LFE BhdXKLS:7170 +7.69%54 Gross Margin % is 17.04% as of Mar. 2026, which is 3% below its 10-year median of 17.49. GuruFocus rates XKLS:7170 with a GF Score™ of 54/100 and a GF Value™ of RM0.27 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,719 Construction companies, LFE Bhd ranks worse than 73.36% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. LFE Bhd's Gross Profit for the
three
months ended in Mar. 2026 was RM5.8 Mil. LFE Bhd's Revenue for the
three
months ended in Mar. 2026 was RM34.3 Mil. Therefore, LFE Bhd's Gross Margin % for the quarter that ended in Mar. 2026 was 17.04%.
The historical rank and industry rank for LFE Bhd's Gross Margin % or its related term are showing as below:
XKLS:7170'
s Gross Margin % Range Over the Past 10 Years
Min: 9.82 Med: 17.49 Max: 32.07
Current: 12.34
During the past 13 years, the highestGross Margin % of LFE Bhd was 32.07%. The lowest was 9.82%. And the median was 17.49%.
XKLS:7170's Gross Margin % is ranked worse than 73.36% of 1719
companies
in the Construction industry
Industry Median: 20.71
vs XKLS:7170: 12.34
LFE Bhd had a gross margin of 17.04% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for LFE Bhd was -0.60% per year.
LFE Bhd (XKLS:7170) 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
LFE Bhd had a gross margin of 17.04% 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.
LFE Bhd Gross Margin % Related Terms
LFE Bhd Gross Margin % Historical Data
* Premium members only.
The historical data trend for LFE 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:7170 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, LFE 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.
LFE Bhd Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, LFE Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where LFE 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.
LFE Bhd (XKLS:7170) has a Gross Margin % of 17.04% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on LFE Bhd and its competitors. This is near median its historical median of 17.49. Over the past decade, LFE Bhd's Gross Margin % has ranged from 9.82 to 32.07. According to the industry distribution chart, LFE Bhd ranks #1261 out of 1719 companies in the Construction industry, placing it in the top 73.4%.
Is LFE Bhd's Gross Margin % too high?
LFE Bhd's current Gross Margin % of 17.04% is near median its 10-year median of 17.49. Over the past 10 years, this metric has ranged from a low of 9.82 to a high of 32.07. The Construction industry median Gross Margin % is 20.71. LFE Bhd's value of 17.04% is 17.7% below this industry median. Based on the distribution chart, LFE Bhd ranks #1261 out of 1719 companies in the Construction industry, which is below the industry midpoint. Overall, LFE 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 LFE Bhd's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, LFE Bhd ranks #1261 out of 1719 companies for Gross Margin %. This places LFE Bhd in the lower half of its industry. The industry median Gross Margin % is 20.71. LFE Bhd's value of 17.04% is 17.7% below this benchmark. Historically, LFE Bhd's own Gross Margin % has ranged from 9.82 to 32.07 over the past decade. While the company's 10-year median is 17.49 vs. the industry median of 20.71, LFE 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 Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,719 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. LFE Bhd's current Gross Margin % of 17.04% is 17.7% 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 LFE Bhd and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LFE Bhd's current Gross Margin % is 17.04%, which is near median its own 10-year median of 17.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LFE Bhd stock overvalued right now?
Based on GuruFocus' analysis, LFE Bhd (XKLS:7170) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.27, compared to a current price of RM0.14 — trading 48.1% below its estimated fair value. The current Gross Margin % is 17.04%, which is near median its 10-year median of 17.49 and 17.7% below the Construction industry median of 20.71. LFE Bhd's overall GF Score™ is 54/100 with 4 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 LFE Bhd (XKLS:7170), the current Gross Margin % is 17.04% 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 LFE Bhd (XKLS:7170) Overvalued in 2026?
Based on GuruFocus' analysis, LFE Bhd stock appears to be undervalued.
The current stock price of RM0.14 is trading 48.1% below its estimated GF Value™ of RM0.27.
GuruFocus considers LFE Bhd to be Possible Value Trap.
Key valuation signals for XKLS:7170:
Gross Margin %: 17.04% (near median its 10-year median of 17.49)
GF Value™: RM0.27 vs. price of RM0.14 (48.1% below fair value)
Industry Position: 17.7% below the Construction median (#1261 of 1719)
No single metric tells the full story. See the XKLS:7170 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LFE Corp Bhd is a Malaysia-based company. The operating segment of the company are Construction, Mechanical and Electrical, and Property development, and Others. Geographically, the group operates in Malaysia. It earns the majority of its revenue from the construction, mechanical, and electrical segment.
54GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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