Hong Leong Capital BhdXKLS:5274 -0.31%58 Return-on-Tangible-Equity is 4.06% as of Mar. 2026, which is 59% below its 10-year median of 9.81. GuruFocus rates XKLS:5274 with a GF Score™ of 58/100 and a GF Value™ of RM3.62 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 779 Capital Markets companies, Hong Leong Capital Bhd ranks worse than 50.06% 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. Hong Leong Capital Bhd's annualized net income for the quarter that ended in Mar. 2026 was RM40.3 Mil. Hong Leong Capital Bhd's average shareholder tangible equity for the quarter that ended in Mar. 2026 was RM993.1 Mil. Therefore, Hong Leong Capital Bhd's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 4.06%.
The historical rank and industry rank for Hong Leong Capital Bhd's Return-on-Tangible-Equity or its related term are showing as below:
XKLS:5274'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.44 Med: 9.81 Max: 23.57
Current: 6.52
During the past 13 years, Hong Leong Capital Bhd's highest Return-on-Tangible-Equity was 23.57%. The lowest was 5.44%. And the median was 9.81%.
XKLS:5274's Return-on-Tangible-Equity is ranked worse than 50.06% of 779
companies
in the Capital Markets industry
Industry Median: 6.52
vs XKLS:5274: 6.52
Hong Leong Capital Bhd (XKLS:5274) 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.
Hong Leong Capital Bhd Return-on-Tangible-Equity Related Terms
Hong Leong Capital Bhd Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hong Leong Capital 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.
Hong Leong Capital Bhd Return-on-Tangible-Equity Chart
XKLS:5274 vs MS, GS, SCHW: Return-on-Tangible-Equity Comparison
For the Capital Markets subindustry, Hong Leong Capital 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.
Hong Leong Capital Bhd Return-on-Tangible-Equity vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Hong Leong Capital Bhd's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hong Leong Capital 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 4.06% mean?
Hong Leong Capital Bhd (XKLS:5274) has a Return-on-Tangible-Equity of 4.06% 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 Hong Leong Capital Bhd and its competitors. This is 59% below median its historical median of 9.81. Over the past decade, Hong Leong Capital Bhd's Return-on-Tangible-Equity has ranged from 5.44 to 23.57. According to the industry distribution chart, Hong Leong Capital Bhd ranks #390 out of 779 companies in the Capital Markets industry, placing it in the top 50.1%.
Is Hong Leong Capital Bhd's Return-on-Tangible-Equity too high?
Hong Leong Capital Bhd's current Return-on-Tangible-Equity of 4.06% is 59% below median its 10-year median of 9.81. Over the past 10 years, this metric has ranged from a low of 5.44 to a high of 23.57. The Capital Markets industry median Return-on-Tangible-Equity is 6.52. Hong Leong Capital Bhd's value of 4.06% is 37.7% below this industry median. Based on the distribution chart, Hong Leong Capital Bhd ranks #390 out of 779 companies in the Capital Markets industry, which is below the industry midpoint. Overall, Hong Leong Capital Bhd has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hong Leong Capital Bhd's Return-on-Tangible-Equity compare to MS and GS?
According to the Capital Markets industry distribution chart, Hong Leong Capital Bhd ranks #390 out of 779 companies for Return-on-Tangible-Equity. This places Hong Leong Capital Bhd in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.52. Hong Leong Capital Bhd's value of 4.06% is 37.7% below this benchmark. Historically, Hong Leong Capital Bhd's own Return-on-Tangible-Equity has ranged from 5.44 to 23.57 over the past decade. While the company's 10-year median is 9.81 vs. the industry median of 6.52, Hong Leong Capital 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 Capital Markets company?
The median Return-on-Tangible-Equity among Capital Markets companies is 6.52, based on 779 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. Hong Leong Capital Bhd's current Return-on-Tangible-Equity of 4.06% is 37.7% 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 Hong Leong Capital Bhd and its competitors. For the Capital Markets industry, the median Return-on-Tangible-Equity is 6.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Leong Capital Bhd's current Return-on-Tangible-Equity is 4.06%, which is 59% below median its own 10-year median of 9.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Leong Capital Bhd stock overvalued right now?
Based on GuruFocus' analysis, Hong Leong Capital Bhd (XKLS:5274) is currently considered Modestly Undervalued. The stock's GF Value™ is RM3.62, compared to a current price of RM3.17 — trading 12.4% below its estimated fair value. The current Return-on-Tangible-Equity is 4.06%, which is 59% below median its 10-year median of 9.81 and 37.7% below the Capital Markets industry median of 6.52. Hong Leong Capital Bhd's overall GF Score™ is 58/100 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 Hong Leong Capital Bhd (XKLS:5274), the current Return-on-Tangible-Equity is 4.06% 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 Hong Leong Capital Bhd (XKLS:5274) Overvalued in 2026?
Based on GuruFocus' analysis, Hong Leong Capital Bhd stock appears to be undervalued.
The current stock price of RM3.17 is trading 12.4% below its estimated GF Value™ of RM3.62.
GuruFocus considers Hong Leong Capital Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:5274:
Return-on-Tangible-Equity: 4.06% (59% below median its 10-year median of 9.81)
GF Value™: RM3.62 vs. price of RM3.17 (12.4% below fair value)
Industry Position: 37.7% below the Capital Markets median (#390 of 779)
No single metric tells the full story. See the XKLS:5274 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hong Leong Capital Bhd is an investment holding company. Along with its subsidiaries, it offers various financial services in the areas of investment banking, stockbroking, futures broking, nominees and custodian services, unit trust and fund management, and related financial services, and investment management services. The group's operating business segments are: Investment banking and stockbroking, Fund management and unit trust management, and Investment holding and others. The majority of its revenue is generated from the Investment banking and stockbroking segment. Geographically, the group operates only in Malaysia.
58GF Score
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