RTS Technology Holdings Bhd (XKLS:03039) 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
RTS Technology Holdings Bhd had a gross margin of 44.60% for the quarter that ended in Dec. 2025 => Durable 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.
RTS Technology Holdings Bhd Gross Margin % Related Terms
RTS Technology 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:03039 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, RTS Technology 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.
RTS Technology Holdings Bhd Gross Margin % vs Software Industry
For the Software industry and Technology sector, RTS Technology Holdings Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where RTS Technology 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.
RTS Technology Holdings Bhd (XKLS:03039) has a Gross Margin % of 44.60% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on RTS Technology Holdings Bhd and its competitors. This is 13% below median its historical median of 51.56. Over the past decade, RTS Technology Holdings Bhd's Gross Margin % has ranged from 31.14 to 73.47.
Is RTS Technology Holdings Bhd's Gross Margin % too high?
RTS Technology Holdings Bhd's current Gross Margin % of 44.60% is 13% below median its 10-year median of 51.56. Over the past 10 years, this metric has ranged from a low of 31.14 to a high of 73.47. The Software industry median Gross Margin % is 40.45. RTS Technology Holdings Bhd's value of 44.60% is 10.3% above this industry median. Overall, RTS Technology Holdings Bhd has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does RTS Technology Holdings Bhd's Gross Margin % compare to IBM and ACN?
RTS Technology Holdings Bhd's Gross Margin % of 44.60% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.45. RTS Technology Holdings Bhd's value of 44.60% is 10.3% above this benchmark. Historically, RTS Technology Holdings Bhd's own Gross Margin % has ranged from 31.14 to 73.47 over the past decade. While the company's 10-year median is 51.56 vs. the industry median of 40.45, RTS Technology 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 Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,680 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. RTS Technology Holdings Bhd's current Gross Margin % of 44.60% is 10.3% 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 RTS Technology Holdings Bhd and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RTS Technology Holdings Bhd's current Gross Margin % is 44.60%, which is 13% below median its own 10-year median of 51.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RTS Technology Holdings Bhd stock overvalued right now?
RTS Technology Holdings Bhd (XKLS:03039) has a current Gross Margin % of 44.60%. The stock's GF Value™ is RM0.30, compared to a current price of RM0.17 — trading 45% below its estimated fair value. The current Gross Margin % is 44.60%, which is 13% below median its 10-year median of 51.56 and 10.3% above the Software industry median of 40.45. RTS Technology Holdings Bhd's overall GF Score™ is 34/100 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 RTS Technology Holdings Bhd (XKLS:03039), the current Gross Margin % is 44.60% as of Dec. 2025. 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 RTS Technology Holdings Bhd (XKLS:03039) Overvalued in 2026?
Based on GuruFocus' analysis, RTS Technology Holdings Bhd stock appears to be undervalued.
The current stock price of RM0.17 is trading 45% below its estimated GF Value™ of RM0.30.
Key valuation signals for XKLS:03039:
Gross Margin %: 44.60% (13% below median its 10-year median of 51.56)
GF Value™: RM0.30 vs. price of RM0.17 (45% below fair value)
Industry Position: 10.3% above the Software median
No single metric tells the full story. See the XKLS:03039 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RTS Technology Holdings Bhd is a multi-disciplinary technology company committed to providing solutions to help optimize the operational efficiencies of toll collection operations. Along with its subsidiaries, the company operates in the following business segments; Service rendered which derives key revenue and includes design, engineering, and system integration of expressway toll collection system; and the Sale of software system and equipment-related services segment which represents the sale of goods and service rendered which is trading in nature and maintenance service for the expressway toll collection system. Geographically, it derives maximum revenue from its customers in Malaysia followed by Myanmar and Philippines.
34GF Score
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