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MY E.G.Services Bhd (XKLS:0138) Operating Margin % : 69.55% (As of Sep. 2023)


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What is MY E.G.Services Bhd Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. MY E.G.Services Bhd's Operating Income for the three months ended in Sep. 2023 was RM135.0 Mil. MY E.G.Services Bhd's Revenue for the three months ended in Sep. 2023 was RM194.1 Mil. Therefore, MY E.G.Services Bhd's Operating Margin % for the quarter that ended in Sep. 2023 was 69.55%.

Good Sign:

MY E.G.Services Bhd operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for MY E.G.Services Bhd's Operating Margin % or its related term are showing as below:

XKLS:0138' s Operating Margin % Range Over the Past 10 Years
Min: 40.65   Med: 58.43   Max: 71.99
Current: 71.99


XKLS:0138's Operating Margin % is ranked better than
99.6% of 2758 companies
in the Software industry
Industry Median: 3.18 vs XKLS:0138: 71.99

MY E.G.Services Bhd's 5-Year Average Operating Margin % Growth Rate was 0.30% per year.

MY E.G.Services Bhd's Operating Income for the three months ended in Sep. 2023 was RM135.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was RM516.3 Mil.


MY E.G.Services Bhd Operating Margin % Historical Data

The historical data trend for MY E.G.Services 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.

* Premium members only.

MY E.G.Services Bhd Operating Margin % Chart

MY E.G.Services Bhd Annual Data
Trend Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Dec20 Dec21 Dec22
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 57.48 60.18 58.10 51.59 65.37

MY E.G.Services Bhd Quarterly Data
Dec17 Mar18 Dec18 Mar19 Jun19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 58.72 93.96 60.35 65.86 69.55

Competitive Comparison of MY E.G.Services Bhd's Operating Margin %

For the Information Technology Services subindustry, MY E.G.Services 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.


MY E.G.Services Bhd's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, MY E.G.Services Bhd's Operating Margin % distribution charts can be found below:

* The bar in red indicates where MY E.G.Services Bhd's Operating Margin % falls into.



MY E.G.Services 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.

MY E.G.Services Bhd's Operating Margin % for the fiscal year that ended in Dec. 2022 is calculated as

Operating Margin %=Operating Income (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=425.615 / 651.107
=65.37 %

MY E.G.Services Bhd's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=135.01 / 194.121
=69.55 %

* 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.


MY E.G.Services Bhd  (XKLS:0138) 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.


MY E.G.Services Bhd Operating Margin % Related Terms

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MY E.G.Services Bhd (XKLS:0138) Business Description

Traded in Other Exchanges
N/A
Address
No. 8, Jalan Damansara, PJU 8, Level 43A, MYEG Tower, Empire City, Petaling Jaya, SGR, MYS, 47820
MY E.G.Services Bhd, or MYEG, provides electronic government solutions and services in Malaysia. The company is majorly engaged in the development and implementation of the Electronic Government Services project, the provision of other related services, and investment holding. Electronic Government Services include the testing, issuance, and renewal of drivers' licenses, renewal of vehicle road tax, vehicle ownership transfer, the renewal of foreign workers permits, bankruptcy status searches, and payment systems. It also provides commercial offerings, such as insurance, credit and debit payment solutions, tracking systems, and telecommunications services. It derives the majority of revenue from Malaysia.

MY E.G.Services Bhd (XKLS:0138) Headlines

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