Nestle Malaysia BhdXKLS:4707 -2.53%88 Gross Margin % is 31.87% as of Mar. 2026, which is 10% below its 10-year median of 35.24. GuruFocus rates XKLS:4707 with a GF Score™ of 88/100 and a GF Value™ of RM116.82 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,900 Consumer Packaged Goods companies, Nestle Malaysia Bhd ranks better than 59.68% on this metric.
Nestle Malaysia Bhd gross margin has been in long-term decline. The average rate of decline per year is -3.5%.
The historical rank and industry rank for Nestle Malaysia Bhd's Gross Margin % or its related term are showing as below:
XKLS:4707'
s Gross Margin % Range Over the Past 10 Years
Min: 30.28 Med: 35.24 Max: 39.45
Current: 30.61
During the past 13 years, the highestGross Margin % of Nestle Malaysia Bhd was 39.45%. The lowest was 30.28%. And the median was 35.24%.
XKLS:4707's Gross Margin % is ranked better than 59.68% of 1900
companies
in the Consumer Packaged Goods industry
Industry Median: 26.37
vs XKLS:4707: 30.61
Nestle Malaysia Bhd had a gross margin of 31.87% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Nestle Malaysia Bhd was -3.50% per year.
Nestle Malaysia Bhd (XKLS:4707) 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
Nestle Malaysia Bhd had a gross margin of 31.87% 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.
Nestle Malaysia Bhd Gross Margin % Related Terms
Nestle Malaysia Bhd Gross Margin % Historical Data
* Premium members only.
The historical data trend for Nestle Malaysia 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.
For the Packaged Foods subindustry, Nestle Malaysia 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.
Nestle Malaysia Bhd Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle Malaysia Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nestle Malaysia 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.
Nestle Malaysia Bhd (XKLS:4707) has a Gross Margin % of 31.87% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nestle Malaysia Bhd and its competitors. This is 10% below median its historical median of 35.24. Over the past decade, Nestle Malaysia Bhd's Gross Margin % has ranged from 30.28 to 39.45. According to the industry distribution chart, Nestle Malaysia Bhd ranks #766 out of 1900 companies in the Consumer Packaged Goods industry, placing it in the top 40.3%.
Is Nestle Malaysia Bhd's Gross Margin % too high?
Nestle Malaysia Bhd's current Gross Margin % of 31.87% is 10% below median its 10-year median of 35.24. Over the past 10 years, this metric has ranged from a low of 30.28 to a high of 39.45. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Nestle Malaysia Bhd's value of 31.87% is 20.9% above this industry median. Based on the distribution chart, Nestle Malaysia Bhd ranks #766 out of 1900 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Nestle Malaysia Bhd has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nestle Malaysia Bhd's Gross Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Nestle Malaysia Bhd ranks #766 out of 1900 companies for Gross Margin %. This puts Nestle Malaysia Bhd in the upper half of its industry. The industry median Gross Margin % is 26.37. Nestle Malaysia Bhd's value of 31.87% is 20.9% above this benchmark. Historically, Nestle Malaysia Bhd's own Gross Margin % has ranged from 30.28 to 39.45 over the past decade. While the company's 10-year median is 35.24 vs. the industry median of 26.37, Nestle Malaysia 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 Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,900 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. Nestle Malaysia Bhd's current Gross Margin % of 31.87% is 20.9% 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 Nestle Malaysia Bhd and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nestle Malaysia Bhd's current Gross Margin % is 31.87%, which is 10% below median its own 10-year median of 35.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nestle Malaysia Bhd stock overvalued right now?
Based on GuruFocus' analysis, Nestle Malaysia Bhd (XKLS:4707) is currently considered Modestly Undervalued. The stock's GF Value™ is RM116.82, compared to a current price of RM93.42 — trading 20% below its estimated fair value. The current Gross Margin % is 31.87%, which is 10% below median its 10-year median of 35.24 and 20.9% above the Consumer Packaged Goods industry median of 26.37. Nestle Malaysia Bhd's overall GF Score™ is 88/100 with 4 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 Nestle Malaysia Bhd (XKLS:4707), the current Gross Margin % is 31.87% 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 Nestle Malaysia Bhd (XKLS:4707) Overvalued in 2026?
Based on GuruFocus' analysis, Nestle Malaysia Bhd stock appears to be undervalued.
The current stock price of RM93.42 is trading 20% below its estimated GF Value™ of RM116.82.
GuruFocus considers Nestle Malaysia Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:4707:
Gross Margin %: 31.87% (10% below median its 10-year median of 35.24)
GF Value™: RM116.82 vs. price of RM93.42 (20% below fair value)
Industry Position: 20.9% above the Consumer Packaged Goods median (#766 of 1900)
No single metric tells the full story. See the XKLS:4707 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nestle Malaysia Bhd is a Malaysian investment holding company owned by Nestle. The business activities of the group are functioned through Food and beverages and Others segments which include Nutrition, Nestle Professional, Nestle Health Science and NESPRESSO. The Food and Beverages segment derives maximum revenue. The products offered by the group are related to dairy, beverages, food, Nestle Professional, Nestle Ice Cream, confectionery, chilled dairy, infant nutrition, and health science. The main geography is the domestic market, representing approximately maximum of total sales. The known brands are Nescafe, Maggi, Nespray, Kit Kat, and Milo.
88GF Score
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