Watta Holding Bhd (XKLS:7226) Net Margin %: -61.49% (As of Mar. 2026)


XKLS:7226 Watta Holding Bhd XKLS:7226
38 GF Score
Price RM0.40
GF Value RM0.25
Valuation Significantly Overvalued
! 3 Warning Signs
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What is Watta Holding Bhd Net Margin %?

Watta Holding Bhd XKLS:7226 -13.95% 38 Net Margin % is -61.49% as of Mar. 2026. GuruFocus rates XKLS:7226 with a GF Score™ of 38/100 and a GF Value™ of RM0.25 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,473 Hardware companies, Watta Holding Bhd ranks worse than 90.01% on this metric.

Net margin is calculated as Net Income divided by its Revenue. Watta Holding Bhd's Net Income for the three months ended in Mar. 2026 was RM-0.54 Mil. Watta Holding Bhd's Revenue for the three months ended in Mar. 2026 was RM0.88 Mil. Therefore, Watta Holding Bhd's net margin for the quarter that ended in Mar. 2026 was -61.49%.

The historical rank and industry rank for Watta Holding Bhd's Net Margin % or its related term are showing as below:

XKLS:7226' s Net Margin % Range Over the Past 10 Years
Min: -33.15   Med: -10.75   Max: 14.43
Current: -33.15


XKLS:7226's Net Margin % is ranked worse than
90.01% of 2473 companies
in the Hardware industry
Industry Median: 2.7 vs XKLS:7226: -33.15

Watta Holding Bhd  (XKLS:7226) Net Margin % Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.


Watta Holding Bhd Net Margin % Related Terms


Watta Holding Bhd Net Margin % Historical Data

* Premium members only.

The historical data trend for Watta Holding Bhd's Net 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.

Watta Holding Bhd Net Margin % Chart

Watta Holding Bhd Annual Data
Trend Sep15 Sep16 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Net Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -9.71 -7.72 -22.87 -22.08 -31.15

Watta Holding Bhd Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Net 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 -47.18 -43.84 -52.12 24.95 -61.49

XKLS:7226 vs CSCO, CIEN, MSI: Net Margin % Comparison

For the Communication Equipment subindustry, Watta Holding Bhd's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Hardware Industry

For the Hardware industry and Technology sector, Watta Holding Bhd's Net Margin % distribution charts can be found below:

* The bar in red indicates where Watta Holding Bhd's Net Margin % falls into.


XKLS:7226
38GF Score
Watta Holding Bhd XKLS:7226
Net Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Watta Holding Bhd Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Watta Holding Bhd's Net Margin for the fiscal year that ended in Dec. 2025 is calculated as

Net Margin=Net Income (A: Dec. 2025 )/Revenue (A: Dec. 2025 )
=-1.306/4.193
=-31.15 %

Watta Holding Bhd's Net Margin for the quarter that ended in Mar. 2026 is calculated as

Net Margin=Net Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=-0.543/0.883
=-61.49 %

* 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.

Frequently Asked Questions Learn more about Net Margin % →
What does a Net Margin % of -61.49% mean?
Watta Holding Bhd (XKLS:7226) has a Net Margin % of -61.49% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Watta Holding Bhd and its competitors. According to the industry distribution chart, Watta Holding Bhd ranks #2226 out of 2473 companies in the Hardware industry, placing it in the top 90%.
Is Watta Holding Bhd's Net Margin % too high?
Watta Holding Bhd's current Net Margin % is -61.49%. Based on the distribution chart, Watta Holding Bhd ranks #2226 out of 2473 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 Net Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Watta Holding Bhd ranks #2226 out of 2473 companies for Net Margin %. This places Watta Holding Bhd in the lower half of its industry. The industry median Net Margin % is 2.70. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Hardware company?
The median Net Margin % among Hardware companies is 2.70, based on 2,473 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Watta Holding Bhd and its competitors. For the Hardware industry, the median Net Margin % is 2.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watta Holding Bhd's current Net Margin % is -61.49%. 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 Net Margin % is -61.49%. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Watta Holding Bhd (XKLS:7226), the current Net Margin % is -61.49% 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:

  • Net Margin %: -61.49%
  • GF Value™: RM0.25 vs. price of RM0.40 (60% above fair value)
  • GF Score™: 38/100 with 3 warning signs

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 Business Description

Address Jalan Imbi, 12th Floor, Menara Cosway, Plaza Berjaya, Wilayah Persekutuan, Kuala Lumpur, MYS, 55100
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

Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

RM0.40
Price
RM0.25
GF Value