The historical rank and industry rank for Watta Holding Bhd's Gross Margin % or its related term are showing as below:
XKLS:7226'
s Gross Margin % Range Over the Past 10 Years
Min: -45.24 Med: 36.46 Max: 55.97
Current: -45.24
During the past 13 years, the highestGross Margin % of Watta Holding Bhd was 55.97%. The lowest was -45.24%. And the median was 36.46%.
XKLS:7226's Gross Margin % is ranked worse than 99.43% of 2454
companies
in the Hardware industry
Industry Median: 24.565
vs XKLS:7226: -45.24
Watta Holding Bhd had a gross margin of -54.36% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Watta Holding Bhd was 8.30% per year.
Watta Holding Bhd (XKLS:7226) 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
Watta Holding Bhd had a gross margin of -54.36% 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.
Watta Holding Bhd Gross Margin % Related Terms
Watta Holding Bhd Gross Margin % Historical Data
* Premium members only.
The historical data trend for Watta Holding 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:7226 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Watta Holding 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.
Watta Holding Bhd Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Watta Holding Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Watta Holding 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.
Watta Holding Bhd (XKLS:7226) has a Gross Margin % of -54.36% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Watta Holding Bhd and its competitors. According to the industry distribution chart, Watta Holding Bhd ranks #2440 out of 2454 companies in the Hardware industry, placing it in the top 99.4%.
Is Watta Holding Bhd's Gross Margin % too high?
Watta Holding Bhd's current Gross Margin % is -54.36%. Based on the distribution chart, Watta Holding Bhd ranks #2440 out of 2454 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Watta Holding Bhd has a GF Score™ of 38/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Watta Holding Bhd's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Watta Holding Bhd ranks #2440 out of 2454 companies for Gross Margin %. This places Watta Holding Bhd in the lower half of its industry. The industry median Gross Margin % is 24.57. 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.57, based on 2,454 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. 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 Watta Holding Bhd and its competitors. For the Hardware industry, the median Gross Margin % is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watta Holding Bhd's current Gross Margin % is -54.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Watta Holding Bhd stock overvalued right now?
Based on GuruFocus' analysis, Watta Holding Bhd (XKLS:7226) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.25, compared to a current price of RM0.40 — trading 60% above its estimated fair value. The current Gross Margin % is -54.36%. Watta Holding Bhd's overall GF Score™ is 38/100 with 3 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 Watta Holding Bhd (XKLS:7226), the current Gross Margin % is -54.36% 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 Watta Holding Bhd (XKLS:7226) Overvalued in 2026?
Based on GuruFocus' analysis, Watta Holding Bhd stock appears to be overvalued.
The current stock price of RM0.40 is trading 60% above its estimated GF Value™ of RM0.25.
GuruFocus considers Watta Holding Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:7226:
Gross Margin %: -54.36%
GF Value™: RM0.25 vs. price of RM0.40 (60% above fair value)
No single metric tells the full story. See the XKLS:7226 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Watta Holding Bhd is a company whose principal activities include investment holding and management services. Along with its subsidiaries, the company has two reportable operating segments, Services and Investment holding and others. The majority of its revenue is generated from the Services segment, which is involved in the servicing of telecommunication equipment and related products. Geographically, the group predominantly operates in Malaysia.
38GF Score
Get the complete analysis for XKLS:7226
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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