Hektar Real Estate Investment Trust (XKLS:5121) 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
Hektar Real Estate Investment Trust had a gross margin of 38.28% 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.
Hektar Real Estate Investment Trust Gross Margin % Related Terms
Hektar Real Estate Investment Trust 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.
Hektar Real Estate Investment Trust Gross Margin % Chart
XKLS:5121 vs SPG, O, KIM: Gross Margin % Comparison
For the REIT - Retail subindustry, Hektar Real Estate Investment Trust'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.
Hektar Real Estate Investment Trust Gross Margin % vs REITs Industry
* 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.
Hektar Real Estate Investment Trust (XKLS:5121) has a Gross Margin % of 38.28% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hektar Real Estate Investment Trust and its competitors. This is 15% below median its historical median of 44.81. Over the past decade, Hektar Real Estate Investment Trust's Gross Margin % has ranged from 34.73 to 52.98. According to the industry distribution chart, Hektar Real Estate Investment Trust ranks #623 out of 680 companies in the REITs industry, placing it in the top 91.6%.
Is Hektar Real Estate Investment Trust's Gross Margin % too high?
Hektar Real Estate Investment Trust's current Gross Margin % of 38.28% is 15% below median its 10-year median of 44.81. Over the past 10 years, this metric has ranged from a low of 34.73 to a high of 52.98. The REITs industry median Gross Margin % is 69.61. Hektar Real Estate Investment Trust's value of 38.28% is 45% below this industry median. Based on the distribution chart, Hektar Real Estate Investment Trust ranks #623 out of 680 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Hektar Real Estate Investment Trust has a GF Score™ of 44/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hektar Real Estate Investment Trust's Gross Margin % compare to SPG and O?
According to the REITs industry distribution chart, Hektar Real Estate Investment Trust ranks #623 out of 680 companies for Gross Margin %. This places Hektar Real Estate Investment Trust in the lower half of its industry. The industry median Gross Margin % is 69.61. Hektar Real Estate Investment Trust's value of 38.28% is 45% below this benchmark. Historically, Hektar Real Estate Investment Trust's own Gross Margin % has ranged from 34.73 to 52.98 over the past decade. While the company's 10-year median is 44.81 vs. the industry median of 69.61, Hektar Real Estate Investment Trust 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 REITs company?
The median Gross Margin % among REITs companies is 69.61, based on 680 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. Hektar Real Estate Investment Trust's current Gross Margin % of 38.28% is 45% 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 Hektar Real Estate Investment Trust and its competitors. For the REITs industry, the median Gross Margin % is 69.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hektar Real Estate Investment Trust's current Gross Margin % is 38.28%, which is 15% below median its own 10-year median of 44.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hektar Real Estate Investment Trust stock overvalued right now?
Based on GuruFocus' analysis, Hektar Real Estate Investment Trust (XKLS:5121) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.46, compared to a current price of RM0.42 — trading 9.8% below its estimated fair value. The current Gross Margin % is 38.28%, which is 15% below median its 10-year median of 44.81 and 45% below the REITs industry median of 69.61. Hektar Real Estate Investment Trust's overall GF Score™ is 44/100 with 10 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 Hektar Real Estate Investment Trust (XKLS:5121), the current Gross Margin % is 38.28% 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 Hektar Real Estate Investment Trust (XKLS:5121) Overvalued in 2026?
Based on GuruFocus' analysis, Hektar Real Estate Investment Trust stock appears to be undervalued.
The current stock price of RM0.42 is trading 9.8% below its estimated GF Value™ of RM0.46.
GuruFocus considers Hektar Real Estate Investment Trust to be Modestly Undervalued.
Key valuation signals for XKLS:5121:
Gross Margin %: 38.28% (15% below median its 10-year median of 44.81)
GF Value™: RM0.46 vs. price of RM0.42 (9.8% below fair value)
Industry Position: 45% below the REITs median (#623 of 680)
No single metric tells the full story. See the XKLS:5121 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hektar Real Estate Investment Trust Business Description
Hektar Real Estate Investment Trust is a retail-focused REIT. Hektar REIT's principal objective is to provide its Unitholders with defensible income distribution and to enhance the long-term value of the fund. It invests in income-producing real estate used for retail purposes. Its reportable segments include: Retail and Education, of which Retail segment derives maximum revenue. Hektar REIT's portfolio currently consists of shopping centers situated in Subang Jaya, Melaka, Muar, Sungai Petani, Segamat, and Kulim.
44GF Score
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