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Paragon Union Bhd (XKLS:9407) Gross Margin % : 12.70% (As of Mar. 2024)


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What is Paragon Union Bhd Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Paragon Union Bhd's Gross Profit for the three months ended in Mar. 2024 was RM3.15 Mil. Paragon Union Bhd's Revenue for the three months ended in Mar. 2024 was RM24.82 Mil. Therefore, Paragon Union Bhd's Gross Margin % for the quarter that ended in Mar. 2024 was 12.70%.

Warning Sign:

Paragon Union Bhd gross margin has been in long-term decline. The average rate of decline per year is -12.1%.


The historical rank and industry rank for Paragon Union Bhd's Gross Margin % or its related term are showing as below:

XKLS:9407' s Gross Margin % Range Over the Past 10 Years
Min: 1.93   Med: 11.3   Max: 25.64
Current: 9.92


During the past 13 years, the highest Gross Margin % of Paragon Union Bhd was 25.64%. The lowest was 1.93%. And the median was 11.30%.

XKLS:9407's Gross Margin % is ranked worse than
84.14% of 1274 companies
in the Vehicles & Parts industry
Industry Median: 19.795 vs XKLS:9407: 9.92

Paragon Union Bhd had a gross margin of 12.70% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Paragon Union Bhd was -12.10% per year.


Paragon Union Bhd Gross Margin % Historical Data

The historical data trend for Paragon Union 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.

* Premium members only.

Paragon Union Bhd Gross Margin % Chart

Paragon Union Bhd Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.14 10.37 1.93 10.45 9.80

Paragon Union Bhd Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Sep23 Dec23 Mar24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.72 8.45 9.04 8.31 12.70

Competitive Comparison of Paragon Union Bhd's Gross Margin %

For the Auto Parts subindustry, Paragon Union 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.


Paragon Union Bhd's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Paragon Union Bhd's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Paragon Union Bhd's Gross Margin % falls into.



Paragon Union Bhd Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Paragon Union Bhd's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=9 / 91.668
=(Revenue - Cost of Goods Sold) / Revenue
=(91.668 - 82.686) / 91.668
=9.80 %

Paragon Union Bhd's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=3.2 / 24.818
=(Revenue - Cost of Goods Sold) / Revenue
=(24.818 - 21.665) / 24.818
=12.70 %

* 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.


Paragon Union Bhd  (XKLS:9407) 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

Paragon Union Bhd had a gross margin of 12.70% for the quarter that ended in Mar. 2024 => 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.


Paragon Union Bhd Gross Margin % Related Terms

Thank you for viewing the detailed overview of Paragon Union Bhd's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Paragon Union Bhd (XKLS:9407) Business Description

Traded in Other Exchanges
N/A
Address
Lot 14 Jalan CJ 1/1, Kawasan Perindustrian Cheras Jaya, Batu 11, Cheras, SGR, MYS, 43200
Paragon Union Bhd, through its subsidiaries, engages in the manufacturing and distribution of commercial carpets, rugs, automotive carpets and NVH components. It has two reportable business: Automotive and Commercial. The Automotive segment covers car carpets and components, and the Commercial segment produces commercial carpets. The Automotive segment generates maximum revenue for the company. Geographically, the company has a business presence in Malaysia, Dubai and others, of which a majority of the revenue is derived from Malaysia.

Paragon Union Bhd (XKLS:9407) Headlines

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