LGMS BhdXKLS:0249 77 Return-on-Tangible-Equity is 8.73% as of Mar. 2026, which is 69% below its 10-year median of 28.59. GuruFocus rates XKLS:0249 with a GF Score™ of 77/100 and a GF Value™ of RM1.29 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,467 Software companies, LGMS Bhd ranks better than 53.34% 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. LGMS Bhd's annualized net income for the quarter that ended in Mar. 2026 was RM8.79 Mil. LGMS Bhd's average shareholder tangible equity for the quarter that ended in Mar. 2026 was RM100.67 Mil. Therefore, LGMS Bhd's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 8.73%.
The historical rank and industry rank for LGMS Bhd's Return-on-Tangible-Equity or its related term are showing as below:
XKLS:0249'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.39 Med: 28.59 Max: 41.61
Current: 10.65
During the past 8 years, LGMS Bhd's highest Return-on-Tangible-Equity was 41.61%. The lowest was 10.39%. And the median was 28.59%.
XKLS:0249's Return-on-Tangible-Equity is ranked better than 53.34% of 2467
companies
in the Software industry
Industry Median: 8.68
vs XKLS:0249: 10.65
LGMS Bhd (XKLS:0249) 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.
LGMS Bhd Return-on-Tangible-Equity Related Terms
LGMS Bhd Return-on-Tangible-Equity Historical Data
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The historical data trend for LGMS 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:0249 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, LGMS 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.
LGMS Bhd Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, LGMS Bhd's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where LGMS 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 8.73% mean?
LGMS Bhd (XKLS:0249) has a Return-on-Tangible-Equity of 8.73% 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 LGMS Bhd and its competitors. This is 69% below median its historical median of 28.59. Over the past decade, LGMS Bhd's Return-on-Tangible-Equity has ranged from 10.39 to 41.61. According to the industry distribution chart, LGMS Bhd ranks #1151 out of 2467 companies in the Software industry, placing it in the top 46.7%.
Is LGMS Bhd's Return-on-Tangible-Equity too high?
LGMS Bhd's current Return-on-Tangible-Equity of 8.73% is 69% below median its 10-year median of 28.59. Over the past 10 years, this metric has ranged from a low of 10.39 to a high of 41.61. The Software industry median Return-on-Tangible-Equity is 8.68. LGMS Bhd's value of 8.73% is 0.6% above this industry median. Based on the distribution chart, LGMS Bhd ranks #1151 out of 2467 companies in the Software industry, which is above the industry midpoint. Overall, LGMS Bhd has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LGMS Bhd's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, LGMS Bhd ranks #1151 out of 2467 companies for Return-on-Tangible-Equity. This puts LGMS Bhd in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.68. LGMS Bhd's value of 8.73% is 0.6% above this benchmark. Historically, LGMS Bhd's own Return-on-Tangible-Equity has ranged from 10.39 to 41.61 over the past decade. While the company's 10-year median is 28.59 vs. the industry median of 8.68, LGMS Bhd has consistently been above 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 8.68, based on 2,467 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. LGMS Bhd's current Return-on-Tangible-Equity of 8.73% is 0.6% above 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 LGMS Bhd and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LGMS Bhd's current Return-on-Tangible-Equity is 8.73%, which is 69% below median its own 10-year median of 28.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LGMS Bhd stock overvalued right now?
Based on GuruFocus' analysis, LGMS Bhd (XKLS:0249) is currently considered Significantly Undervalued. The stock's GF Value™ is RM1.29, compared to a current price of RM0.43 — trading 66.7% below its estimated fair value. The current Return-on-Tangible-Equity is 8.73%, which is 69% below median its 10-year median of 28.59 and 0.6% above the Software industry median of 8.68. LGMS Bhd's overall GF Score™ is 77/100 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 LGMS Bhd (XKLS:0249), the current Return-on-Tangible-Equity is 8.73% 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 LGMS Bhd (XKLS:0249) Overvalued in 2026?
Based on GuruFocus' analysis, LGMS Bhd stock appears to be undervalued.
The current stock price of RM0.43 is trading 66.7% below its estimated GF Value™ of RM1.29.
GuruFocus considers LGMS Bhd to be Significantly Undervalued.
Key valuation signals for XKLS:0249:
Return-on-Tangible-Equity: 8.73% (69% below median its 10-year median of 28.59)
GF Value™: RM1.29 vs. price of RM0.43 (66.7% below fair value)
Industry Position: 0.6% above the Software median (#1151 of 2467)
No single metric tells the full story. See the XKLS:0249 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LGMS Bhd is an independent provider of professional cybersecurity services involved in cybersecurity assessment and penetration testing, cyber security management and compliance services as well as digital forensics. The company has three segments Cyber risk prevention Involved in the provision of security vulnerability assessment and penetration testing, training, and risk scoring; Cyber risk management and compliance Involved in the provision of cybersecurity advisory, certification, and compliance services; and Cyber threat and incident response Involved in the provision of digital forensics and computer crime investigations, cybersecurity incident response and compromise assessment. It generates revenue from Cyber risk prevention.
77GF Score
Get the complete analysis for XKLS:0249
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