Engtex Group BhdXKLS:5056 +2.47%57 Gross Margin % is 13.94% as of Mar. 2026, which is 19% above its 10-year median of 11.74. GuruFocus rates XKLS:5056 with a GF Score™ of 57/100 and a GF Value™ of RM0.54 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 153 Industrial Distribution companies, Engtex Group Bhd ranks worse than 83.01% on this metric.
Engtex Group Bhd gross margin has been in long-term decline. The average rate of decline per year is -7.3%.
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: 11.74 Max: 18.55
Current: 12.05
During the past 13 years, the highestGross Margin % of Engtex Group Bhd was 18.55%. The lowest was 9.50%. And the median was 11.74%.
XKLS:5056's Gross Margin % is ranked worse than 83.01% of 153
companies
in the Industrial Distribution industry
Industry Median: 24.34
vs XKLS:5056: 12.05
Engtex Group Bhd had a gross margin of 13.94% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Engtex Group Bhd was -7.30% per year.
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 13.94% for the quarter that ended in Mar. 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.
Engtex Group Bhd Gross Margin % Related Terms
Engtex Group Bhd Gross Margin % Historical Data
* Premium members only.
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.
XKLS:5056 vs GWW, FAST, FERG: Gross Margin % Comparison
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 Gross Margin % vs 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) has a Gross Margin % of 13.94% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Engtex Group Bhd and its competitors. This is 19% above median its historical median of 11.74. Over the past decade, Engtex Group Bhd's Gross Margin % has ranged from 9.50 to 18.55. According to the industry distribution chart, Engtex Group Bhd ranks #127 out of 153 companies in the Industrial Distribution industry, placing it in the top 83%.
Is Engtex Group Bhd's Gross Margin % too high?
Engtex Group Bhd's current Gross Margin % of 13.94% is 19% above median its 10-year median of 11.74. Over the past 10 years, this metric has ranged from a low of 9.50 to a high of 18.55. The Industrial Distribution industry median Gross Margin % is 24.34. Engtex Group Bhd's value of 13.94% is 42.7% below this industry median. Based on the distribution chart, Engtex Group Bhd ranks #127 out of 153 companies in the Industrial Distribution industry, which is in the bottom quartile relative to peers. Overall, Engtex Group Bhd has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Engtex Group Bhd's Gross Margin % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Engtex Group Bhd ranks #127 out of 153 companies for Gross Margin %. This places Engtex Group Bhd in the lower half of its industry. The industry median Gross Margin % is 24.34. Engtex Group Bhd's value of 13.94% is 42.7% below this benchmark. Historically, Engtex Group Bhd's own Gross Margin % has ranged from 9.50 to 18.55 over the past decade. While the company's 10-year median is 11.74 vs. the industry median of 24.34, Engtex Group 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 an Industrial Distribution company?
The median Gross Margin % among Industrial Distribution companies is 24.34, based on 153 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. Engtex Group Bhd's current Gross Margin % of 13.94% is 42.7% 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 Engtex Group Bhd and its competitors. For the Industrial Distribution industry, the median Gross Margin % is 24.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Engtex Group Bhd's current Gross Margin % is 13.94%, which is 19% above median its own 10-year median of 11.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Engtex Group Bhd stock overvalued right now?
Based on GuruFocus' analysis, Engtex Group Bhd (XKLS:5056) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.54, compared to a current price of RM0.42 — trading 23.1% below its estimated fair value. The current Gross Margin % is 13.94%, which is 19% above median its 10-year median of 11.74 and 42.7% below the Industrial Distribution industry median of 24.34. Engtex Group Bhd's overall GF Score™ is 57/100 with 5 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 Engtex Group Bhd (XKLS:5056), the current Gross Margin % is 13.94% 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 Engtex Group Bhd (XKLS:5056) Overvalued in 2026?
Based on GuruFocus' analysis, Engtex Group Bhd stock appears to be undervalued.
The current stock price of RM0.42 is trading 23.1% below its estimated GF Value™ of RM0.54.
GuruFocus considers Engtex Group Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:5056:
Gross Margin %: 13.94% (19% above median its 10-year median of 11.74)
GF Value™: RM0.54 vs. price of RM0.42 (23.1% below fair value)
Industry Position: 42.7% below the Industrial Distribution median (#127 of 153)
No single metric tells the full story. See the XKLS:5056 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
57GF Score
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