Southern Acids (M) BhdXKLS:5134 +2.31%73 Gross Margin % is 15.96% as of Mar. 2026, which is 38% below its 10-year median of 25.62. GuruFocus rates XKLS:5134 with a GF Score™ of 73/100 and a GF Value™ of RM2.89 (Fairly Valued). The stock has 3 warning signs investors should review. Among 515 Conglomerates companies, Southern Acids (M) Bhd ranks worse than 82.72% on this metric.
XKLS:5134's Gross Margin % is ranked worse than 82.72% of 515
companies
in the Conglomerates industry
Industry Median: 25.96
vs XKLS:5134: 13.04
Southern Acids (M) Bhd had a gross margin of 15.96% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Southern Acids (M) Bhd was -15.90% per year.
Southern Acids (M) Bhd (XKLS:5134) 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
Southern Acids (M) Bhd had a gross margin of 15.96% 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.
Southern Acids (M) Bhd Gross Margin % Related Terms
Southern Acids (M) Bhd Gross Margin % Historical Data
* Premium members only.
The historical data trend for Southern Acids (M) 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.
For the Conglomerates subindustry, Southern Acids (M) 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.
Southern Acids (M) Bhd Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Southern Acids (M) Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Southern Acids (M) 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.
Southern Acids (M) Bhd (XKLS:5134) has a Gross Margin % of 15.96% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Southern Acids (M) Bhd and its competitors. This is 38% below median its historical median of 25.62. Over the past decade, Southern Acids (M) Bhd's Gross Margin % has ranged from 12.26 to 32.36. According to the industry distribution chart, Southern Acids (M) Bhd ranks #426 out of 515 companies in the Conglomerates industry, placing it in the top 82.7%.
Is Southern Acids (M) Bhd's Gross Margin % too high?
Southern Acids (M) Bhd's current Gross Margin % of 15.96% is 38% below median its 10-year median of 25.62. Over the past 10 years, this metric has ranged from a low of 12.26 to a high of 32.36. The Conglomerates industry median Gross Margin % is 25.96. Southern Acids (M) Bhd's value of 15.96% is 38.5% below this industry median. Based on the distribution chart, Southern Acids (M) Bhd ranks #426 out of 515 companies in the Conglomerates industry, which is in the bottom quartile relative to peers. Overall, Southern Acids (M) Bhd has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Southern Acids (M) Bhd's Gross Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Southern Acids (M) Bhd ranks #426 out of 515 companies for Gross Margin %. This places Southern Acids (M) Bhd in the lower half of its industry. The industry median Gross Margin % is 25.96. Southern Acids (M) Bhd's value of 15.96% is 38.5% below this benchmark. Historically, Southern Acids (M) Bhd's own Gross Margin % has ranged from 12.26 to 32.36 over the past decade. While the company's 10-year median is 25.62 vs. the industry median of 25.96, Southern Acids (M) 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 Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.96, based on 515 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. Southern Acids (M) Bhd's current Gross Margin % of 15.96% is 38.5% 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 Southern Acids (M) Bhd and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southern Acids (M) Bhd's current Gross Margin % is 15.96%, which is 38% below median its own 10-year median of 25.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southern Acids (M) Bhd stock overvalued right now?
Based on GuruFocus' analysis, Southern Acids (M) Bhd (XKLS:5134) is currently considered Fairly Valued. The stock's GF Value™ is RM2.89, compared to a current price of RM3.10 — trading 7.3% above its estimated fair value. The current Gross Margin % is 15.96%, which is 38% below median its 10-year median of 25.62 and 38.5% below the Conglomerates industry median of 25.96. Southern Acids (M) Bhd's overall GF Score™ is 73/100 with 3 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 Southern Acids (M) Bhd (XKLS:5134), the current Gross Margin % is 15.96% 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 Southern Acids (M) Bhd (XKLS:5134) Overvalued in 2026?
Based on GuruFocus' analysis, Southern Acids (M) Bhd stock appears to be overvalued.
The current stock price of RM3.10 is trading 7.3% above its estimated GF Value™ of RM2.89.
GuruFocus considers Southern Acids (M) Bhd to be Fairly Valued.
Key valuation signals for XKLS:5134:
Gross Margin %: 15.96% (38% below median its 10-year median of 25.62)
GF Value™: RM2.89 vs. price of RM3.10 (7.3% above fair value)
Industry Position: 38.5% below the Conglomerates median (#426 of 515)
No single metric tells the full story. See the XKLS:5134 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Southern Acids (M) Bhd is an investment holding and the provision of a management service company. The company's operating segment includes Oleochemical; Healthcare; Milling and Cultivation and Investments and services. It generates maximum revenue from the Milling and Cultivation segment. The Oleochemical Segment is involved in the manufacturing and marketing of fatty acids and glycerine. Its Milling and Cultivation Segment is principally engaged in the processing of Fresh Fruit Bunches. Geographically, it has a presence in Malaysia, Indonesia, Europe, America, and Other Countries.
73GF Score
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