Aco Group BhdXKLS:0218 +3.23%44 Return-on-Tangible-Equity is 1.96% as of Feb. 2026, which is 75% below its 10-year median of 7.80. GuruFocus rates XKLS:0218 with a GF Score™ of 44/100 and a GF Value™ of RM0.21 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 2,378 Hardware companies, Aco Group Bhd ranks worse than 54.96% 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. Aco Group Bhd's annualized net income for the quarter that ended in Feb. 2026 was RM2.0 Mil. Aco Group Bhd's average shareholder tangible equity for the quarter that ended in Feb. 2026 was RM100.8 Mil. Therefore, Aco Group Bhd's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 1.96%.
The historical rank and industry rank for Aco Group Bhd's Return-on-Tangible-Equity or its related term are showing as below:
XKLS:0218'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.33 Med: 7.8 Max: 21.77
Current: 4.01
During the past 10 years, Aco Group Bhd's highest Return-on-Tangible-Equity was 21.77%. The lowest was 3.33%. And the median was 7.80%.
XKLS:0218's Return-on-Tangible-Equity is ranked worse than 54.96% of 2378
companies
in the Hardware industry
Industry Median: 5.265
vs XKLS:0218: 4.01
Aco Group Bhd (XKLS:0218) 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.
Aco Group Bhd Return-on-Tangible-Equity Related Terms
Aco Group Bhd Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Aco Group 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.
XKLS:0218 vs SNX, ARW, AVT: Return-on-Tangible-Equity Comparison
For the Electronics & Computer Distribution subindustry, Aco Group 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.
Aco Group Bhd Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Aco Group Bhd's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Aco Group 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 (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 1.96% mean?
Aco Group Bhd (XKLS:0218) has a Return-on-Tangible-Equity of 1.96% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Aco Group Bhd and its competitors. This is 75% below median its historical median of 7.80. Over the past decade, Aco Group Bhd's Return-on-Tangible-Equity has ranged from 3.33 to 21.77. According to the industry distribution chart, Aco Group Bhd ranks #1307 out of 2378 companies in the Hardware industry, placing it in the top 55%.
Is Aco Group Bhd's Return-on-Tangible-Equity too high?
Aco Group Bhd's current Return-on-Tangible-Equity of 1.96% is 75% below median its 10-year median of 7.80. Over the past 10 years, this metric has ranged from a low of 3.33 to a high of 21.77. The Hardware industry median Return-on-Tangible-Equity is 5.27. Aco Group Bhd's value of 1.96% is 62.8% below this industry median. Based on the distribution chart, Aco Group Bhd ranks #1307 out of 2378 companies in the Hardware industry, which is below the industry midpoint. Overall, Aco Group Bhd has a GF Score™ of 44/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aco Group Bhd's Return-on-Tangible-Equity compare to SNX and ARW?
According to the Hardware industry distribution chart, Aco Group Bhd ranks #1307 out of 2378 companies for Return-on-Tangible-Equity. This places Aco Group Bhd in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.27. Aco Group Bhd's value of 1.96% is 62.8% below this benchmark. Historically, Aco Group Bhd's own Return-on-Tangible-Equity has ranged from 3.33 to 21.77 over the past decade. While the company's 10-year median is 7.80 vs. the industry median of 5.27, Aco Group 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 Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.27, based on 2,378 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. Aco Group Bhd's current Return-on-Tangible-Equity of 1.96% is 62.8% 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 Aco Group Bhd and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aco Group Bhd's current Return-on-Tangible-Equity is 1.96%, which is 75% below median its own 10-year median of 7.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aco Group Bhd stock overvalued right now?
Based on GuruFocus' analysis, Aco Group Bhd (XKLS:0218) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.21, compared to a current price of RM0.16 — trading 23.8% below its estimated fair value. The current Return-on-Tangible-Equity is 1.96%, which is 75% below median its 10-year median of 7.80 and 62.8% below the Hardware industry median of 5.27. Aco Group Bhd's overall GF Score™ is 44/100 with 5 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 Aco Group Bhd (XKLS:0218), the current Return-on-Tangible-Equity is 1.96% as of Feb. 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 Aco Group Bhd (XKLS:0218) Overvalued in 2026?
Based on GuruFocus' analysis, Aco Group Bhd stock appears to be undervalued.
The current stock price of RM0.16 is trading 23.8% below its estimated GF Value™ of RM0.21.
GuruFocus considers Aco Group Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:0218:
Return-on-Tangible-Equity: 1.96% (75% below median its 10-year median of 7.80)
GF Value™: RM0.21 vs. price of RM0.16 (23.8% below fair value)
Industry Position: 62.8% below the Hardware median (#1307 of 2378)
No single metric tells the full story. See the XKLS:0218 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aco Group Bhd is an investment holding company. Along with its subsidiaries, it is involved in management consultancy activities, distribution of electrical products and accessories, wholesale of household appliances, and trading of electronic, electrical goods, lighting, and lighting accessories. Its product portfolio comprises communication cables and wires, fans and air-conditioners, water heaters, switches and power outlets, and others. The group's reportable operating segments are as follows: Industrial users and Resellers. Maximum revenue is generated from the Industrial users segment, which represents sales of electrical products and accessories to electrical contractors, electrical products manufacturers, and others. Geographically, the group operates mainly in Malaysia.
44GF Score
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