Edaran BhdXKLS:5036 66 Gross Margin % is 36.68% as of Mar. 2026, which is 1% above its 10-year median of 36.26. GuruFocus rates XKLS:5036 with a GF Score™ of 66/100 and a GF Value™ of RM1.54 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 2,678 Software companies, Edaran Bhd ranks worse than 59.11% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Edaran Bhd's Gross Profit for the
three
months ended in Mar. 2026 was RM13.0 Mil. Edaran Bhd's Revenue for the
three
months ended in Mar. 2026 was RM35.4 Mil. Therefore, Edaran Bhd's Gross Margin % for the quarter that ended in Mar. 2026 was 36.68%.
Warning Sign:
Edaran Bhd gross margin has been in long-term decline. The average rate of decline per year is -6.7%.
The historical rank and industry rank for Edaran Bhd's Gross Margin % or its related term are showing as below:
XKLS:5036'
s Gross Margin % Range Over the Past 10 Years
Min: 15.4 Med: 36.26 Max: 49.96
Current: 33.4
During the past 13 years, the highestGross Margin % of Edaran Bhd was 49.96%. The lowest was 15.40%. And the median was 36.26%.
XKLS:5036's Gross Margin % is ranked worse than 59.11% of 2678
companies
in the Software industry
Industry Median: 40.455
vs XKLS:5036: 33.40
Edaran Bhd had a gross margin of 36.68% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Edaran Bhd was -6.70% per year.
Edaran Bhd (XKLS:5036) 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
Edaran Bhd had a gross margin of 36.68% 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.
Edaran Bhd Gross Margin % Related Terms
Edaran Bhd Gross Margin % Historical Data
* Premium members only.
The historical data trend for Edaran 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:5036 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Edaran 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.
Edaran Bhd Gross Margin % vs Software Industry
For the Software industry and Technology sector, Edaran Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Edaran 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.
Edaran Bhd (XKLS:5036) has a Gross Margin % of 36.68% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Edaran Bhd and its competitors. This is near median its historical median of 36.26. Over the past decade, Edaran Bhd's Gross Margin % has ranged from 15.40 to 49.96. According to the industry distribution chart, Edaran Bhd ranks #1583 out of 2678 companies in the Software industry, placing it in the top 59.1%.
Is Edaran Bhd's Gross Margin % too high?
Edaran Bhd's current Gross Margin % of 36.68% is near median its 10-year median of 36.26. Over the past 10 years, this metric has ranged from a low of 15.40 to a high of 49.96. The Software industry median Gross Margin % is 40.46. Edaran Bhd's value of 36.68% is 9.3% below this industry median. Based on the distribution chart, Edaran Bhd ranks #1583 out of 2678 companies in the Software industry, which is below the industry midpoint. Overall, Edaran Bhd has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Edaran Bhd's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Edaran Bhd ranks #1583 out of 2678 companies for Gross Margin %. This places Edaran Bhd in the lower half of its industry. The industry median Gross Margin % is 40.46. Edaran Bhd's value of 36.68% is 9.3% below this benchmark. Historically, Edaran Bhd's own Gross Margin % has ranged from 15.40 to 49.96 over the past decade. While the company's 10-year median is 36.26 vs. the industry median of 40.46, Edaran 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 40.46, based on 2,678 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. Edaran Bhd's current Gross Margin % of 36.68% is 9.3% 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 Edaran Bhd and its competitors. For the Software industry, the median Gross Margin % is 40.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Edaran Bhd's current Gross Margin % is 36.68%, which is near median its own 10-year median of 36.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Edaran Bhd stock overvalued right now?
Based on GuruFocus' analysis, Edaran Bhd (XKLS:5036) is currently considered Modestly Undervalued. The stock's GF Value™ is RM1.54, compared to a current price of RM1.16 — trading 24.7% below its estimated fair value. The current Gross Margin % is 36.68%, which is near median its 10-year median of 36.26 and 9.3% below the Software industry median of 40.46. Edaran Bhd's overall GF Score™ is 66/100 with 7 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 Edaran Bhd (XKLS:5036), the current Gross Margin % is 36.68% 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 Edaran Bhd (XKLS:5036) Overvalued in 2026?
Based on GuruFocus' analysis, Edaran Bhd stock appears to be undervalued.
The current stock price of RM1.16 is trading 24.7% below its estimated GF Value™ of RM1.54.
GuruFocus considers Edaran Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:5036:
Gross Margin %: 36.68% (near median its 10-year median of 36.26)
GF Value™: RM1.54 vs. price of RM1.16 (24.7% below fair value)
Industry Position: 9.3% below the Software median (#1583 of 2678)
No single metric tells the full story. See the XKLS:5036 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Edaran Bhd is an investment holding company. Along with its subsidiaries, it is engaged in the following reportable segments: Information technology and services, Telecommunications, Investment holding, and Lifestyle. Information technology includes provisioning, installation, commissioning, integration, and maintenance of information technology products and related services. The Telecommunication segment includes provisioning, installation, commissioning, and maintenance of power supply equipment for telecommunication systems and integration and maintenance of telecommunication equipment, and the Lifestyle segment involves lifestyle activities. The company derives its key revenue from the Information technology services segment. Geographically, all of its revenue is derived from Malaysia.
66GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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