Malaysia Steel Works (KL) Bhd Shs (XKLS:5098) 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
Malaysia Steel Works (KL) Bhd Shs had a gross margin of 1.77% 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.
Malaysia Steel Works (KL) Bhd Shs Gross Margin % Related Terms
Malaysia Steel Works (KL) Bhd Shs Gross Margin % Historical Data
* 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.
Malaysia Steel Works (KL) Bhd Shs Gross Margin % Chart
XKLS:5098 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Malaysia Steel Works (KL) Bhd Shs'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.
Malaysia Steel Works (KL) Bhd Shs Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Malaysia Steel Works (KL) Bhd Shs's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Malaysia Steel Works (KL) Bhd Shs'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.
Malaysia Steel Works (KL) Bhd Shs (XKLS:5098) has a Gross Margin % of 1.77% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Malaysia Steel Works (KL) Bhd Shs and its competitors. This is 66% below median its historical median of 5.23. Over the past decade, Malaysia Steel Works (KL) Bhd Shs' Gross Margin % has ranged from 2.92 to 9.21. According to the industry distribution chart, Malaysia Steel Works (KL) Bhd Shs ranks #517 out of 594 companies in the Steel industry, placing it in the top 87%.
Is Malaysia Steel Works (KL) Bhd Shs' Gross Margin % too high?
Malaysia Steel Works (KL) Bhd Shs' current Gross Margin % of 1.77% is 66% below median its 10-year median of 5.23. Over the past 10 years, this metric has ranged from a low of 2.92 to a high of 9.21. The Steel industry median Gross Margin % is 12.61. Malaysia Steel Works (KL) Bhd Shs' value of 1.77% is 86% below this industry median. Based on the distribution chart, Malaysia Steel Works (KL) Bhd Shs ranks #517 out of 594 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Malaysia Steel Works (KL) Bhd Shs has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Malaysia Steel Works (KL) Bhd Shs' Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Malaysia Steel Works (KL) Bhd Shs ranks #517 out of 594 companies for Gross Margin %. This places Malaysia Steel Works (KL) Bhd Shs in the lower half of its industry. The industry median Gross Margin % is 12.61. Malaysia Steel Works (KL) Bhd Shs' value of 1.77% is 86% below this benchmark. Historically, Malaysia Steel Works (KL) Bhd Shs' own Gross Margin % has ranged from 2.92 to 9.21 over the past decade. While the company's 10-year median is 5.23 vs. the industry median of 12.61, Malaysia Steel Works (KL) Bhd Shs 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 Steel company?
The median Gross Margin % among Steel companies is 12.61, based on 594 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. Malaysia Steel Works (KL) Bhd Shs's current Gross Margin % of 1.77% is 86% 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 Malaysia Steel Works (KL) Bhd Shs and its competitors. For the Steel industry, the median Gross Margin % is 12.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Malaysia Steel Works (KL) Bhd Shs's current Gross Margin % is 1.77%, which is 66% below median its own 10-year median of 5.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Malaysia Steel Works (KL) Bhd Shs stock overvalued right now?
Based on GuruFocus' analysis, Malaysia Steel Works (KL) Bhd Shs (XKLS:5098) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.39, compared to a current price of RM0.23 — trading 41% below its estimated fair value. The current Gross Margin % is 1.77%, which is 66% below median its 10-year median of 5.23 and 86% below the Steel industry median of 12.61. Malaysia Steel Works (KL) Bhd Shs' overall GF Score™ is 43/100 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 Malaysia Steel Works (KL) Bhd Shs (XKLS:5098), the current Gross Margin % is 1.77% 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 Malaysia Steel Works (KL) Bhd Shs (XKLS:5098) Overvalued in 2026?
Based on GuruFocus' analysis, Malaysia Steel Works (KL) Bhd Shs stock appears to be undervalued.
The current stock price of RM0.23 is trading 41% below its estimated GF Value™ of RM0.39.
GuruFocus considers Malaysia Steel Works (KL) Bhd Shs to be Possible Value Trap.
Key valuation signals for XKLS:5098:
Gross Margin %: 1.77% (66% below median its 10-year median of 5.23)
GF Value™: RM0.39 vs. price of RM0.23 (41% below fair value)
Industry Position: 86% below the Steel median (#517 of 594)
No single metric tells the full story. See the XKLS:5098 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Malaysia Steel Works (KL) Bhd Shs Business Description
Malaysia Steel Works (KL) Bhd Shs engages in the manufacturing and marketing of high tensile steel bars, mild steel bars, and prime steel billets. These steel products are used in construction and infrastructure works. The company is organized in one business segment which is the Manufacturing of steel bars and billets. Geographically, the group has a business presence in Malaysia and Outside Malaysia, of which prime revenue is derived from Malaysia.
43GF Score
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