Rhong Khen International BhdXKLS:7006 -0.93%65 Gross Margin % is 5.04% as of Mar. 2026, which is 60% below its 10-year median of 12.56. GuruFocus rates XKLS:7006 with a GF Score™ of 65/100 and a GF Value™ of RM1.12 (Fairly Valued). The stock has 2 warning signs investors should review. Among 416 Furnishings, Fixtures & Appliances companies, Rhong Khen International Bhd ranks worse than 92.07% on this metric.
XKLS:7006's Gross Margin % is ranked worse than 92.07% of 416
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 29.235
vs XKLS:7006: 9.19
Rhong Khen International Bhd had a gross margin of 5.04% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Rhong Khen International Bhd (XKLS:7006) 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
Rhong Khen International Bhd had a gross margin of 5.04% 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.
Rhong Khen International Bhd Gross Margin % Related Terms
Rhong Khen International Bhd 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.
XKLS:7006 vs SN, SGI, MHK: Gross Margin % Comparison
For the Furnishings, Fixtures & Appliances subindustry, Rhong Khen International 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.
Rhong Khen International Bhd Gross Margin % vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Rhong Khen International Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rhong Khen International 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.
Rhong Khen International Bhd (XKLS:7006) has a Gross Margin % of 5.04% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Rhong Khen International Bhd and its competitors. This is 60% below median its historical median of 12.56. Over the past decade, Rhong Khen International Bhd's Gross Margin % has ranged from 9.19 to 17.73. According to the industry distribution chart, Rhong Khen International Bhd ranks #383 out of 416 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 92.1%.
Is Rhong Khen International Bhd's Gross Margin % too high?
Rhong Khen International Bhd's current Gross Margin % of 5.04% is 60% below median its 10-year median of 12.56. Over the past 10 years, this metric has ranged from a low of 9.19 to a high of 17.73. The Furnishings, Fixtures & Appliances industry median Gross Margin % is 29.24. Rhong Khen International Bhd's value of 5.04% is 82.8% below this industry median. Based on the distribution chart, Rhong Khen International Bhd ranks #383 out of 416 companies in the Furnishings, Fixtures & Appliances industry, which is in the bottom quartile relative to peers. Overall, Rhong Khen International Bhd has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rhong Khen International Bhd's Gross Margin % compare to SN and SGI?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Rhong Khen International Bhd ranks #383 out of 416 companies for Gross Margin %. This places Rhong Khen International Bhd in the lower half of its industry. The industry median Gross Margin % is 29.24. Rhong Khen International Bhd's value of 5.04% is 82.8% below this benchmark. Historically, Rhong Khen International Bhd's own Gross Margin % has ranged from 9.19 to 17.73 over the past decade. While the company's 10-year median is 12.56 vs. the industry median of 29.24, Rhong Khen International 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 Furnishings, Fixtures & Appliances company?
The median Gross Margin % among Furnishings, Fixtures & Appliances companies is 29.24, based on 416 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. Rhong Khen International Bhd's current Gross Margin % of 5.04% is 82.8% 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 Rhong Khen International Bhd and its competitors. For the Furnishings, Fixtures & Appliances industry, the median Gross Margin % is 29.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rhong Khen International Bhd's current Gross Margin % is 5.04%, which is 60% below median its own 10-year median of 12.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rhong Khen International Bhd stock overvalued right now?
Based on GuruFocus' analysis, Rhong Khen International Bhd (XKLS:7006) is currently considered Fairly Valued. The stock's GF Value™ is RM1.12, compared to a current price of RM1.07 — trading 4.5% below its estimated fair value. The current Gross Margin % is 5.04%, which is 60% below median its 10-year median of 12.56 and 82.8% below the Furnishings, Fixtures & Appliances industry median of 29.24. Rhong Khen International Bhd's overall GF Score™ is 65/100 with 2 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 Rhong Khen International Bhd (XKLS:7006), the current Gross Margin % is 5.04% 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 Rhong Khen International Bhd (XKLS:7006) Overvalued in 2026?
Based on GuruFocus' analysis, Rhong Khen International Bhd stock appears to be undervalued.
The current stock price of RM1.07 is trading 4.5% below its estimated GF Value™ of RM1.12.
GuruFocus considers Rhong Khen International Bhd to be Fairly Valued.
Key valuation signals for XKLS:7006:
Gross Margin %: 5.04% (60% below median its 10-year median of 12.56)
GF Value™: RM1.12 vs. price of RM1.07 (4.5% below fair value)
Industry Position: 82.8% below the Furnishings, Fixtures & Appliances median (#383 of 416)
No single metric tells the full story. See the XKLS:7006 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rhong Khen International Bhd is a Malaysian investment holding company specializing in the manufacturing and distribution of wooden furniture and components, mainly rubber-wood products, for domestic and export markets. Its key products include dining and bedroom furniture, decorative panels, and polyester boards. About half of its raw materials are rubber wood, with the remainder sourced from poplar, pine, and other woods. The company operates through three segments: manufacturing, rental of investment properties, and investment holding, with the majority of its revenue generated from manufacturing. It serves markets in the United States, Southeast Asia, Australia, Canada, and other regions, with the United States contributing the highest portion of its revenue.
65GF Score
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