Texchem Resources BhdXKLS:8702 -1.92%50 Gross Margin % is 24.96% as of Mar. 2026, which is 1% above its 10-year median of 24.75. GuruFocus rates XKLS:8702 with a GF Score™ of 50/100 and a GF Value™ of RM0.90 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 511 Conglomerates companies, Texchem Resources Bhd ranks worse than 50.88% on this metric.
XKLS:8702's Gross Margin % is ranked worse than 50.88% of 511
companies
in the Conglomerates industry
Industry Median: 25.96
vs XKLS:8702: 25.66
Texchem Resources Bhd had a gross margin of 24.96% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Texchem Resources Bhd was 3.30% per year.
Texchem Resources Bhd (XKLS:8702) 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
Texchem Resources Bhd had a gross margin of 24.96% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
Texchem Resources Bhd Gross Margin % Related Terms
Texchem Resources Bhd Gross Margin % Historical Data
* Premium members only.
The historical data trend for Texchem 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.
For the Conglomerates subindustry, Texchem 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.
Texchem Resources Bhd Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Texchem Resources Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Texchem 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.
Texchem Resources Bhd (XKLS:8702) has a Gross Margin % of 24.96% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Texchem Resources Bhd and its competitors. This is near median its historical median of 24.75. Over the past decade, Texchem Resources Bhd's Gross Margin % has ranged from 20.91 to 25.98. According to the industry distribution chart, Texchem Resources Bhd ranks #260 out of 511 companies in the Conglomerates industry, placing it in the top 50.9%.
Is Texchem Resources Bhd's Gross Margin % too high?
Texchem Resources Bhd's current Gross Margin % of 24.96% is near median its 10-year median of 24.75. Over the past 10 years, this metric has ranged from a low of 20.91 to a high of 25.98. The Conglomerates industry median Gross Margin % is 25.96. Texchem Resources Bhd's value of 24.96% is 3.9% below this industry median. Based on the distribution chart, Texchem Resources Bhd ranks #260 out of 511 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Texchem Resources Bhd has a GF Score™ of 50/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Texchem Resources Bhd's Gross Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Texchem Resources Bhd ranks #260 out of 511 companies for Gross Margin %. This places Texchem Resources Bhd in the lower half of its industry. The industry median Gross Margin % is 25.96. Texchem Resources Bhd's value of 24.96% is 3.9% below this benchmark. Historically, Texchem Resources Bhd's own Gross Margin % has ranged from 20.91 to 25.98 over the past decade. While the company's 10-year median is 24.75 vs. the industry median of 25.96, Texchem 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 Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.96, based on 511 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. Texchem Resources Bhd's current Gross Margin % of 24.96% is 3.9% 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 Texchem Resources Bhd and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texchem Resources Bhd's current Gross Margin % is 24.96%, which is near median its own 10-year median of 24.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Texchem Resources Bhd stock overvalued right now?
Based on GuruFocus' analysis, Texchem Resources Bhd (XKLS:8702) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.90, compared to a current price of RM0.77 — trading 15% below its estimated fair value. The current Gross Margin % is 24.96%, which is near median its 10-year median of 24.75 and 3.9% below the Conglomerates industry median of 25.96. Texchem Resources Bhd's overall GF Score™ is 50/100 with 5 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 Texchem Resources Bhd (XKLS:8702), the current Gross Margin % is 24.96% 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 Texchem Resources Bhd (XKLS:8702) Overvalued in 2026?
Based on GuruFocus' analysis, Texchem Resources Bhd stock appears to be undervalued.
The current stock price of RM0.77 is trading 15% below its estimated GF Value™ of RM0.90.
GuruFocus considers Texchem Resources Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:8702:
Gross Margin %: 24.96% (near median its 10-year median of 24.75)
GF Value™: RM0.90 vs. price of RM0.77 (15% below fair value)
Industry Position: 3.9% below the Conglomerates median (#260 of 511)
No single metric tells the full story. See the XKLS:8702 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Texchem Resources Bhd is an investment holding company. The company has five reportable segments: Industrial, Polymer Engineering, Food, Venture Business and Restaurant. The products under industrial segments are plastic resins, rubber/latex chemicals, PVC resins and additives, adhesive chemicals, food ingredients, dyestuff and textile auxiliaries. The polymer division designs new polymer solutions and designs for industries such as data storage industry, semiconductor, consumer electronics and electrical, telecommunications and life science industry. The restaurant division operates restaurant brands such as sushi king, Miraku, and Hoshino Coffee. The majority of revenue is derived from the Industrial segment. Geographically, the maximum revenue is generated from Malaysia.
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