YGL Convergence BhdXKLS:0086 +6.25% Gross Margin % is -3.21% as of Mar. 2026. The stock has 4 warning signs investors should review. Among 2,453 Hardware companies, YGL Convergence Bhd ranks worse than 83.2% on this metric.
The historical rank and industry rank for YGL Convergence Bhd's Gross Margin % or its related term are showing as below:
XKLS:0086'
s Gross Margin % Range Over the Past 10 Years
Min: -1.51 Med: 21.91 Max: 37.1
Current: 10.57
During the past 13 years, the highestGross Margin % of YGL Convergence Bhd was 37.10%. The lowest was -1.51%. And the median was 21.91%.
XKLS:0086's Gross Margin % is ranked worse than 83.2% of 2453
companies
in the Hardware industry
Industry Median: 24.52
vs XKLS:0086: 10.57
YGL Convergence Bhd had a gross margin of -3.21% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for YGL Convergence Bhd was 33.90% per year.
YGL Convergence Bhd (XKLS:0086) 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
YGL Convergence Bhd had a gross margin of -3.21% 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.
YGL Convergence Bhd Gross Margin % Related Terms
YGL Convergence Bhd Gross Margin % Historical Data
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The historical data trend for YGL Convergence 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:0086 vs SNX, ARW, AVT: Gross Margin % Comparison
For the Electronics & Computer Distribution subindustry, YGL Convergence 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.
YGL Convergence Bhd Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, YGL Convergence Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where YGL Convergence 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.
YGL Convergence Bhd (XKLS:0086) has a Gross Margin % of -3.21% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on YGL Convergence Bhd and its competitors. According to the industry distribution chart, YGL Convergence Bhd ranks #2041 out of 2453 companies in the Hardware industry, placing it in the top 83.2%.
Is YGL Convergence Bhd's Gross Margin % too high?
YGL Convergence Bhd's current Gross Margin % is -3.21%. Based on the distribution chart, YGL Convergence Bhd ranks #2041 out of 2453 companies in the Hardware industry, which is in the bottom quartile relative to peers.
How does YGL Convergence Bhd's Gross Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, YGL Convergence Bhd ranks #2041 out of 2453 companies for Gross Margin %. This places YGL Convergence Bhd in the lower half of its industry. The industry median Gross Margin % is 24.52. 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.52, based on 2,453 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 YGL Convergence Bhd and its competitors. For the Hardware industry, the median Gross Margin % is 24.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. YGL Convergence Bhd's current Gross Margin % is -3.21%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is YGL Convergence Bhd stock overvalued right now?
Based on GuruFocus' analysis, YGL Convergence Bhd (XKLS:0086) is currently considered Fairly Valued. The stock's GF Value™ is RM0.08, compared to a current price of RM0.09 — trading 6.3% above its estimated fair value. The current Gross Margin % is -3.21%. 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 YGL Convergence Bhd (XKLS:0086), the current Gross Margin % is -3.21% 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.
YGL Convergence Bhd is principally engaged in the marketing and distribution of computer software and hardware, and the provision of professional services. The Group's reportable segments include Software Implementation, which involves software installation, commissioning, support, and maintenance services and related activities; the Solar Panel Installation segment, which provides engineering, procurement, construction, and commissioning services in solar energy solutions and related services; and Investment Holding. The majority of the company's revenue is derived from software and panel installations. The company's geographical segments include Malaysia and Hong Kong, with Malaysia contributing the majority of its revenue.
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