ARB BhdXKLS:7181 Gross Margin % is 2.99% as of Mar. 2026, which is 83% below its 10-year median of 18.06. The stock has 2 warning signs investors should review. Among 2,680 Software companies, ARB Bhd ranks worse than 95.11% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. ARB Bhd's Gross Profit for the
three
months ended in Mar. 2026 was RM2.6 Mil. ARB Bhd's Revenue for the
three
months ended in Mar. 2026 was RM85.8 Mil. Therefore, ARB Bhd's Gross Margin % for the quarter that ended in Mar. 2026 was 2.99%.
Warning Sign:
ARB Bhd gross margin has been in long-term decline. The average rate of decline per year is -42.2%.
The historical rank and industry rank for ARB Bhd's Gross Margin % or its related term are showing as below:
XKLS:7181'
s Gross Margin % Range Over the Past 10 Years
Min: -7.96 Med: 18.06 Max: 47.81
Current: 3.82
During the past 13 years, the highestGross Margin % of ARB Bhd was 47.81%. The lowest was -7.96%. And the median was 18.06%.
XKLS:7181's Gross Margin % is ranked worse than 95.11% of 2680
companies
in the Software industry
Industry Median: 40.45
vs XKLS:7181: 3.82
ARB Bhd had a gross margin of 2.99% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for ARB Bhd was -42.20% per year.
ARB Bhd (XKLS:7181) 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
ARB Bhd had a gross margin of 2.99% 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.
ARB Bhd Gross Margin % Related Terms
ARB Bhd Gross Margin % Historical Data
* Premium members only.
The historical data trend for ARB 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:7181 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, ARB 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.
ARB Bhd Gross Margin % vs Software Industry
For the Software industry and Technology sector, ARB Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ARB 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.
ARB Bhd (XKLS:7181) has a Gross Margin % of 2.99% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on ARB Bhd and its competitors. This is 83% below median its historical median of 18.06. According to the industry distribution chart, ARB Bhd ranks #2549 out of 2680 companies in the Software industry, placing it in the top 95.1%.
Is ARB Bhd's Gross Margin % too high?
ARB Bhd's current Gross Margin % of 2.99% is 83% below median its 10-year median of 18.06. The Software industry median Gross Margin % is 40.45. ARB Bhd's value of 2.99% is 92.6% below this industry median. Based on the distribution chart, ARB Bhd ranks #2549 out of 2680 companies in the Software industry, which is in the bottom quartile relative to peers.
How does ARB Bhd's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, ARB Bhd ranks #2549 out of 2680 companies for Gross Margin %. This places ARB Bhd in the lower half of its industry. The industry median Gross Margin % is 40.45. ARB Bhd's value of 2.99% is 92.6% below this benchmark. While the company's 10-year median is 18.06 vs. the industry median of 40.45, ARB 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 Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,680 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. ARB Bhd's current Gross Margin % of 2.99% is 92.6% 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 ARB Bhd and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARB Bhd's current Gross Margin % is 2.99%, which is 83% below median its own 10-year median of 18.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARB Bhd stock overvalued right now?
Based on GuruFocus' analysis, ARB Bhd (XKLS:7181) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.03, compared to a current price of RM0.03 — trading 16.7% below its estimated fair value. The current Gross Margin % is 2.99%, which is 83% below median its 10-year median of 18.06 and 92.6% below the Software industry median of 40.45. 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 ARB Bhd (XKLS:7181), the current Gross Margin % is 2.99% 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.
ARB Bhd is principally engaged in the provision of management services and investment holding. The Group's core operations are carried out through subsidiaries involved in Cloud, Customer Relationship Management (CRM), and Platform-related businesses, providing CRM Solutions, Cloud Solutions, and Platform Solutions. Its reportable segments are Cloud, CRM, Platform, and Investment holding and others, with the Platform segment generating the maximum revenue. The Group operates predominantly in Malaysia.
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