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. Velesto Energy Bhd's annualized net income for the quarter that ended in Mar. 2026 was RM111.4 Mil. Velesto Energy Bhd's average shareholder tangible equity for the quarter that ended in Mar. 2026 was RM2,405.5 Mil. Therefore, Velesto Energy Bhd's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 4.63%.
The historical rank and industry rank for Velesto Energy Bhd's Return-on-Tangible-Equity or its related term are showing as below:
XKLS:5243'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -44.93 Med: -2.36 Max: 8.23
Current: 7.16
During the past 13 years, Velesto Energy Bhd's highest Return-on-Tangible-Equity was 8.23%. The lowest was -44.93%. And the median was -2.36%.
XKLS:5243's Return-on-Tangible-Equity is ranked better than 51.38% of 944
companies
in the Oil & Gas industry
Industry Median: 6.73
vs XKLS:5243: 7.16
Velesto Energy Bhd (XKLS:5243) 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.
Velesto Energy Bhd Return-on-Tangible-Equity Related Terms
Velesto Energy Bhd Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Velesto Energy 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.
Velesto Energy Bhd Return-on-Tangible-Equity Chart
XKLS:5243 vs NE, RIG, VAL: Return-on-Tangible-Equity Comparison
For the Oil & Gas Drilling subindustry, Velesto Energy 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.
Velesto Energy Bhd Return-on-Tangible-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Velesto Energy Bhd's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Velesto Energy 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 4.63% mean?
Velesto Energy Bhd (XKLS:5243) has a Return-on-Tangible-Equity of 4.63% 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 Velesto Energy Bhd and its competitors. According to the industry distribution chart, Velesto Energy Bhd ranks #459 out of 944 companies in the Oil & Gas industry, placing it in the top 48.6%.
Is Velesto Energy Bhd's Return-on-Tangible-Equity too high?
Velesto Energy Bhd's current Return-on-Tangible-Equity is 4.63%. The Oil & Gas industry median Return-on-Tangible-Equity is 6.73. Velesto Energy Bhd's value of 4.63% is 31.2% below this industry median. Based on the distribution chart, Velesto Energy Bhd ranks #459 out of 944 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Velesto Energy Bhd has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Velesto Energy Bhd's Return-on-Tangible-Equity compare to NE and RIG?
According to the Oil & Gas industry distribution chart, Velesto Energy Bhd ranks #459 out of 944 companies for Return-on-Tangible-Equity. This puts Velesto Energy Bhd in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.73. Velesto Energy Bhd's value of 4.63% is 31.2% below this benchmark. 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 an Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 6.73, based on 944 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. Velesto Energy Bhd's current Return-on-Tangible-Equity of 4.63% is 31.2% 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 Velesto Energy Bhd and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 6.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velesto Energy Bhd's current Return-on-Tangible-Equity is 4.63%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Velesto Energy Bhd stock overvalued right now?
Based on GuruFocus' analysis, Velesto Energy Bhd (XKLS:5243) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.18, compared to a current price of RM0.29 — trading 58.3% above its estimated fair value. The current Return-on-Tangible-Equity is 4.63% and 31.2% below the Oil & Gas industry median of 6.73. Velesto Energy Bhd's overall GF Score™ is 55/100 with 3 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 Velesto Energy Bhd (XKLS:5243), the current Return-on-Tangible-Equity is 4.63% 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 Velesto Energy Bhd (XKLS:5243) Overvalued in 2026?
Based on GuruFocus' analysis, Velesto Energy Bhd stock appears to be overvalued.
The current stock price of RM0.29 is trading 58.3% above its estimated GF Value™ of RM0.18.
GuruFocus considers Velesto Energy Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:5243:
Return-on-Tangible-Equity: 4.63%
GF Value™: RM0.18 vs. price of RM0.29 (58.3% above fair value)
Industry Position: 31.2% below the Oil & Gas median (#459 of 944)
No single metric tells the full story. See the XKLS:5243 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Velesto Energy Bhd is a Malaysia-based company that provides services to the oil and gas industry. It is engaged in the provision of drilling services for exploration, development, and production wells and workover services to the upstream sector of the oil and gas industry. It is also engaged in the provision of threading, inspection, and repair services for Oil Country Tubular Goods in Malaysia and overseas. The company operates under two segments, namely drilling services and others. The company has a geographical presence in Malaysia and other countries.
55GF Score
Get the complete analysis for XKLS:5243
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XKLS:5243 has been successfully added to your 
