Engtex Group Bhd gross margin has been in long-term decline. The average rate of decline per year is -1.6%.
The historical rank and industry rank for Engtex Group Bhd's Gross Margin % or its related term are showing as below:
XKLS:5056'
s Gross Margin % Range Over the Past 10 Years
Min: 9.5 Med: 13.41 Max: 18.55
Current: 9.5
During the past 13 years, the highestGross Margin % of Engtex Group Bhd was 18.55%. The lowest was 9.50%. And the median was 13.41%.
XKLS:5056's Gross Margin % is ranked worse than 88.89% of 144
companies
in the Industrial Distribution industry
Industry Median: 22.97
vs XKLS:5056: 9.50
Engtex Group Bhd had a gross margin of 9.20% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Engtex Group Bhd was -1.60% per year.
Engtex Group Bhd Gross Margin % Historical Data
The historical data trend for Engtex Group 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.
Competitive Comparison of Engtex Group Bhd's Gross Margin %
For the Industrial Distribution subindustry, Engtex Group 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.
Engtex Group Bhd's Gross Margin % Distribution in the Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Engtex Group Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Engtex Group 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.
Engtex Group Bhd (XKLS:5056) 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
Engtex Group Bhd had a gross margin of 9.20% for the quarter that ended in Dec. 2023 => 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.
Engtex Group Bhd Gross Margin % Related Terms
Thank you for viewing the detailed overview of Engtex Group Bhd's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Engtex Group Bhd is an investment holding company operating in four business segments; The wholesale and distribution segment Includes wholesale and distribution of pipes, valves, fittings, plumbing materials, steel-related products, general hardware products, and construction materials, Manufacturing segment Includes manufacturing and sale of steel and ductile iron pipes and fittings, valves, manhole covers, hydrants, industrial casting products, welded wire mesh, hard-drawn wire, bitumen products, and other steel-related products, Property development segment includes property development and investment activities, and the Hospitality segment Includes the provision of rooms, food and beverage, meeting and function rooms, and other hospitality services.
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