HE Group BhdXKLS:0296 +3.67%50 Return-on-Tangible-Equity is 14.64% as of Mar. 2026, which is 57% below its 10-year median of 34.38. GuruFocus rates XKLS:0296 with a GF Score™ of 50/100. The stock has 5 warning signs investors should review. Among 1,706 Construction companies, HE Group Bhd ranks better than 70.87% 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. HE Group Bhd's annualized net income for the quarter that ended in Mar. 2026 was RM10.2 Mil. HE Group Bhd's average shareholder tangible equity for the quarter that ended in Mar. 2026 was RM70.0 Mil. Therefore, HE Group Bhd's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.64%.
The historical rank and industry rank for HE Group Bhd's Return-on-Tangible-Equity or its related term are showing as below:
XKLS:0296'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.73 Med: 34.38 Max: 51.29
Current: 15.73
During the past 6 years, HE Group Bhd's highest Return-on-Tangible-Equity was 51.29%. The lowest was 15.73%. And the median was 34.38%.
XKLS:0296's Return-on-Tangible-Equity is ranked better than 70.87% of 1706
companies
in the Construction industry
Industry Median: 8.235
vs XKLS:0296: 15.73
HE Group Bhd (XKLS:0296) 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.
HE Group Bhd Return-on-Tangible-Equity Related Terms
HE Group Bhd Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for HE 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:0296 vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, HE 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.
HE Group Bhd Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, HE Group Bhd's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where HE 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 (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 14.64% mean?
HE Group Bhd (XKLS:0296) has a Return-on-Tangible-Equity of 14.64% 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 HE Group Bhd and its competitors. This is 57% below median its historical median of 34.38. Over the past decade, HE Group Bhd's Return-on-Tangible-Equity has ranged from 15.73 to 51.29. According to the industry distribution chart, HE Group Bhd ranks #497 out of 1706 companies in the Construction industry, placing it in the top 29.1%.
Is HE Group Bhd's Return-on-Tangible-Equity too high?
HE Group Bhd's current Return-on-Tangible-Equity of 14.64% is 57% below median its 10-year median of 34.38. Over the past 10 years, this metric has ranged from a low of 15.73 to a high of 51.29. The Construction industry median Return-on-Tangible-Equity is 8.24. HE Group Bhd's value of 14.64% is 77.8% above this industry median. Based on the distribution chart, HE Group Bhd ranks #497 out of 1706 companies in the Construction industry, which is above the industry midpoint. Overall, HE Group Bhd has a GF Score™ of 50/100, reflecting its overall financial health beyond just this single metric.
How does HE Group Bhd's Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, HE Group Bhd ranks #497 out of 1706 companies for Return-on-Tangible-Equity. This puts HE Group Bhd in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.24. HE Group Bhd's value of 14.64% is 77.8% above this benchmark. Historically, HE Group Bhd's own Return-on-Tangible-Equity has ranged from 15.73 to 51.29 over the past decade. While the company's 10-year median is 34.38 vs. the industry median of 8.24, HE Group 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.24, based on 1,706 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. HE Group Bhd's current Return-on-Tangible-Equity of 14.64% is 77.8% 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 HE Group Bhd and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HE Group Bhd's current Return-on-Tangible-Equity is 14.64%, which is 57% below median its own 10-year median of 34.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HE Group Bhd stock overvalued right now?
HE Group Bhd (XKLS:0296) has a current Return-on-Tangible-Equity of 14.64%. The current Return-on-Tangible-Equity is 14.64%, which is 57% below median its 10-year median of 34.38 and 77.8% above the Construction industry median of 8.24. HE Group Bhd's overall GF Score™ is 50/100 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 HE Group Bhd (XKLS:0296), the current Return-on-Tangible-Equity is 14.64% 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.
HE Group Bhd is an electrical engineering service provider focusing on power distribution systems for end-user premises such as industrial plants and industrial and commercial substations. It is involved in the design, supply, installation, testing, and commissioning of HV, MV, LV, and ELV power distribution systems, as well as hook-up and retrofitting of electrical equipment. It also provides other building systems and works, including mechanical systems, control, and instrumentation systems, as well as civil, structural, and architectural works. Its segment includes, the provision of power distribution systems that generates maximum revenue, other building systems and works, electrical equipment hook-up and retrofitting, and trading of electrical products.
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