Silver Ridge Holdings Bhd (XKLS:0129) 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
Silver Ridge Holdings Bhd had a gross margin of 20.58% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
Silver Ridge Holdings Bhd Gross Margin % Related Terms
Silver Ridge Holdings Bhd Gross Margin % Historical Data
* 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:0129 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Silver Ridge 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.
Silver Ridge Holdings Bhd Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Silver Ridge Holdings Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Silver Ridge 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.
Silver Ridge Holdings Bhd (XKLS:0129) has a Gross Margin % of 20.58% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Silver Ridge Holdings Bhd and its competitors. This is near median its historical median of 22.51. Over the past decade, Silver Ridge Holdings Bhd's Gross Margin % has ranged from 8.03 to 30.07. According to the industry distribution chart, Silver Ridge Holdings Bhd ranks #1276 out of 2453 companies in the Hardware industry, placing it in the top 52%.
Is Silver Ridge Holdings Bhd's Gross Margin % too high?
Silver Ridge Holdings Bhd's current Gross Margin % of 20.58% is near median its 10-year median of 22.51. Over the past 10 years, this metric has ranged from a low of 8.03 to a high of 30.07. The Hardware industry median Gross Margin % is 24.52. Silver Ridge Holdings Bhd's value of 20.58% is 16.1% below this industry median. Based on the distribution chart, Silver Ridge Holdings Bhd ranks #1276 out of 2453 companies in the Hardware industry, which is below the industry midpoint. Overall, Silver Ridge Holdings Bhd has a GF Score™ of 29/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Silver Ridge Holdings Bhd's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Silver Ridge Holdings Bhd ranks #1276 out of 2453 companies for Gross Margin %. This places Silver Ridge Holdings Bhd in the lower half of its industry. The industry median Gross Margin % is 24.52. Silver Ridge Holdings Bhd's value of 20.58% is 16.1% below this benchmark. Historically, Silver Ridge Holdings Bhd's own Gross Margin % has ranged from 8.03 to 30.07 over the past decade. While the company's 10-year median is 22.51 vs. the industry median of 24.52, Silver Ridge Holdings 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 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. Silver Ridge Holdings Bhd's current Gross Margin % of 20.58% is 16.1% 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 Silver Ridge Holdings 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. Silver Ridge Holdings Bhd's current Gross Margin % is 20.58%, which is near median its own 10-year median of 22.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Silver Ridge Holdings Bhd stock overvalued right now?
Based on GuruFocus' analysis, Silver Ridge Holdings Bhd (XKLS:0129) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.40, compared to a current price of RM0.21 — trading 47.5% below its estimated fair value. The current Gross Margin % is 20.58%, which is near median its 10-year median of 22.51 and 16.1% below the Hardware industry median of 24.52. Silver Ridge Holdings Bhd's overall GF Score™ is 29/100 with 10 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 Silver Ridge Holdings Bhd (XKLS:0129), the current Gross Margin % is 20.58% 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 Silver Ridge Holdings Bhd (XKLS:0129) Overvalued in 2026?
Based on GuruFocus' analysis, Silver Ridge Holdings Bhd stock appears to be undervalued.
The current stock price of RM0.21 is trading 47.5% below its estimated GF Value™ of RM0.40.
GuruFocus considers Silver Ridge Holdings Bhd to be Possible Value Trap.
Key valuation signals for XKLS:0129:
Gross Margin %: 20.58% (near median its 10-year median of 22.51)
GF Value™: RM0.40 vs. price of RM0.21 (47.5% below fair value)
Industry Position: 16.1% below the Hardware median (#1276 of 2453)
No single metric tells the full story. See the XKLS:0129 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Silver Ridge Holdings Bhd, along with its subsidiaries, mainly provides telecommunication infrastructure installation, testing, and management services. It has completed several turnkey projects and assisted local carriers in deploying epoch-defining data services across Peninsular Malaysia and Borneo. The group's service and product offerings include network monitoring systems, network devices, network security services, smart meters, CCTV, and video monitoring solutions etc. It has five reporting operating segments: Telecommunication solutions, Sub-construction (the maximum revenue-generating segment), Trading, Investment holdings, and Others. Geographically, the group derives maximum revenue from Malaysia, and the rest from India.
29GF Score
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