Senheng New Retail BhdXKLS:5305 -3.45%54 Gross Margin % is 21.44% as of Mar. 2026, which is 1% above its 10-year median of 21.20. GuruFocus rates XKLS:5305 with a GF Score™ of 54/100 and a GF Value™ of RM0.22 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,113 Retail - Cyclical companies, Senheng New Retail Bhd ranks worse than 75.65% on this metric.
XKLS:5305's Gross Margin % is ranked worse than 75.65% of 1113
companies
in the Retail - Cyclical industry
Industry Median: 36.26
vs XKLS:5305: 21.50
Senheng New Retail Bhd had a gross margin of 21.44% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Senheng New Retail Bhd was 0.20% per year.
Senheng New Retail Bhd (XKLS:5305) 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
Senheng New Retail Bhd had a gross margin of 21.44% 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.
Senheng New Retail Bhd Gross Margin % Related Terms
Senheng New Retail Bhd Gross Margin % Historical Data
* Premium members only.
The historical data trend for Senheng New Retail 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:5305 vs CASY, WSM, DKS: Gross Margin % Comparison
For the Specialty Retail subindustry, Senheng New Retail 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.
Senheng New Retail Bhd Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Senheng New Retail Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Senheng New Retail 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.
Senheng New Retail Bhd (XKLS:5305) has a Gross Margin % of 21.44% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Senheng New Retail Bhd and its competitors. This is near median its historical median of 21.20. Over the past decade, Senheng New Retail Bhd's Gross Margin % has ranged from 20.85 to 22.32. According to the industry distribution chart, Senheng New Retail Bhd ranks #842 out of 1113 companies in the Retail - Cyclical industry, placing it in the top 75.7%.
Is Senheng New Retail Bhd's Gross Margin % too high?
Senheng New Retail Bhd's current Gross Margin % of 21.44% is near median its 10-year median of 21.20. Over the past 10 years, this metric has ranged from a low of 20.85 to a high of 22.32. The Retail - Cyclical industry median Gross Margin % is 36.26. Senheng New Retail Bhd's value of 21.44% is 40.9% below this industry median. Based on the distribution chart, Senheng New Retail Bhd ranks #842 out of 1113 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Senheng New Retail Bhd has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Senheng New Retail Bhd's Gross Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Senheng New Retail Bhd ranks #842 out of 1113 companies for Gross Margin %. This places Senheng New Retail Bhd in the lower half of its industry. The industry median Gross Margin % is 36.26. Senheng New Retail Bhd's value of 21.44% is 40.9% below this benchmark. Historically, Senheng New Retail Bhd's own Gross Margin % has ranged from 20.85 to 22.32 over the past decade. While the company's 10-year median is 21.20 vs. the industry median of 36.26, Senheng New Retail 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 Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.26, based on 1,113 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. Senheng New Retail Bhd's current Gross Margin % of 21.44% is 40.9% 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 Senheng New Retail Bhd and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Senheng New Retail Bhd's current Gross Margin % is 21.44%, which is near median its own 10-year median of 21.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Senheng New Retail Bhd stock overvalued right now?
Based on GuruFocus' analysis, Senheng New Retail Bhd (XKLS:5305) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.22, compared to a current price of RM0.14 — trading 36.4% below its estimated fair value. The current Gross Margin % is 21.44%, which is near median its 10-year median of 21.20 and 40.9% below the Retail - Cyclical industry median of 36.26. Senheng New Retail Bhd's overall GF Score™ is 54/100 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 Senheng New Retail Bhd (XKLS:5305), the current Gross Margin % is 21.44% 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 Senheng New Retail Bhd (XKLS:5305) Overvalued in 2026?
Based on GuruFocus' analysis, Senheng New Retail Bhd stock appears to be undervalued.
The current stock price of RM0.14 is trading 36.4% below its estimated GF Value™ of RM0.22.
GuruFocus considers Senheng New Retail Bhd to be Possible Value Trap.
Key valuation signals for XKLS:5305:
Gross Margin %: 21.44% (near median its 10-year median of 21.20)
GF Value™: RM0.22 vs. price of RM0.14 (36.4% below fair value)
Industry Position: 40.9% below the Retail - Cyclical median (#842 of 1113)
No single metric tells the full story. See the XKLS:5305 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Senheng New Retail Bhd is engaged in the retailing of electrical appliances. The company has two reportable segments: Trading division engaged in trading of the Group's products; and Warranty division engaged in the provision of warranty services in relation to replacement, repair, and maintenance of products sold. The trading segment derives the majority of the revenue. The business activities of the group are predominantly located in Malaysia. The electrical appliances product includes Mobiles & Tablets, Digital Gadgets, Computer & Laptops, Home Entertainment, Home Appliances, Health & Beauty, Smart Home and Solar Solution.
54GF Score
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