HPP Holdings BhdXKLS:0228 -1.72%54 Gross Margin % is 21.88% as of Feb. 2026, which is 11% below its 10-year median of 24.46. GuruFocus rates XKLS:0228 with a GF Score™ of 54/100 and a GF Value™ of RM0.42 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 382 Packaging & Containers companies, HPP Holdings Bhd ranks better than 57.59% on this metric.
HPP Holdings Bhd gross margin has been in long-term decline. The average rate of decline per year is -4.5%.
The historical rank and industry rank for HPP Holdings Bhd's Gross Margin % or its related term are showing as below:
XKLS:0228'
s Gross Margin % Range Over the Past 10 Years
Min: 17.9 Med: 24.46 Max: 34.73
Current: 24.36
During the past 8 years, the highestGross Margin % of HPP Holdings Bhd was 34.73%. The lowest was 17.90%. And the median was 24.46%.
XKLS:0228's Gross Margin % is ranked better than 57.59% of 382
companies
in the Packaging & Containers industry
Industry Median: 21.38
vs XKLS:0228: 24.36
HPP Holdings Bhd had a gross margin of 21.88% for the quarter that ended in Feb. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for HPP Holdings Bhd was -4.50% per year.
HPP Holdings Bhd (XKLS:0228) 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
HPP Holdings Bhd had a gross margin of 21.88% for the quarter that ended in Feb. 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.
HPP Holdings Bhd Gross Margin % Related Terms
HPP Holdings Bhd Gross Margin % Historical Data
* Premium members only.
The historical data trend for HPP Holdings 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:0228 vs SW, PKG, IP: Gross Margin % Comparison
For the Packaging & Containers subindustry, HPP 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.
HPP Holdings Bhd Gross Margin % vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, HPP Holdings Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where HPP 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.
HPP Holdings Bhd (XKLS:0228) has a Gross Margin % of 21.88% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on HPP Holdings Bhd and its competitors. This is 11% below median its historical median of 24.46. Over the past decade, HPP Holdings Bhd's Gross Margin % has ranged from 17.90 to 34.73. According to the industry distribution chart, HPP Holdings Bhd ranks #162 out of 382 companies in the Packaging & Containers industry, placing it in the top 42.4%.
Is HPP Holdings Bhd's Gross Margin % too high?
HPP Holdings Bhd's current Gross Margin % of 21.88% is 11% below median its 10-year median of 24.46. Over the past 10 years, this metric has ranged from a low of 17.90 to a high of 34.73. The Packaging & Containers industry median Gross Margin % is 21.38. HPP Holdings Bhd's value of 21.88% is 2.3% above this industry median. Based on the distribution chart, HPP Holdings Bhd ranks #162 out of 382 companies in the Packaging & Containers industry, which is above the industry midpoint. Overall, HPP Holdings Bhd has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does HPP Holdings Bhd's Gross Margin % compare to SW and PKG?
According to the Packaging & Containers industry distribution chart, HPP Holdings Bhd ranks #162 out of 382 companies for Gross Margin %. This puts HPP Holdings Bhd in the upper half of its industry. The industry median Gross Margin % is 21.38. HPP Holdings Bhd's value of 21.88% is 2.3% above this benchmark. Historically, HPP Holdings Bhd's own Gross Margin % has ranged from 17.90 to 34.73 over the past decade. While the company's 10-year median is 24.46 vs. the industry median of 21.38, HPP Holdings Bhd has consistently been above 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 Packaging & Containers company?
The median Gross Margin % among Packaging & Containers companies is 21.38, based on 382 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. HPP Holdings Bhd's current Gross Margin % of 21.88% is 2.3% above 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 HPP Holdings Bhd and its competitors. For the Packaging & Containers industry, the median Gross Margin % is 21.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HPP Holdings Bhd's current Gross Margin % is 21.88%, which is 11% below median its own 10-year median of 24.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HPP Holdings Bhd stock overvalued right now?
Based on GuruFocus' analysis, HPP Holdings Bhd (XKLS:0228) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.42, compared to a current price of RM0.29 — trading 32.1% below its estimated fair value. The current Gross Margin % is 21.88%, which is 11% below median its 10-year median of 24.46 and 2.3% above the Packaging & Containers industry median of 21.38. HPP Holdings Bhd's overall GF Score™ is 54/100 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 HPP Holdings Bhd (XKLS:0228), the current Gross Margin % is 21.88% 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 HPP Holdings Bhd (XKLS:0228) Overvalued in 2026?
Based on GuruFocus' analysis, HPP Holdings Bhd stock appears to be undervalued.
The current stock price of RM0.29 is trading 32.1% below its estimated GF Value™ of RM0.42.
GuruFocus considers HPP Holdings Bhd to be Possible Value Trap.
Key valuation signals for XKLS:0228:
Gross Margin %: 21.88% (11% below median its 10-year median of 24.46)
GF Value™: RM0.42 vs. price of RM0.29 (32.1% below fair value)
Industry Position: 2.3% above the Packaging & Containers median (#162 of 382)
No single metric tells the full story. See the XKLS:0228 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HPP Holdings Bhd is an investment holding company principally engaged in printing, production, sales, and marketing of paper-based packaging. Its product range includes corrugated and non-corrugated packaging, paper pulp molded packaging, rigid boxes, as well as brochures, leaflets, labels, and paper bags. The company operates in multiple countries, including Malaysia, Thailand, the United States, Singapore, and Taiwan. It serves markets such as consumer electronics, pharmaceuticals, food and beverage, and household products. HPP generates revenue prominently through the sale and provision of packaging solutions.
54GF Score
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