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Systech BhdXKLS:0050 -2.78%60 Gross Margin % is 3.92% as of Mar. 2026, which is 91% below its 10-year median of 43.02. GuruFocus rates XKLS:0050 with a GF Score™ of 60/100 and a GF Value™ of RM1.88 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,685 Software companies, Systech Bhd ranks worse than 93.37% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Systech Bhd's Gross Profit for the
three
months ended in Mar. 2026 was RM10.8 Mil. Systech Bhd's Revenue for the
three
months ended in Mar. 2026 was RM274.6 Mil. Therefore, Systech Bhd's Gross Margin % for the quarter that ended in Mar. 2026 was 3.92%.
Warning Sign:
Systech Bhd gross margin has been in long-term decline. The average rate of decline per year is -26.5%.
The historical rank and industry rank for Systech Bhd's Gross Margin % or its related term are showing as below:
XKLS:0050'
s Gross Margin % Range Over the Past 10 Years
Min: 6.99 Med: 43.02 Max: 65.79
Current: 7.45
During the past 13 years, the highestGross Margin % of Systech Bhd was 65.79%. The lowest was 6.99%. And the median was 43.02%.
XKLS:0050's Gross Margin % is ranked worse than 93.37% of 2685
companies
in the Software industry
Industry Median: 40.49
vs XKLS:0050: 7.45
Systech Bhd had a gross margin of 3.92% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Systech Bhd was -26.50% per year.
Systech Bhd (XKLS:0050) 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
Systech Bhd had a gross margin of 3.92% 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.
Systech Bhd Gross Margin % Related Terms
Systech Bhd Gross Margin % Historical Data
* Premium members only.
The historical data trend for Systech 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:0050 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Systech 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.
Systech Bhd Gross Margin % vs Software Industry
For the Software industry and Technology sector, Systech Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Systech 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.
Systech Bhd (XKLS:0050) has a Gross Margin % of 3.92% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Systech Bhd and its competitors. This is 91% below median its historical median of 43.02. Over the past decade, Systech Bhd's Gross Margin % has ranged from 6.99 to 65.79. According to the industry distribution chart, Systech Bhd ranks #2507 out of 2685 companies in the Software industry, placing it in the top 93.4%.
Is Systech Bhd's Gross Margin % too high?
Systech Bhd's current Gross Margin % of 3.92% is 91% below median its 10-year median of 43.02. Over the past 10 years, this metric has ranged from a low of 6.99 to a high of 65.79. The Software industry median Gross Margin % is 40.49. Systech Bhd's value of 3.92% is 90.3% below this industry median. Based on the distribution chart, Systech Bhd ranks #2507 out of 2685 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Systech Bhd has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Systech Bhd's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Systech Bhd ranks #2507 out of 2685 companies for Gross Margin %. This places Systech Bhd in the lower half of its industry. The industry median Gross Margin % is 40.49. Systech Bhd's value of 3.92% is 90.3% below this benchmark. Historically, Systech Bhd's own Gross Margin % has ranged from 6.99 to 65.79 over the past decade. While the company's 10-year median is 43.02 vs. the industry median of 40.49, Systech Bhd has consistently been below 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 40.49, based on 2,685 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. Systech Bhd's current Gross Margin % of 3.92% is 90.3% below 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 Systech Bhd and its competitors. For the Software industry, the median Gross Margin % is 40.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Systech Bhd's current Gross Margin % is 3.92%, which is 91% below median its own 10-year median of 43.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Systech Bhd stock overvalued right now?
Based on GuruFocus' analysis, Systech Bhd (XKLS:0050) is currently considered Possible Value Trap. The stock's GF Value™ is RM1.88, compared to a current price of RM0.18 — trading 90.7% below its estimated fair value. The current Gross Margin % is 3.92%, which is 91% below median its 10-year median of 43.02 and 90.3% below the Software industry median of 40.49. Systech Bhd's overall GF Score™ is 60/100 with 3 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 Systech Bhd (XKLS:0050), the current Gross Margin % is 3.92% 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 Systech Bhd (XKLS:0050) Overvalued in 2026?
Based on GuruFocus' analysis, Systech Bhd stock appears to be undervalued.
The current stock price of RM0.18 is trading 90.7% below its estimated GF Value™ of RM1.88.
GuruFocus considers Systech Bhd to be Possible Value Trap.
Key valuation signals for XKLS:0050:
Gross Margin %: 3.92% (91% below median its 10-year median of 43.02)
GF Value™: RM1.88 vs. price of RM0.18 (90.7% below fair value)
Industry Position: 90.3% below the Software median (#2507 of 2685)
No single metric tells the full story. See the XKLS:0050 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AddressNo. 8, Jalan Kerinchi, Avenue 3, Suite B-01-08, Level 1, Tower B Vertical Business Suite, The Vertical, Bangsar South City, Kuala Lumpur, MYS, 59200
Systech Bhd is a Malaysia-based investment holding company. The company carries out its operations through the business divisions of Corporate Solutions, e-Business solutions, Cyber security solutions and e-Logistics solutions. The e-Business solutions provide end-to-end solutions for e-Business needs. The Cybersecurity solution involves providing information security services that protect organizations against cyberattacks. The e-Logistics solutions undertake annual reports and publication mailing in Singapore. Corporate Solutions providing digital transformation and automation via Artificial Intelligence and Enterprise Resources Planning, Internet of Things and Human Capital Management Solutions.
60GF Score
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