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Luxchem BhdXKLS:5143 52 Return-on-Tangible-Equity is 12.64% as of Mar. 2026, which is 18% below its 10-year median of 15.45. GuruFocus rates XKLS:5143 with a GF Score™ of 52/100 and a GF Value™ of RM0.46 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,569 Chemicals companies, Luxchem Bhd ranks better than 71.77% 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. Luxchem Bhd's annualized net income for the quarter that ended in Mar. 2026 was RM52.8 Mil. Luxchem Bhd's average shareholder tangible equity for the quarter that ended in Mar. 2026 was RM418.1 Mil. Therefore, Luxchem Bhd's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 12.64%.
The historical rank and industry rank for Luxchem Bhd's Return-on-Tangible-Equity or its related term are showing as below:
XKLS:5143'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.34 Med: 15.45 Max: 22.9
Current: 10.94
During the past 13 years, Luxchem Bhd's highest Return-on-Tangible-Equity was 22.90%. The lowest was 10.34%. And the median was 15.45%.
XKLS:5143's Return-on-Tangible-Equity is ranked better than 71.77% of 1569
companies
in the Chemicals industry
Industry Median: 5.73
vs XKLS:5143: 10.94
Luxchem Bhd (XKLS:5143) 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.
Luxchem Bhd Return-on-Tangible-Equity Related Terms
Luxchem Bhd Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Luxchem 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:5143 vs DOW: Return-on-Tangible-Equity Comparison
For the Chemicals subindustry, Luxchem 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.
Luxchem Bhd Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Luxchem Bhd's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Luxchem 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 12.64% mean?
Luxchem Bhd (XKLS:5143) has a Return-on-Tangible-Equity of 12.64% 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 Luxchem Bhd and its competitors. This is 18% below median its historical median of 15.45. Over the past decade, Luxchem Bhd's Return-on-Tangible-Equity has ranged from 10.34 to 22.90. According to the industry distribution chart, Luxchem Bhd ranks #443 out of 1569 companies in the Chemicals industry, placing it in the top 28.2%.
Is Luxchem Bhd's Return-on-Tangible-Equity too high?
Luxchem Bhd's current Return-on-Tangible-Equity of 12.64% is 18% below median its 10-year median of 15.45. Over the past 10 years, this metric has ranged from a low of 10.34 to a high of 22.90. The Chemicals industry median Return-on-Tangible-Equity is 5.73. Luxchem Bhd's value of 12.64% is 120.6% above this industry median. Based on the distribution chart, Luxchem Bhd ranks #443 out of 1569 companies in the Chemicals industry, which is above the industry midpoint. Overall, Luxchem Bhd has a GF Score™ of 52/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Luxchem Bhd's Return-on-Tangible-Equity compare to DOW?
According to the Chemicals industry distribution chart, Luxchem Bhd ranks #443 out of 1569 companies for Return-on-Tangible-Equity. This puts Luxchem Bhd in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.73. Luxchem Bhd's value of 12.64% is 120.6% above this benchmark. Historically, Luxchem Bhd's own Return-on-Tangible-Equity has ranged from 10.34 to 22.90 over the past decade. While the company's 10-year median is 15.45 vs. the industry median of 5.73, Luxchem 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 Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.73, based on 1,569 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. Luxchem Bhd's current Return-on-Tangible-Equity of 12.64% is 120.6% 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 Luxchem Bhd and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luxchem Bhd's current Return-on-Tangible-Equity is 12.64%, which is 18% below median its own 10-year median of 15.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luxchem Bhd stock overvalued right now?
Based on GuruFocus' analysis, Luxchem Bhd (XKLS:5143) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.46, compared to a current price of RM0.41 — trading 10.9% below its estimated fair value. The current Return-on-Tangible-Equity is 12.64%, which is 18% below median its 10-year median of 15.45 and 120.6% above the Chemicals industry median of 5.73. Luxchem Bhd's overall GF Score™ is 52/100 with 2 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 Luxchem Bhd (XKLS:5143), the current Return-on-Tangible-Equity is 12.64% 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.
Is Luxchem Bhd (XKLS:5143) Overvalued in 2026?
Based on GuruFocus' analysis, Luxchem Bhd stock appears to be undervalued.
The current stock price of RM0.41 is trading 10.9% below its estimated GF Value™ of RM0.46.
GuruFocus considers Luxchem Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:5143:
Return-on-Tangible-Equity: 12.64% (18% below median its 10-year median of 15.45)
GF Value™: RM0.46 vs. price of RM0.41 (10.9% below fair value)
Industry Position: 120.6% above the Chemicals median (#443 of 1569)
No single metric tells the full story. See the XKLS:5143 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luxchem Corp Bhd is a Malaysia-based company engaged in the import, export, and distribution of petrochemical and other related products globally. It operates through two reportable segments, namely Trading and Manufacturing. Maximum revenue is generated from the Trading segment, which is engaged in the import, export, and distribution of petrochemical and other related products, and in the trading of hardware and other materials required for interior decoration, construction, and development. The Manufacturing segment is involved in the manufacturing and trading of unsaturated polyester resin, latex chemical dispersions, latex processing chemicals, former cleaning, powder-free coagulant, and related products. Geographically, the Group derives maximum revenue from Malaysia.
52GF Score
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