Nestle Malaysia BhdXKLS:4707 +0.55%87 Return-on-Tangible-Equity is 242.36% as of Mar. 2026, which is 114% above its 10-year median of 113.05. GuruFocus rates XKLS:4707 with a GF Score™ of 87/100 and a GF Value™ of RM117.03 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,872 Consumer Packaged Goods companies, Nestle Malaysia Bhd ranks better than 95.83% 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. Nestle Malaysia Bhd's annualized net income for the quarter that ended in Mar. 2026 was RM820 Mil. Nestle Malaysia Bhd's average shareholder tangible equity for the quarter that ended in Mar. 2026 was RM339 Mil. Therefore, Nestle Malaysia Bhd's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 242.36%.
The historical rank and industry rank for Nestle Malaysia Bhd's Return-on-Tangible-Equity or its related term are showing as below:
XKLS:4707'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 101.25 Med: 113.05 Max: 159.25
Current: 159.25
During the past 13 years, Nestle Malaysia Bhd's highest Return-on-Tangible-Equity was 159.25%. The lowest was 101.25%. And the median was 113.05%.
XKLS:4707's Return-on-Tangible-Equity is ranked better than 95.83% of 1872
companies
in the Consumer Packaged Goods industry
Industry Median: 7.73
vs XKLS:4707: 159.25
Nestle Malaysia Bhd (XKLS:4707) 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.
Nestle Malaysia Bhd Return-on-Tangible-Equity Related Terms
Nestle Malaysia Bhd Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Nestle Malaysia 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.
Nestle Malaysia Bhd Return-on-Tangible-Equity Chart
XKLS:4707 vs KHC, GIS: Return-on-Tangible-Equity Comparison
For the Packaged Foods subindustry, Nestle Malaysia 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.
Nestle Malaysia Bhd Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle Malaysia Bhd's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nestle Malaysia 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 242.36% mean?
Nestle Malaysia Bhd (XKLS:4707) has a Return-on-Tangible-Equity of 242.36% 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 Nestle Malaysia Bhd and its competitors. This is 114% above median its historical median of 113.05. Over the past decade, Nestle Malaysia Bhd's Return-on-Tangible-Equity has ranged from 101.25 to 159.25. According to the industry distribution chart, Nestle Malaysia Bhd ranks #78 out of 1872 companies in the Consumer Packaged Goods industry, placing it in the top 4.2%.
Is Nestle Malaysia Bhd's Return-on-Tangible-Equity too high?
Nestle Malaysia Bhd's current Return-on-Tangible-Equity of 242.36% is 114% above median its 10-year median of 113.05. Over the past 10 years, this metric has ranged from a low of 101.25 to a high of 159.25. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 7.73. Nestle Malaysia Bhd's value of 242.36% is 3035.3% above this industry median. Based on the distribution chart, Nestle Malaysia Bhd ranks #78 out of 1872 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Nestle Malaysia Bhd has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nestle Malaysia Bhd's Return-on-Tangible-Equity compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Nestle Malaysia Bhd ranks #78 out of 1872 companies for Return-on-Tangible-Equity. This places Nestle Malaysia Bhd in the top 4% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.73. Nestle Malaysia Bhd's value of 242.36% is 3035.3% above this benchmark. Historically, Nestle Malaysia Bhd's own Return-on-Tangible-Equity has ranged from 101.25 to 159.25 over the past decade. While the company's 10-year median is 113.05 vs. the industry median of 7.73, Nestle Malaysia 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 Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 7.73, based on 1,872 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. Nestle Malaysia Bhd's current Return-on-Tangible-Equity of 242.36% is 3035.3% 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 Nestle Malaysia Bhd and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 7.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nestle Malaysia Bhd's current Return-on-Tangible-Equity is 242.36%, which is 114% above median its own 10-year median of 113.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nestle Malaysia Bhd stock overvalued right now?
Based on GuruFocus' analysis, Nestle Malaysia Bhd (XKLS:4707) is currently considered Modestly Undervalued. The stock's GF Value™ is RM117.03, compared to a current price of RM91.80 — trading 21.6% below its estimated fair value. The current Return-on-Tangible-Equity is 242.36%, which is 114% above median its 10-year median of 113.05 and 3035.3% above the Consumer Packaged Goods industry median of 7.73. Nestle Malaysia Bhd's overall GF Score™ is 87/100 with 4 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 Nestle Malaysia Bhd (XKLS:4707), the current Return-on-Tangible-Equity is 242.36% 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 Nestle Malaysia Bhd (XKLS:4707) Overvalued in 2026?
Based on GuruFocus' analysis, Nestle Malaysia Bhd stock appears to be undervalued.
The current stock price of RM91.80 is trading 21.6% below its estimated GF Value™ of RM117.03.
GuruFocus considers Nestle Malaysia Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:4707:
Return-on-Tangible-Equity: 242.36% (114% above median its 10-year median of 113.05)
GF Value™: RM117.03 vs. price of RM91.80 (21.6% below fair value)
Industry Position: 3035.3% above the Consumer Packaged Goods median (#78 of 1872)
No single metric tells the full story. See the XKLS:4707 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nestle Malaysia Bhd is a Malaysian investment holding company owned by Nestle. The business activities of the group are functioned through Food and beverages and Others segments which include Nutrition, Nestle Professional, Nestle Health Science and NESPRESSO. The Food and Beverages segment derives maximum revenue. The products offered by the group are related to dairy, beverages, food, Nestle Professional, Nestle Ice Cream, confectionery, chilled dairy, infant nutrition, and health science. The main geography is the domestic market, representing approximately maximum of total sales. The known brands are Nescafe, Maggi, Nespray, Kit Kat, and Milo.
87GF Score
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