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SAM Engineering & Equipment (M) Bhd (XKLS:9822) 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
SAM Engineering & Equipment (M) Bhd had a gross margin of 7.35% 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.
SAM Engineering & Equipment (M) Bhd Gross Margin % Related Terms
SAM Engineering & Equipment (M) Bhd Gross Margin % Historical Data
* 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.
SAM Engineering & Equipment (M) Bhd Gross Margin % Chart
XKLS:9822 vs SPCX, GE, RTX: Gross Margin % Comparison
For the Aerospace & Defense subindustry, SAM Engineering & Equipment (M) 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.
SAM Engineering & Equipment (M) Bhd Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, SAM Engineering & Equipment (M) Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SAM Engineering & Equipment (M) 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.
SAM Engineering & Equipment (M) Bhd (XKLS:9822) has a Gross Margin % of 7.35% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SAM Engineering & Equipment (M) Bhd and its competitors. This is 47% below median its historical median of 13.99. Over the past decade, SAM Engineering & Equipment (M) Bhd's Gross Margin % has ranged from 9.88 to 16.58. According to the industry distribution chart, SAM Engineering & Equipment (M) Bhd ranks #305 out of 346 companies in the Aerospace & Defense industry, placing it in the top 88.2%.
Is SAM Engineering & Equipment (M) Bhd's Gross Margin % too high?
SAM Engineering & Equipment (M) Bhd's current Gross Margin % of 7.35% is 47% below median its 10-year median of 13.99. Over the past 10 years, this metric has ranged from a low of 9.88 to a high of 16.58. The Aerospace & Defense industry median Gross Margin % is 26.87. SAM Engineering & Equipment (M) Bhd's value of 7.35% is 72.6% below this industry median. Based on the distribution chart, SAM Engineering & Equipment (M) Bhd ranks #305 out of 346 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, SAM Engineering & Equipment (M) Bhd has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SAM Engineering & Equipment (M) Bhd's Gross Margin % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, SAM Engineering & Equipment (M) Bhd ranks #305 out of 346 companies for Gross Margin %. This places SAM Engineering & Equipment (M) Bhd in the lower half of its industry. The industry median Gross Margin % is 26.87. SAM Engineering & Equipment (M) Bhd's value of 7.35% is 72.6% below this benchmark. Historically, SAM Engineering & Equipment (M) Bhd's own Gross Margin % has ranged from 9.88 to 16.58 over the past decade. While the company's 10-year median is 13.99 vs. the industry median of 26.87, SAM Engineering & Equipment (M) 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 an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.87, based on 346 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. SAM Engineering & Equipment (M) Bhd's current Gross Margin % of 7.35% is 72.6% 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 SAM Engineering & Equipment (M) Bhd and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SAM Engineering & Equipment (M) Bhd's current Gross Margin % is 7.35%, which is 47% below median its own 10-year median of 13.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SAM Engineering & Equipment (M) Bhd stock overvalued right now?
Based on GuruFocus' analysis, SAM Engineering & Equipment (M) Bhd (XKLS:9822) is currently considered Modestly Overvalued. The stock's GF Value™ is RM3.90, compared to a current price of RM4.58 — trading 17.4% above its estimated fair value. The current Gross Margin % is 7.35%, which is 47% below median its 10-year median of 13.99 and 72.6% below the Aerospace & Defense industry median of 26.87. SAM Engineering & Equipment (M) Bhd's overall GF Score™ is 72/100 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 SAM Engineering & Equipment (M) Bhd (XKLS:9822), the current Gross Margin % is 7.35% 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 SAM Engineering & Equipment (M) Bhd (XKLS:9822) Overvalued in 2026?
Based on GuruFocus' analysis, SAM Engineering & Equipment (M) Bhd stock appears to be overvalued.
The current stock price of RM4.58 is trading 17.4% above its estimated GF Value™ of RM3.90.
GuruFocus considers SAM Engineering & Equipment (M) Bhd to be Modestly Overvalued.
Key valuation signals for XKLS:9822:
Gross Margin %: 7.35% (47% below median its 10-year median of 13.99)
GF Value™: RM3.90 vs. price of RM4.58 (17.4% above fair value)
Industry Position: 72.6% below the Aerospace & Defense median (#305 of 346)
No single metric tells the full story. See the XKLS:9822 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SAM Engineering & Equipment (M) Bhd is a Malaysian company that provides precision machining, equipment integration, and automation solutions to aerospace and equipment industries. The company is engaged in providing manufacturing solutions for critical engine parts and other related equipment parts and also on engineering and high precision tooling including large format CNC machining parts. It also provides for the arrangement of equipment engineering and solutions for commercial, semiconductor, and other industries. The company manages its business in two segments namely Aerospace and Equipment manufacturing. It has a business presence in Malaysia, Asia (excluding Malaysia), North America, Latin America, and Europe.
72GF Score
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