Gross Margin % is calculated as gross profit divided by its revenue. Varia Bhd's Gross Profit for the
three
months ended in Jun. 2024 was RM9.6 Mil. Varia Bhd's Revenue for the
three
months ended in Jun. 2024 was RM84.9 Mil. Therefore, Varia Bhd's Gross Margin % for the quarter that ended in Jun. 2024 was 11.29%.
The historical rank and industry rank for Varia Bhd's Gross Margin % or its related term are showing as below:
XKLS:5006's Gross Margin % is not ranked *
in the Construction industry.
Industry Median: 20.72 * Ranked among companies with meaningful Gross Margin % only.
Varia Bhd had a gross margin of 11.29% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Varia Bhd was 0.00% per year.
Varia Bhd (XKLS:5006) 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
Varia Bhd had a gross margin of 11.29% for the quarter that ended in Jun. 2024 => 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.
Varia Bhd Gross Margin % Related Terms
Varia Bhd Gross Margin % Historical Data
* Premium members only.
The historical data trend for Varia 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 Engineering & Construction subindustry, Varia 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.
Varia Bhd Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Varia Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Varia 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.
Varia Bhd (XKLS:5006) has a Gross Margin % of 11.29% as of Jun. 2024. Gross margin is the ratio of total gross profit to net sales. View historical data on Varia Bhd and its competitors.
Is Varia Bhd's Gross Margin % too high?
Varia Bhd's current Gross Margin % is 11.29%. The Construction industry median Gross Margin % is 20.72. Varia Bhd's value of 11.29% is 45.5% below this industry median. Overall, Varia Bhd has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Varia Bhd's Gross Margin % compare to PWR and EME?
Varia Bhd's Gross Margin % of 11.29% can be compared against companies in the Construction industry. The industry median Gross Margin % is 20.72. Varia Bhd's value of 11.29% is 45.5% below this benchmark. 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 Construction company?
The median Gross Margin % among Construction companies is 20.72, based on 1,718 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. Varia Bhd's current Gross Margin % of 11.29% is 45.5% 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 Varia Bhd and its competitors. For the Construction industry, the median Gross Margin % is 20.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Varia Bhd's current Gross Margin % is 11.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Varia Bhd stock overvalued right now?
Varia Bhd (XKLS:5006) has a current Gross Margin % of 11.29%. The current Gross Margin % is 11.29% and 45.5% below the Construction industry median of 20.72. Varia Bhd's overall GF Score™ is 4/100. 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 Varia Bhd (XKLS:5006), the current Gross Margin % is 11.29% as of Jun. 2024. 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.
Varia Bhd formerly Stella Holdings Bhd is an investment holding company. The company's segment includes Investment holding; Construction; Property investment; Property development; and others. It generates maximum revenue from the Construction segment. The Construction segment includes Construction of civil and structural, mechanical and electrical works and project management.
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