Globaltec Formation BhdXKLS:5220 -2.30%40 Return-on-Tangible-Equity is 1.66% as of Mar. 2026, which is 18% below its 10-year median of 2.03. GuruFocus rates XKLS:5220 with a GF Score™ of 40/100 and a GF Value™ of RM0.40 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,283 Vehicles & Parts companies, Globaltec Formation Bhd ranks worse than 64.46% 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. Globaltec Formation Bhd's annualized net income for the quarter that ended in Mar. 2026 was RM3.1 Mil. Globaltec Formation Bhd's average shareholder tangible equity for the quarter that ended in Mar. 2026 was RM187.3 Mil. Therefore, Globaltec Formation Bhd's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 1.66%.
The historical rank and industry rank for Globaltec Formation Bhd's Return-on-Tangible-Equity or its related term are showing as below:
XKLS:5220'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -9.14 Med: 2.03 Max: 9.28
Current: 4
During the past 13 years, Globaltec Formation Bhd's highest Return-on-Tangible-Equity was 9.28%. The lowest was -9.14%. And the median was 2.03%.
XKLS:5220's Return-on-Tangible-Equity is ranked worse than 64.46% of 1283
companies
in the Vehicles & Parts industry
Industry Median: 7.49
vs XKLS:5220: 4.00
Globaltec Formation Bhd (XKLS:5220) 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.
Globaltec Formation Bhd Return-on-Tangible-Equity Related Terms
Globaltec Formation Bhd Return-on-Tangible-Equity Historical Data
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The historical data trend for Globaltec Formation 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.
Globaltec Formation Bhd Return-on-Tangible-Equity Chart
XKLS:5220 vs ORLY, AZO: Return-on-Tangible-Equity Comparison
For the Auto Parts subindustry, Globaltec Formation 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.
Globaltec Formation Bhd Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Globaltec Formation Bhd's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Globaltec Formation 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 1.66% mean?
Globaltec Formation Bhd (XKLS:5220) has a Return-on-Tangible-Equity of 1.66% 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 Globaltec Formation Bhd and its competitors. This is 18% below median its historical median of 2.03. According to the industry distribution chart, Globaltec Formation Bhd ranks #827 out of 1283 companies in the Vehicles & Parts industry, placing it in the top 64.5%.
Is Globaltec Formation Bhd's Return-on-Tangible-Equity too high?
Globaltec Formation Bhd's current Return-on-Tangible-Equity of 1.66% is 18% below median its 10-year median of 2.03. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.49. Globaltec Formation Bhd's value of 1.66% is 77.8% below this industry median. Based on the distribution chart, Globaltec Formation Bhd ranks #827 out of 1283 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Globaltec Formation Bhd has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Globaltec Formation Bhd's Return-on-Tangible-Equity compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Globaltec Formation Bhd ranks #827 out of 1283 companies for Return-on-Tangible-Equity. This places Globaltec Formation Bhd in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.49. Globaltec Formation Bhd's value of 1.66% is 77.8% below this benchmark. While the company's 10-year median is 2.03 vs. the industry median of 7.49, Globaltec Formation Bhd has consistently been below 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.49, based on 1,283 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. Globaltec Formation Bhd's current Return-on-Tangible-Equity of 1.66% is 77.8% below 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 Globaltec Formation Bhd and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Globaltec Formation Bhd's current Return-on-Tangible-Equity is 1.66%, which is 18% below median its own 10-year median of 2.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Globaltec Formation Bhd stock overvalued right now?
Based on GuruFocus' analysis, Globaltec Formation Bhd (XKLS:5220) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.40, compared to a current price of RM0.85 — trading 112.5% above its estimated fair value. The current Return-on-Tangible-Equity is 1.66%, which is 18% below median its 10-year median of 2.03 and 77.8% below the Vehicles & Parts industry median of 7.49. Globaltec Formation Bhd's overall GF Score™ is 40/100 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 Globaltec Formation Bhd (XKLS:5220), the current Return-on-Tangible-Equity is 1.66% 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 Globaltec Formation Bhd (XKLS:5220) Overvalued in 2026?
Based on GuruFocus' analysis, Globaltec Formation Bhd stock appears to be overvalued.
The current stock price of RM0.85 is trading 112.5% above its estimated GF Value™ of RM0.40.
GuruFocus considers Globaltec Formation Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:5220:
Return-on-Tangible-Equity: 1.66% (18% below median its 10-year median of 2.03)
GF Value™: RM0.40 vs. price of RM0.85 (112.5% above fair value)
Industry Position: 77.8% below the Vehicles & Parts median (#827 of 1283)
No single metric tells the full story. See the XKLS:5220 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Globaltec Formation Bhd is an auto parts manufacturer. Its business is divided into four reportable segments, namely Integrated Manufacturing Services (IMS), Resources, Energy, and Investment Holding. The IMS segment deals with designing and manufacturing automotive components, and it also consists of the precision machining, stamping, and tooling arm and the semiconductor division. The Resources segment includes the oil palm plantation and coal mining divisions. The Energy segment includes oil and gas exploration, production, and services. Lastly, the Investment Holding segment manages the company's investments in subsidiaries. The company generates the majority of its revenue from the IMS segment. Geographically, it derives key revenue from Malaysia.
40GF Score
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