ICT Zone Asia BhdXKLS:0358 +5.26%63 Gross Margin % is 18.68% as of Jan. 2026, which is 15% below its 10-year median of 21.92. GuruFocus rates XKLS:0358 with a GF Score™ of 63/100 and a GF Value™ of RM0.37 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,681 Software companies, ICT Zone Asia Bhd ranks worse than 80.53% on this metric.
ICT Zone Asia Bhd gross margin has been in long-term decline. The average rate of decline per year is -3.9%.
The historical rank and industry rank for ICT Zone Asia Bhd's Gross Margin % or its related term are showing as below:
XKLS:0358'
s Gross Margin % Range Over the Past 10 Years
Min: 17.26 Med: 21.92 Max: 24.68
Current: 19.2
During the past 7 years, the highestGross Margin % of ICT Zone Asia Bhd was 24.68%. The lowest was 17.26%. And the median was 21.92%.
XKLS:0358's Gross Margin % is ranked worse than 80.53% of 2681
companies
in the Software industry
Industry Median: 40.41
vs XKLS:0358: 19.20
ICT Zone Asia Bhd had a gross margin of 18.68% for the quarter that ended in Jan. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for ICT Zone Asia Bhd was -3.90% per year.
ICT Zone Asia Bhd (XKLS:0358) 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
ICT Zone Asia Bhd had a gross margin of 18.68% for the quarter that ended in Jan. 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.
ICT Zone Asia Bhd Gross Margin % Related Terms
ICT Zone Asia Bhd Gross Margin % Historical Data
* Premium members only.
The historical data trend for ICT Zone Asia 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:0358 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, ICT Zone Asia 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.
ICT Zone Asia Bhd Gross Margin % vs Software Industry
For the Software industry and Technology sector, ICT Zone Asia Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ICT Zone Asia 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.
ICT Zone Asia Bhd (XKLS:0358) has a Gross Margin % of 18.68% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on ICT Zone Asia Bhd and its competitors. This is 15% below median its historical median of 21.92. Over the past decade, ICT Zone Asia Bhd's Gross Margin % has ranged from 17.26 to 24.68. According to the industry distribution chart, ICT Zone Asia Bhd ranks #2159 out of 2681 companies in the Software industry, placing it in the top 80.5%.
Is ICT Zone Asia Bhd's Gross Margin % too high?
ICT Zone Asia Bhd's current Gross Margin % of 18.68% is 15% below median its 10-year median of 21.92. Over the past 10 years, this metric has ranged from a low of 17.26 to a high of 24.68. The Software industry median Gross Margin % is 40.41. ICT Zone Asia Bhd's value of 18.68% is 53.8% below this industry median. Based on the distribution chart, ICT Zone Asia Bhd ranks #2159 out of 2681 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, ICT Zone Asia Bhd has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does ICT Zone Asia Bhd's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, ICT Zone Asia Bhd ranks #2159 out of 2681 companies for Gross Margin %. This places ICT Zone Asia Bhd in the lower half of its industry. The industry median Gross Margin % is 40.41. ICT Zone Asia Bhd's value of 18.68% is 53.8% below this benchmark. Historically, ICT Zone Asia Bhd's own Gross Margin % has ranged from 17.26 to 24.68 over the past decade. While the company's 10-year median is 21.92 vs. the industry median of 40.41, ICT Zone Asia 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. ICT Zone Asia Bhd's current Gross Margin % of 18.68% is 53.8% 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 ICT Zone Asia 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. ICT Zone Asia Bhd's current Gross Margin % is 18.68%, which is 15% below median its own 10-year median of 21.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ICT Zone Asia Bhd stock overvalued right now?
Based on GuruFocus' analysis, ICT Zone Asia Bhd (XKLS:0358) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.37, compared to a current price of RM0.20 — trading 45.9% below its estimated fair value. The current Gross Margin % is 18.68%, which is 15% below median its 10-year median of 21.92 and 53.8% below the Software industry median of 40.41. ICT Zone Asia Bhd's overall GF Score™ is 63/100 with 6 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 ICT Zone Asia Bhd (XKLS:0358), the current Gross Margin % is 18.68% as of Jan. 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 ICT Zone Asia Bhd (XKLS:0358) Overvalued in 2026?
Based on GuruFocus' analysis, ICT Zone Asia Bhd stock appears to be undervalued.
The current stock price of RM0.20 is trading 45.9% below its estimated GF Value™ of RM0.37.
GuruFocus considers ICT Zone Asia Bhd to be Possible Value Trap.
Key valuation signals for XKLS:0358:
Gross Margin %: 18.68% (15% below median its 10-year median of 21.92)
GF Value™: RM0.37 vs. price of RM0.20 (45.9% below fair value)
Industry Position: 53.8% below the Software median (#2159 of 2681)
No single metric tells the full story. See the XKLS:0358 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ICT Zone Asia Bhd is an investment holding company. Along with its subsidiaries, it operates in the following business segments: the Technology financing segment, which involves operating leases of ICT hardware and software; the Trading of ICT hardware and software segment includes outright sales of ICT hardware and software and disposal of ICT assets; Provision of ICT services segment is involved in providing corrective and preventative ICT maintenance services; Provision of cloud solution and services segment offers customised cloud services with architecture solution and outright sales of ICT hardware and software for cloud solution; and Others. Maximum revenue for the group is generated from the Technology financing segment. Geographically, it generates maximum revenue from Malaysia.
63GF Score
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