Texchem Resources BhdXKLS:8702 -1.95%52 Return-on-Tangible-Equity is 7.75% as of Mar. 2026, which is 10971% above its 10-year median of 0.07. GuruFocus rates XKLS:8702 with a GF Score™ of 52/100 and a GF Value™ of RM0.90 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 551 Conglomerates companies, Texchem Resources Bhd ranks worse than 64.07% 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. Texchem Resources Bhd's annualized net income for the quarter that ended in Mar. 2026 was RM10 Mil. Texchem Resources Bhd's average shareholder tangible equity for the quarter that ended in Mar. 2026 was RM133 Mil. Therefore, Texchem Resources Bhd's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 7.75%.
The historical rank and industry rank for Texchem Resources Bhd's Return-on-Tangible-Equity or its related term are showing as below:
XKLS:8702'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -8.43 Med: 0.07 Max: 12.61
Current: 4.09
During the past 13 years, Texchem Resources Bhd's highest Return-on-Tangible-Equity was 12.61%. The lowest was -8.43%. And the median was 0.07%.
XKLS:8702's Return-on-Tangible-Equity is ranked worse than 64.07% of 551
companies
in the Conglomerates industry
Industry Median: 7.48
vs XKLS:8702: 4.09
Texchem Resources Bhd (XKLS:8702) 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.
Texchem Resources Bhd Return-on-Tangible-Equity Related Terms
Texchem Resources Bhd Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Texchem Resources 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.
Texchem Resources Bhd Return-on-Tangible-Equity Chart
XKLS:8702 vs HON, MMM: Return-on-Tangible-Equity Comparison
For the Conglomerates subindustry, Texchem Resources 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.
Texchem Resources Bhd Return-on-Tangible-Equity vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Texchem Resources Bhd's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Texchem Resources 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 7.75% mean?
Texchem Resources Bhd (XKLS:8702) has a Return-on-Tangible-Equity of 7.75% 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 Texchem Resources Bhd and its competitors. This is 10971% above median its historical median of 0.07. According to the industry distribution chart, Texchem Resources Bhd ranks #353 out of 551 companies in the Conglomerates industry, placing it in the top 64.1%.
Is Texchem Resources Bhd's Return-on-Tangible-Equity too high?
Texchem Resources Bhd's current Return-on-Tangible-Equity of 7.75% is 10971% above median its 10-year median of 0.07. The Conglomerates industry median Return-on-Tangible-Equity is 7.48. Texchem Resources Bhd's value of 7.75% is 3.6% above this industry median. Based on the distribution chart, Texchem Resources Bhd ranks #353 out of 551 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Texchem Resources 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 Texchem Resources Bhd's Return-on-Tangible-Equity compare to HON and MMM?
According to the Conglomerates industry distribution chart, Texchem Resources Bhd ranks #353 out of 551 companies for Return-on-Tangible-Equity. This places Texchem Resources Bhd in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.48. Texchem Resources Bhd's value of 7.75% is 3.6% above this benchmark. While the company's 10-year median is 0.07 vs. the industry median of 7.48, Texchem Resources 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 Conglomerates company?
The median Return-on-Tangible-Equity among Conglomerates companies is 7.48, based on 551 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. Texchem Resources Bhd's current Return-on-Tangible-Equity of 7.75% is 3.6% 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 Texchem Resources Bhd and its competitors. For the Conglomerates industry, the median Return-on-Tangible-Equity is 7.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texchem Resources Bhd's current Return-on-Tangible-Equity is 7.75%, which is 10971% above median its own 10-year median of 0.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Texchem Resources Bhd stock overvalued right now?
Based on GuruFocus' analysis, Texchem Resources Bhd (XKLS:8702) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.90, compared to a current price of RM0.76 — trading 16.1% below its estimated fair value. The current Return-on-Tangible-Equity is 7.75%, which is 10971% above median its 10-year median of 0.07 and 3.6% above the Conglomerates industry median of 7.48. Texchem Resources Bhd's overall GF Score™ is 52/100 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 Texchem Resources Bhd (XKLS:8702), the current Return-on-Tangible-Equity is 7.75% 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 Texchem Resources Bhd (XKLS:8702) Overvalued in 2026?
Based on GuruFocus' analysis, Texchem Resources Bhd stock appears to be undervalued.
The current stock price of RM0.76 is trading 16.1% below its estimated GF Value™ of RM0.90.
GuruFocus considers Texchem Resources Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:8702:
Return-on-Tangible-Equity: 7.75% (10971% above median its 10-year median of 0.07)
GF Value™: RM0.90 vs. price of RM0.76 (16.1% below fair value)
Industry Position: 3.6% above the Conglomerates median (#353 of 551)
No single metric tells the full story. See the XKLS:8702 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Texchem Resources Bhd is an investment holding company. The company has five reportable segments: Industrial, Polymer Engineering, Food, Venture Business and Restaurant. The products under industrial segments are plastic resins, rubber/latex chemicals, PVC resins and additives, adhesive chemicals, food ingredients, dyestuff and textile auxiliaries. The polymer division designs new polymer solutions and designs for industries such as data storage industry, semiconductor, consumer electronics and electrical, telecommunications and life science industry. The restaurant division operates restaurant brands such as sushi king, Miraku, and Hoshino Coffee. The majority of revenue is derived from the Industrial segment. Geographically, the maximum revenue is generated from Malaysia.
52GF Score
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