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REDtone Digital BhdXKLS:0032 +1.61%49 Return-on-Tangible-Equity is 4.68% as of Mar. 2026, which is 60% below its 10-year median of 11.64. GuruFocus rates XKLS:0032 with a GF Score™ of 49/100 and a GF Value™ of RM0.84 (Significantly Undervalued). The stock has 8 warning signs investors should review. Among 328 Telecommunication Services companies, REDtone Digital Bhd ranks worse than 77.74% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. REDtone Digital Bhd's annualized net income for the quarter that ended in Mar. 2026 was RM11.4 Mil. REDtone Digital Bhd's average shareholder tangible equity for the quarter that ended in Mar. 2026 was RM243.5 Mil. Therefore, REDtone Digital Bhd's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 4.68%.
The historical rank and industry rank for REDtone Digital Bhd's Return-on-Tangible-Equity or its related term are showing as below:
XKLS:0032'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -5.18 Med: 11.64 Max: 26.91
Current: 1.2
During the past 13 years, REDtone Digital Bhd's highest Return-on-Tangible-Equity was 26.91%. The lowest was -5.18%. And the median was 11.64%.
XKLS:0032's Return-on-Tangible-Equity is ranked worse than 77.74% of 328
companies
in the Telecommunication Services industry
Industry Median: 14.525
vs XKLS:0032: 1.20
REDtone Digital Bhd (XKLS:0032) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
REDtone Digital Bhd Return-on-Tangible-Equity Related Terms
REDtone Digital Bhd Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for REDtone Digital Bhd's Return-on-Tangible-Equity 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.
REDtone Digital Bhd Return-on-Tangible-Equity Chart
XKLS:0032 vs VZ, TMUS, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, REDtone Digital Bhd's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
REDtone Digital Bhd Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, REDtone Digital Bhd's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where REDtone Digital Bhd's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 4.68% mean?
REDtone Digital Bhd (XKLS:0032) has a Return-on-Tangible-Equity of 4.68% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on REDtone Digital Bhd and its competitors. This is 60% below median its historical median of 11.64. According to the industry distribution chart, REDtone Digital Bhd ranks #255 out of 328 companies in the Telecommunication Services industry, placing it in the top 77.7%.
Is REDtone Digital Bhd's Return-on-Tangible-Equity too high?
REDtone Digital Bhd's current Return-on-Tangible-Equity of 4.68% is 60% below median its 10-year median of 11.64. The Telecommunication Services industry median Return-on-Tangible-Equity is 14.53. REDtone Digital Bhd's value of 4.68% is 67.8% below this industry median. Based on the distribution chart, REDtone Digital Bhd ranks #255 out of 328 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, REDtone Digital Bhd has a GF Score™ of 49/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does REDtone Digital Bhd's Return-on-Tangible-Equity compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, REDtone Digital Bhd ranks #255 out of 328 companies for Return-on-Tangible-Equity. This places REDtone Digital Bhd in the lower half of its industry. The industry median Return-on-Tangible-Equity is 14.53. REDtone Digital Bhd's value of 4.68% is 67.8% below this benchmark. While the company's 10-year median is 11.64 vs. the industry median of 14.53, REDtone Digital 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 Return-on-Tangible-Equity for a Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 14.53, based on 328 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. REDtone Digital Bhd's current Return-on-Tangible-Equity of 4.68% is 67.8% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on REDtone Digital Bhd and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 14.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REDtone Digital Bhd's current Return-on-Tangible-Equity is 4.68%, which is 60% below median its own 10-year median of 11.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REDtone Digital Bhd stock overvalued right now?
Based on GuruFocus' analysis, REDtone Digital Bhd (XKLS:0032) is currently considered Significantly Undervalued. The stock's GF Value™ is RM0.84, compared to a current price of RM0.32 — trading 62.5% below its estimated fair value. The current Return-on-Tangible-Equity is 4.68%, which is 60% below median its 10-year median of 11.64 and 67.8% below the Telecommunication Services industry median of 14.53. REDtone Digital Bhd's overall GF Score™ is 49/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For REDtone Digital Bhd (XKLS:0032), the current Return-on-Tangible-Equity is 4.68% 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 REDtone Digital Bhd (XKLS:0032) Overvalued in 2026?
Based on GuruFocus' analysis, REDtone Digital Bhd stock appears to be undervalued.
The current stock price of RM0.32 is trading 62.5% below its estimated GF Value™ of RM0.84.
GuruFocus considers REDtone Digital Bhd to be Significantly Undervalued.
Key valuation signals for XKLS:0032:
Return-on-Tangible-Equity: 4.68% (60% below median its 10-year median of 11.64)
GF Value™: RM0.84 vs. price of RM0.32 (62.5% below fair value)
Industry Position: 67.8% below the Telecommunication Services median (#255 of 328)
No single metric tells the full story. See the XKLS:0032 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
REDtone Digital Bhd is a digital infrastructure and services provider operating through three segments: Telecommunication Services, offering data, managed network services, Cloud PBX, SIP Trunking, managed cybersecurity, and Starlink satellite connectivity; Managed Telecommunications Network Services, strengthening Malaysia's digital infrastructure in underserved and rural areas, supporting initiatives like Kampung Tanpa Wayar, Time-3, and JENDELA; and Cloud, Artificial Intelligence, and Internet of Things, providing cloud-first, AI-powered, and IoT-enabled solutions including AI Agents, smart farming, and SaaS CRM platforms. The company generates majority of its revenue from the Managed Telecommunications Network Services segment and operates in Malaysia.
49GF Score
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