NetX Holdings BhdXKLS:0020 -7.69% Gross Margin % is 89.33% as of Feb. 2026, which is 88% above its 10-year median of 47.39. The stock has 4 warning signs investors should review. Among 2,680 Software companies, NetX Holdings Bhd ranks better than 75.52% on this metric.
The historical rank and industry rank for NetX Holdings Bhd's Gross Margin % or its related term are showing as below:
XKLS:0020'
s Gross Margin % Range Over the Past 10 Years
Min: 0.11 Med: 47.39 Max: 65.6
Current: 65.6
During the past 13 years, the highestGross Margin % of NetX Holdings Bhd was 65.60%. The lowest was 0.11%. And the median was 47.39%.
XKLS:0020's Gross Margin % is ranked better than 75.52% of 2680
companies
in the Software industry
Industry Median: 40.45
vs XKLS:0020: 65.60
NetX Holdings Bhd had a gross margin of 89.33% for the quarter that ended in Feb. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for NetX Holdings Bhd was 17.20% per year.
NetX Holdings Bhd (XKLS:0020) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
NetX Holdings Bhd had a gross margin of 89.33% for the quarter that ended in Feb. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
NetX Holdings Bhd Gross Margin % Related Terms
NetX Holdings Bhd Gross Margin % Historical Data
* Premium members only.
The historical data trend for NetX Holdings Bhd's Gross 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:0020 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, NetX Holdings Bhd's Gross Margin %, along with its competitors' market caps and Gross 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.
NetX Holdings Bhd Gross Margin % vs Software Industry
For the Software industry and Technology sector, NetX Holdings Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NetX Holdings Bhd's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
NetX Holdings Bhd (XKLS:0020) has a Gross Margin % of 89.33% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on NetX Holdings Bhd and its competitors. This is 88% above median its historical median of 47.39. Over the past decade, NetX Holdings Bhd's Gross Margin % has ranged from 0.11 to 65.60. According to the industry distribution chart, NetX Holdings Bhd ranks #656 out of 2680 companies in the Software industry, placing it in the top 24.5%.
Is NetX Holdings Bhd's Gross Margin % too high?
NetX Holdings Bhd's current Gross Margin % of 89.33% is 88% above median its 10-year median of 47.39. Over the past 10 years, this metric has ranged from a low of 0.11 to a high of 65.60. The Software industry median Gross Margin % is 40.45. NetX Holdings Bhd's value of 89.33% is 120.8% above this industry median. Based on the distribution chart, NetX Holdings Bhd ranks #656 out of 2680 companies in the Software industry, which is in the top quartile — a strong position relative to peers.
How does NetX Holdings Bhd's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, NetX Holdings Bhd ranks #656 out of 2680 companies for Gross Margin %. This places NetX Holdings Bhd in the top 25% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. NetX Holdings Bhd's value of 89.33% is 120.8% above this benchmark. Historically, NetX Holdings Bhd's own Gross Margin % has ranged from 0.11 to 65.60 over the past decade. While the company's 10-year median is 47.39 vs. the industry median of 40.45, NetX Holdings 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 Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,680 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NetX Holdings Bhd's current Gross Margin % of 89.33% is 120.8% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on NetX Holdings Bhd and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetX Holdings Bhd's current Gross Margin % is 89.33%, which is 88% above median its own 10-year median of 47.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NetX Holdings Bhd stock overvalued right now?
Based on GuruFocus' analysis, NetX Holdings Bhd (XKLS:0020) is currently considered Modestly Overvalued. The stock's GF Value™ is RM0.05, compared to a current price of RM0.06 — trading 20% above its estimated fair value. The current Gross Margin % is 89.33%, which is 88% above median its 10-year median of 47.39 and 120.8% above the Software industry median of 40.45. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For NetX Holdings Bhd (XKLS:0020), the current Gross Margin % is 89.33% as of Feb. 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.
NetX Holdings Bhd is an investment holding company. The Group operates in five different business segments according to the nature of activities of its subsidiaries, namely Nonpayment & IT Network services, Electronic Payment services, GEM, Money Lending, and Property Investment. The majority of its revenue is from Electronic Payment services: Involved in the provision of payment terminal and payment solutions, money exchange services, and its related software licensing and services. Geographically, operates in Malaysia and Hong Kong.
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