LGMS BhdXKLS:0249 -1.09%77 Gross Margin % is 36.74% as of Mar. 2026, which is 40% below its 10-year median of 61.73. GuruFocus rates XKLS:0249 with a GF Score™ of 77/100 and a GF Value™ of RM1.29 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,681 Software companies, LGMS Bhd ranks better than 50.21% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. LGMS Bhd's Gross Profit for the
three
months ended in Mar. 2026 was RM3.99 Mil. LGMS Bhd's Revenue for the
three
months ended in Mar. 2026 was RM10.86 Mil. Therefore, LGMS Bhd's Gross Margin % for the quarter that ended in Mar. 2026 was 36.74%.
Warning Sign:
LGMS Bhd gross margin has been in long-term decline. The average rate of decline per year is -9.7%.
The historical rank and industry rank for LGMS Bhd's Gross Margin % or its related term are showing as below:
XKLS:0249'
s Gross Margin % Range Over the Past 10 Years
Min: 40.51 Med: 61.73 Max: 65.64
Current: 40.51
During the past 8 years, the highestGross Margin % of LGMS Bhd was 65.64%. The lowest was 40.51%. And the median was 61.73%.
XKLS:0249's Gross Margin % is ranked better than 50.21% of 2681
companies
in the Software industry
Industry Median: 40.41
vs XKLS:0249: 40.51
LGMS Bhd had a gross margin of 36.74% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for LGMS Bhd was -9.70% per year.
LGMS Bhd (XKLS:0249) 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
LGMS Bhd had a gross margin of 36.74% 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.
LGMS Bhd Gross Margin % Related Terms
LGMS Bhd Gross Margin % Historical Data
* Premium members only.
The historical data trend for LGMS 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:0249 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, LGMS 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.
LGMS Bhd Gross Margin % vs Software Industry
For the Software industry and Technology sector, LGMS Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where LGMS 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.
LGMS Bhd (XKLS:0249) has a Gross Margin % of 36.74% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on LGMS Bhd and its competitors. This is 40% below median its historical median of 61.73. Over the past decade, LGMS Bhd's Gross Margin % has ranged from 40.51 to 65.64. According to the industry distribution chart, LGMS Bhd ranks #1335 out of 2681 companies in the Software industry, placing it in the top 49.8%.
Is LGMS Bhd's Gross Margin % too high?
LGMS Bhd's current Gross Margin % of 36.74% is 40% below median its 10-year median of 61.73. Over the past 10 years, this metric has ranged from a low of 40.51 to a high of 65.64. The Software industry median Gross Margin % is 40.41. LGMS Bhd's value of 36.74% is 9.1% below this industry median. Based on the distribution chart, LGMS Bhd ranks #1335 out of 2681 companies in the Software industry, which is above the industry midpoint. Overall, LGMS Bhd has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LGMS Bhd's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, LGMS Bhd ranks #1335 out of 2681 companies for Gross Margin %. This puts LGMS Bhd in the upper half of its industry. The industry median Gross Margin % is 40.41. LGMS Bhd's value of 36.74% is 9.1% below this benchmark. Historically, LGMS Bhd's own Gross Margin % has ranged from 40.51 to 65.64 over the past decade. While the company's 10-year median is 61.73 vs. the industry median of 40.41, LGMS 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 40.41, based on 2,681 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. LGMS Bhd's current Gross Margin % of 36.74% is 9.1% 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 LGMS Bhd and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LGMS Bhd's current Gross Margin % is 36.74%, which is 40% below median its own 10-year median of 61.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LGMS Bhd stock overvalued right now?
Based on GuruFocus' analysis, LGMS Bhd (XKLS:0249) is currently considered Significantly Undervalued. The stock's GF Value™ is RM1.29, compared to a current price of RM0.46 — trading 64.7% below its estimated fair value. The current Gross Margin % is 36.74%, which is 40% below median its 10-year median of 61.73 and 9.1% below the Software industry median of 40.41. LGMS Bhd's overall GF Score™ is 77/100 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 LGMS Bhd (XKLS:0249), the current Gross Margin % is 36.74% 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 LGMS Bhd (XKLS:0249) Overvalued in 2026?
Based on GuruFocus' analysis, LGMS Bhd stock appears to be undervalued.
The current stock price of RM0.46 is trading 64.7% below its estimated GF Value™ of RM1.29.
GuruFocus considers LGMS Bhd to be Significantly Undervalued.
Key valuation signals for XKLS:0249:
Gross Margin %: 36.74% (40% below median its 10-year median of 61.73)
GF Value™: RM1.29 vs. price of RM0.46 (64.7% below fair value)
Industry Position: 9.1% below the Software median (#1335 of 2681)
No single metric tells the full story. See the XKLS:0249 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LGMS Bhd is an independent provider of professional cybersecurity services involved in cybersecurity assessment and penetration testing, cyber security management and compliance services as well as digital forensics. The company has three segments Cyber risk prevention Involved in the provision of security vulnerability assessment and penetration testing, training, and risk scoring; Cyber risk management and compliance Involved in the provision of cybersecurity advisory, certification, and compliance services; and Cyber threat and incident response Involved in the provision of digital forensics and computer crime investigations, cybersecurity incident response and compromise assessment. It generates revenue from Cyber risk prevention.
77GF Score
Get the complete analysis for XKLS:0249
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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