Dagang NeXchange BhdXKLS:4456 -1.14%61 Return-on-Tangible-Equity is 11.88% as of Mar. 2026, which is 27% above its 10-year median of 9.33. GuruFocus rates XKLS:4456 with a GF Score™ of 61/100 and a GF Value™ of RM0.29 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 2,467 Software companies, Dagang NeXchange Bhd ranks worse than 86.62% 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. Dagang NeXchange Bhd's annualized net income for the quarter that ended in Mar. 2026 was RM51 Mil. Dagang NeXchange Bhd's average shareholder tangible equity for the quarter that ended in Mar. 2026 was RM430 Mil. Therefore, Dagang NeXchange Bhd's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 11.88%.
The historical rank and industry rank for Dagang NeXchange Bhd's Return-on-Tangible-Equity or its related term are showing as below:
XKLS:4456'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -67.81 Med: 9.33 Max: 89.36
Current: -47.76
During the past 13 years, Dagang NeXchange Bhd's highest Return-on-Tangible-Equity was 89.36%. The lowest was -67.81%. And the median was 9.33%.
XKLS:4456's Return-on-Tangible-Equity is ranked worse than 86.62% of 2467
companies
in the Software industry
Industry Median: 8.82
vs XKLS:4456: -47.76
Dagang NeXchange Bhd (XKLS:4456) 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.
Dagang NeXchange Bhd Return-on-Tangible-Equity Related Terms
Dagang NeXchange Bhd Return-on-Tangible-Equity Historical Data
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The historical data trend for Dagang NeXchange 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.
Dagang NeXchange Bhd Return-on-Tangible-Equity Chart
XKLS:4456 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Dagang NeXchange 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.
Dagang NeXchange Bhd Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Dagang NeXchange Bhd's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Dagang NeXchange 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 11.88% mean?
Dagang NeXchange Bhd (XKLS:4456) has a Return-on-Tangible-Equity of 11.88% 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 Dagang NeXchange Bhd and its competitors. This is 27% above median its historical median of 9.33. According to the industry distribution chart, Dagang NeXchange Bhd ranks #2137 out of 2467 companies in the Software industry, placing it in the top 86.6%.
Is Dagang NeXchange Bhd's Return-on-Tangible-Equity too high?
Dagang NeXchange Bhd's current Return-on-Tangible-Equity of 11.88% is 27% above median its 10-year median of 9.33. The Software industry median Return-on-Tangible-Equity is 8.82. Dagang NeXchange Bhd's value of 11.88% is 34.7% above this industry median. Based on the distribution chart, Dagang NeXchange Bhd ranks #2137 out of 2467 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Dagang NeXchange Bhd has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dagang NeXchange Bhd's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Dagang NeXchange Bhd ranks #2137 out of 2467 companies for Return-on-Tangible-Equity. This places Dagang NeXchange Bhd in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.82. Dagang NeXchange Bhd's value of 11.88% is 34.7% above this benchmark. While the company's 10-year median is 9.33 vs. the industry median of 8.82, Dagang NeXchange 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 8.82, 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. Dagang NeXchange Bhd's current Return-on-Tangible-Equity of 11.88% is 34.7% 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 Dagang NeXchange Bhd and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dagang NeXchange Bhd's current Return-on-Tangible-Equity is 11.88%, which is 27% above median its own 10-year median of 9.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dagang NeXchange Bhd stock overvalued right now?
Based on GuruFocus' analysis, Dagang NeXchange Bhd (XKLS:4456) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.29, compared to a current price of RM0.44 — trading 50% above its estimated fair value. The current Return-on-Tangible-Equity is 11.88%, which is 27% above median its 10-year median of 9.33 and 34.7% above the Software industry median of 8.82. Dagang NeXchange Bhd's overall GF Score™ is 61/100 with 9 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 Dagang NeXchange Bhd (XKLS:4456), the current Return-on-Tangible-Equity is 11.88% 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 Dagang NeXchange Bhd (XKLS:4456) Overvalued in 2026?
Based on GuruFocus' analysis, Dagang NeXchange Bhd stock appears to be overvalued.
The current stock price of RM0.44 is trading 50% above its estimated GF Value™ of RM0.29.
GuruFocus considers Dagang NeXchange Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:4456:
Return-on-Tangible-Equity: 11.88% (27% above median its 10-year median of 9.33)
GF Value™: RM0.29 vs. price of RM0.44 (50% above fair value)
Industry Position: 34.7% above the Software median (#2137 of 2467)
No single metric tells the full story. See the XKLS:4456 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dagang NeXchange Bhd is a Malaysia based company. The business operates in various segments that include Corporate, Information technology, Energy and Semiconductor. Corporate is in provision of corporate services to the entities within the group. Information technology which include Supply, delivery, installation, testing, commissioning and maintenance of IT hardware, development, management and B2G e-commerce. Energy includes providing upstream oil and gas exploration, production, sale of oil and gas related equipment and services, provision of engineering, technical support and energy related business. Key revenue is generated from Semiconductor segment which consists manufacturing of semiconductor wafers ,supplies multinational fables, sales of semiconductor related tools and others.
61GF Score
Get the complete analysis for XKLS:4456
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