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Dominant Enterprise Bhd (XKLS:7169) Operating Margin % : 4.23% (As of Dec. 2023)


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What is Dominant Enterprise Bhd Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Dominant Enterprise Bhd's Operating Income for the three months ended in Dec. 2023 was RM9.9 Mil. Dominant Enterprise Bhd's Revenue for the three months ended in Dec. 2023 was RM234.9 Mil. Therefore, Dominant Enterprise Bhd's Operating Margin % for the quarter that ended in Dec. 2023 was 4.23%.

Warning Sign:

Dominant Enterprise Bhd operating margin has been in a 5-year decline. The average rate of decline per year is -10.1%.

The historical rank and industry rank for Dominant Enterprise Bhd's Operating Margin % or its related term are showing as below:

XKLS:7169' s Operating Margin % Range Over the Past 10 Years
Min: 2.68   Med: 6.02   Max: 7.67
Current: 3.15


XKLS:7169's Operating Margin % is ranked worse than
53.82% of 288 companies
in the Forest Products industry
Industry Median: 3.825 vs XKLS:7169: 3.15

Dominant Enterprise Bhd's 5-Year Average Operating Margin % Growth Rate was -10.10% per year.

Dominant Enterprise Bhd's Operating Income for the three months ended in Dec. 2023 was RM9.9 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was RM27.4 Mil.


Dominant Enterprise Bhd Operating Margin % Historical Data

The historical data trend for Dominant Enterprise 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.

Dominant Enterprise Bhd Operating Margin % Chart

Dominant Enterprise Bhd Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.04 4.08 4.06 7.67 2.68

Dominant Enterprise Bhd Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 3.12 0.93 4.11 3.21 4.23

Competitive Comparison of Dominant Enterprise Bhd's Operating Margin %

For the Lumber & Wood Production subindustry, Dominant Enterprise 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.


Dominant Enterprise Bhd's Operating Margin % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Dominant Enterprise Bhd's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Dominant Enterprise Bhd's Operating Margin % falls into.



Dominant Enterprise 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.

Dominant Enterprise Bhd's Operating Margin % for the fiscal year that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=21.184 / 791.58
=2.68 %

Dominant Enterprise Bhd's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=9.947 / 234.91
=4.23 %

* 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.


Dominant Enterprise Bhd  (XKLS:7169) 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.


Dominant Enterprise Bhd Operating Margin % Related Terms

Thank you for viewing the detailed overview of Dominant Enterprise Bhd's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Dominant Enterprise Bhd (XKLS:7169) Business Description

Traded in Other Exchanges
N/A
Address
No. 2, Jalan Gemilang 1, Taman Perindustrian Maju Jaya, Johor Bahru, JHR, MYS, 81300
Dominant Enterprise Bhd is a Malaysia-based company engaged in the business of manufacturing and distribution of engineered wood moldings, investment holding, providing management services, laminated wood panels, and other wood accessories. The company is organized into two business segments: The manufacturing segment comprises of production of laminated wood panel products and primed density fiberboard moldings, wrapped moldings, and furniture components; and the Distribution segment comprises of distribution of wood products and building materials which also contributes as a main part of revenue. It operates mainly in the Malaysian market, while it also has a presence in Australia, Asia, and other countries.

Dominant Enterprise Bhd (XKLS:7169) Headlines

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