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REDtone Digital Bhd gross margin has been in long-term decline. The average rate of decline per year is -5.9%.
The historical rank and industry rank for REDtone Digital Bhd's Gross Margin % or its related term are showing as below:
During the past 13 years, the highestGross Margin % of REDtone Digital Bhd was 62.56%. The lowest was 28.19%. And the median was 43.68%.
XKLS:0032's Gross Margin % is not ranked *
in the Telecommunication Services industry.
Industry Median: 51.87 * Ranked among companies with meaningful Gross Margin % only.
REDtone Digital Bhd had a gross margin of N/A% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for REDtone Digital Bhd was -5.90% per year.
REDtone Digital Bhd (XKLS:0032) 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
REDtone Digital Bhd had a gross margin of N/A% for the quarter that ended in Mar. 2026 => No sustainable 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.
REDtone Digital Bhd Gross Margin % Related Terms
REDtone Digital Bhd Gross Margin % Historical Data
* Premium members only.
The historical data trend for REDtone Digital 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:0032 vs VZ, TMUS, T: Gross Margin % Comparison
For the Telecom Services subindustry, REDtone Digital 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.
REDtone Digital Bhd Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, REDtone Digital Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where REDtone Digital 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.
REDtone Digital Bhd (XKLS:0032) has a Gross Margin % of 0.00% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on REDtone Digital Bhd and its competitors. Over the past decade, REDtone Digital Bhd's Gross Margin % has ranged from 28.19 to 62.56. According to the industry distribution chart, REDtone Digital Bhd ranks #999999 out of 341 companies in the Telecommunication Services industry.
Is REDtone Digital Bhd's Gross Margin % too high?
REDtone Digital Bhd's current Gross Margin % is 0.00%. Over the past 10 years, this metric has ranged from a low of 28.19 to a high of 62.56. Based on the distribution chart, REDtone Digital Bhd ranks #999999 out of 341 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, REDtone Digital Bhd has a GF Score™ of 49/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does REDtone Digital Bhd's Gross Margin % compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, REDtone Digital Bhd ranks #999999 out of 341 companies for Gross Margin %. This places REDtone Digital Bhd in the lower half of its industry. The industry median Gross Margin % is 51.87. Historically, REDtone Digital Bhd's own Gross Margin % has ranged from 28.19 to 62.56 over the past decade. 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 Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.87, based on 341 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. 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 REDtone Digital Bhd and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REDtone Digital Bhd's current Gross Margin % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REDtone Digital Bhd stock overvalued right now?
Based on GuruFocus' analysis, REDtone Digital Bhd (XKLS:0032) is currently considered Significantly Undervalued. The stock's GF Value™ is RM0.84, compared to a current price of RM0.32 — trading 62.5% below its estimated fair value. The current Gross Margin % is 0.00%. REDtone Digital Bhd's overall GF Score™ is 49/100 with 8 warning signs to review. 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 REDtone Digital Bhd (XKLS:0032), the current Gross Margin % is 0.00% 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 REDtone Digital Bhd (XKLS:0032) Overvalued in 2026?
Based on GuruFocus' analysis, REDtone Digital Bhd stock appears to be undervalued.
The current stock price of RM0.32 is trading 62.5% below its estimated GF Value™ of RM0.84.
GuruFocus considers REDtone Digital Bhd to be Significantly Undervalued.
Key valuation signals for XKLS:0032:
Gross Margin %: 0.00%
GF Value™: RM0.84 vs. price of RM0.32 (62.5% below fair value)
No single metric tells the full story. See the XKLS:0032 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
REDtone Digital Bhd is a digital infrastructure and services provider operating through three segments: Telecommunication Services, offering data, managed network services, Cloud PBX, SIP Trunking, managed cybersecurity, and Starlink satellite connectivity; Managed Telecommunications Network Services, strengthening Malaysia's digital infrastructure in underserved and rural areas, supporting initiatives like Kampung Tanpa Wayar, Time-3, and JENDELA; and Cloud, Artificial Intelligence, and Internet of Things, providing cloud-first, AI-powered, and IoT-enabled solutions including AI Agents, smart farming, and SaaS CRM platforms. The company generates majority of its revenue from the Managed Telecommunications Network Services segment and operates in Malaysia.
49GF Score
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