhd's Operating Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, KESM Industries Bhd ranks #61 out of 1023 companies for Operating Margin %. This places KESM Industries Bhd in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.18. KESM Industries Bhd's value of 28.98% is 459.5% above this benchmark. Historically, KESM Industries Bhd's own Operating Margin % has ranged from 24.03 to 36.93 over the past decade. While the company's 10-year median is 31.70 vs. the industry median of 5.18, KESM 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 Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.18, based on 1,023 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. KESM Industries Bhd's current Operating Margin % of 28.98% is 459.5% 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 KESM Industries Bhd and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KESM Industries Bhd's current Operating Margin % is 28.98%, which is near median its own 10-year median of 31.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KESM Industries Bhd stock overvalued right now?
Based on GuruFocus' analysis, KESM Industries Bhd (XKLS:9334) is currently considered Fairly Valued. The stock's GF Value™ is RM3.91, compared to a current price of RM4.00 — trading 2.3% above its estimated fair value. The current Operating Margin % is 28.98%, which is near median its 10-year median of 31.70 and 459.5% above the Semiconductors industry median of 5.18. KESM Industries Bhd's overall GF Score™ is 80/100 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 KESM Industries Bhd (XKLS:9334), the current Operating Margin % is 28.98% as of Apr. 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 KESM Industries Bhd (XKLS:9334) Overvalued in 2026?
Based on GuruFocus' analysis, KESM Industries Bhd stock appears to be overvalued.
The current stock price of RM4.00 is trading 2.3% above its estimated GF Value™ of RM3.91.
GuruFocus considers KESM Industries Bhd to be Fairly Valued.
Key valuation signals for XKLS:9334:
Operating Margin %: 28.98% (near median its 10-year median of 31.70)
GF Value™: RM3.91 vs. price of RM4.00 (2.3% above fair value)
Industry Position: 459.5% above the Semiconductors median (#61 of 1023)
No single metric tells the full story. See the XKLS:9334 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KESM Industries Bhd operates through a single business segment, providing essential burn-in and testing services that ensure the reliability of semiconductors, including microprocessors, microcontrollers, and advanced sensors. Serving the semiconductor industry, the company's products support technologies across the automotive, industrial, consumer, and commercial sectors internationally. Its customer base spans key markets in the United States, Europe, and the Asia Pacific, with sales concentrated mainly in Malaysia, the People's Republic of China, Singapore, and other regions, and the majority of revenue comes from Malaysia.
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