Aco Group BhdXKLS:0218 45 Gross Margin % is 17.93% as of Feb. 2026, which is 13% above its 10-year median of 15.89. GuruFocus rates XKLS:0218 with a GF Score™ of 45/100 and a GF Value™ of RM0.21 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 2,454 Hardware companies, Aco Group Bhd ranks worse than 72.86% on this metric.
Aco Group Bhd gross margin has been in long-term decline. The average rate of decline per year is -1.3%.
The historical rank and industry rank for Aco Group Bhd's Gross Margin % or its related term are showing as below:
XKLS:0218'
s Gross Margin % Range Over the Past 10 Years
Min: 13.93 Med: 15.89 Max: 19.34
Current: 15.43
During the past 10 years, the highestGross Margin % of Aco Group Bhd was 19.34%. The lowest was 13.93%. And the median was 15.89%.
XKLS:0218's Gross Margin % is ranked worse than 72.86% of 2454
companies
in the Hardware industry
Industry Median: 24.565
vs XKLS:0218: 15.43
Aco Group Bhd had a gross margin of 17.93% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Aco Group Bhd was -1.30% per year.
Aco Group Bhd (XKLS:0218) 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
Aco Group Bhd had a gross margin of 17.93% for the quarter that ended in Feb. 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.
Aco Group Bhd Gross Margin % Related Terms
Aco Group Bhd Gross Margin % Historical Data
* Premium members only.
The historical data trend for Aco Group 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:0218 vs SNX, ARW, AVT: Gross Margin % Comparison
For the Electronics & Computer Distribution subindustry, Aco Group 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.
Aco Group Bhd Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Aco Group Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Aco Group 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.
Aco Group Bhd (XKLS:0218) has a Gross Margin % of 17.93% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Aco Group Bhd and its competitors. This is 13% above median its historical median of 15.89. Over the past decade, Aco Group Bhd's Gross Margin % has ranged from 13.93 to 19.34. According to the industry distribution chart, Aco Group Bhd ranks #1788 out of 2454 companies in the Hardware industry, placing it in the top 72.9%.
Is Aco Group Bhd's Gross Margin % too high?
Aco Group Bhd's current Gross Margin % of 17.93% is 13% above median its 10-year median of 15.89. Over the past 10 years, this metric has ranged from a low of 13.93 to a high of 19.34. The Hardware industry median Gross Margin % is 24.57. Aco Group Bhd's value of 17.93% is 27% below this industry median. Based on the distribution chart, Aco Group Bhd ranks #1788 out of 2454 companies in the Hardware industry, which is below the industry midpoint. Overall, Aco Group Bhd has a GF Score™ of 45/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aco Group Bhd's Gross Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, Aco Group Bhd ranks #1788 out of 2454 companies for Gross Margin %. This places Aco Group Bhd in the lower half of its industry. The industry median Gross Margin % is 24.57. Aco Group Bhd's value of 17.93% is 27% below this benchmark. Historically, Aco Group Bhd's own Gross Margin % has ranged from 13.93 to 19.34 over the past decade. While the company's 10-year median is 15.89 vs. the industry median of 24.57, Aco Group 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 24.57, based on 2,454 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. Aco Group Bhd's current Gross Margin % of 17.93% is 27% 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 Aco Group Bhd and its competitors. For the Hardware industry, the median Gross Margin % is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aco Group Bhd's current Gross Margin % is 17.93%, which is 13% above median its own 10-year median of 15.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aco Group Bhd stock overvalued right now?
Based on GuruFocus' analysis, Aco Group Bhd (XKLS:0218) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.21, compared to a current price of RM0.16 — trading 23.8% below its estimated fair value. The current Gross Margin % is 17.93%, which is 13% above median its 10-year median of 15.89 and 27% below the Hardware industry median of 24.57. Aco Group Bhd's overall GF Score™ is 45/100 with 5 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 Aco Group Bhd (XKLS:0218), the current Gross Margin % is 17.93% 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.
Is Aco Group Bhd (XKLS:0218) Overvalued in 2026?
Based on GuruFocus' analysis, Aco Group Bhd stock appears to be undervalued.
The current stock price of RM0.16 is trading 23.8% below its estimated GF Value™ of RM0.21.
GuruFocus considers Aco Group Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:0218:
Gross Margin %: 17.93% (13% above median its 10-year median of 15.89)
GF Value™: RM0.21 vs. price of RM0.16 (23.8% below fair value)
Industry Position: 27% below the Hardware median (#1788 of 2454)
No single metric tells the full story. See the XKLS:0218 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aco Group Bhd is an investment holding company. Along with its subsidiaries, it is involved in management consultancy activities, distribution of electrical products and accessories, wholesale of household appliances, and trading of electronic, electrical goods, lighting, and lighting accessories. Its product portfolio comprises communication cables and wires, fans and air-conditioners, water heaters, switches and power outlets, and others. The group's reportable operating segments are as follows: Industrial users and Resellers. Maximum revenue is generated from the Industrial users segment, which represents sales of electrical products and accessories to electrical contractors, electrical products manufacturers, and others. Geographically, the group operates mainly in Malaysia.
45GF Score
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