Sern Kou Resources BhdXKLS:7180 37 Gross Margin % is 0.51% as of Mar. 2026, which is 95% below its 10-year median of 10.86. GuruFocus rates XKLS:7180 with a GF Score™ of 37/100 and a GF Value™ of RM0.85 (Fairly Valued). The stock has 4 warning signs investors should review. Among 279 Forest Products companies, Sern Kou Resources Bhd ranks worse than 92.83% on this metric.
XKLS:7180's Gross Margin % is ranked worse than 92.83% of 279
companies
in the Forest Products industry
Industry Median: 19.05
vs XKLS:7180: 1.71
Sern Kou Resources Bhd had a gross margin of 0.51% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sern Kou Resources Bhd was -28.80% per year.
Sern Kou Resources Bhd (XKLS:7180) 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
Sern Kou Resources Bhd had a gross margin of 0.51% 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.
Sern Kou Resources Bhd Gross Margin % Related Terms
Sern Kou Resources Bhd Gross Margin % Historical Data
* Premium members only.
The historical data trend for Sern Kou Resources 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:7180 vs SSD, UFPI, BCC: Gross Margin % Comparison
For the Lumber & Wood Production subindustry, Sern Kou Resources 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.
Sern Kou Resources Bhd Gross Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Sern Kou Resources Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sern Kou Resources 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.
Sern Kou Resources Bhd (XKLS:7180) has a Gross Margin % of 0.51% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sern Kou Resources Bhd and its competitors. This is 95% below median its historical median of 10.86. Over the past decade, Sern Kou Resources Bhd's Gross Margin % has ranged from 1.71 to 14.66. According to the industry distribution chart, Sern Kou Resources Bhd ranks #259 out of 279 companies in the Forest Products industry, placing it in the top 92.8%.
Is Sern Kou Resources Bhd's Gross Margin % too high?
Sern Kou Resources Bhd's current Gross Margin % of 0.51% is 95% below median its 10-year median of 10.86. Over the past 10 years, this metric has ranged from a low of 1.71 to a high of 14.66. The Forest Products industry median Gross Margin % is 19.05. Sern Kou Resources Bhd's value of 0.51% is 97.3% below this industry median. Based on the distribution chart, Sern Kou Resources Bhd ranks #259 out of 279 companies in the Forest Products industry, which is in the bottom quartile relative to peers. Overall, Sern Kou Resources Bhd has a GF Score™ of 37/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sern Kou Resources Bhd's Gross Margin % compare to SSD and UFPI?
According to the Forest Products industry distribution chart, Sern Kou Resources Bhd ranks #259 out of 279 companies for Gross Margin %. This places Sern Kou Resources Bhd in the lower half of its industry. The industry median Gross Margin % is 19.05. Sern Kou Resources Bhd's value of 0.51% is 97.3% below this benchmark. Historically, Sern Kou Resources Bhd's own Gross Margin % has ranged from 1.71 to 14.66 over the past decade. While the company's 10-year median is 10.86 vs. the industry median of 19.05, Sern Kou Resources 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 Forest Products company?
The median Gross Margin % among Forest Products companies is 19.05, based on 279 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. Sern Kou Resources Bhd's current Gross Margin % of 0.51% is 97.3% 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 Sern Kou Resources Bhd and its competitors. For the Forest Products industry, the median Gross Margin % is 19.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sern Kou Resources Bhd's current Gross Margin % is 0.51%, which is 95% below median its own 10-year median of 10.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sern Kou Resources Bhd stock overvalued right now?
Based on GuruFocus' analysis, Sern Kou Resources Bhd (XKLS:7180) is currently considered Fairly Valued. The stock's GF Value™ is RM0.85, compared to a current price of RM0.82 — trading 3.5% below its estimated fair value. The current Gross Margin % is 0.51%, which is 95% below median its 10-year median of 10.86 and 97.3% below the Forest Products industry median of 19.05. Sern Kou Resources Bhd's overall GF Score™ is 37/100 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 Sern Kou Resources Bhd (XKLS:7180), the current Gross Margin % is 0.51% 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 Sern Kou Resources Bhd (XKLS:7180) Overvalued in 2026?
Based on GuruFocus' analysis, Sern Kou Resources Bhd stock appears to be undervalued.
The current stock price of RM0.82 is trading 3.5% below its estimated GF Value™ of RM0.85.
GuruFocus considers Sern Kou Resources Bhd to be Fairly Valued.
Key valuation signals for XKLS:7180:
Gross Margin %: 0.51% (95% below median its 10-year median of 10.86)
GF Value™: RM0.85 vs. price of RM0.82 (3.5% below fair value)
Industry Position: 97.3% below the Forest Products median (#259 of 279)
No single metric tells the full story. See the XKLS:7180 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sern Kou Resources Bhd, along with its subsidiaries, is engaged in the manufacturing, processing, and trading of all kinds of timber, wood, and related products, as well as in the logging, processing, and trading of rubberwood and timber. The company's reportable segments include the manufacturing and trading of wooden furniture, investment holding, and the processing and trading of wood. Substantial revenue for the company is generated from its processing and trading of the wood segment. The company has a presence in various geographical areas, including Malaysia, the United States of America, European countries, and Asia-Pacific countries.
37GF Score
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