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REDtone Digital BhdXKLS:0032 +1.61%49 ROA % is 2.99% as of Mar. 2026, which is 47% below its 10-year median of 5.60. GuruFocus rates XKLS:0032 with a GF Score™ of 49/100 and a GF Value™ of RM0.84 (Significantly Undervalued). The stock has 8 warning signs investors should review. Among 367 Telecommunication Services companies, REDtone Digital Bhd ranks worse than 66.21% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. REDtone Digital Bhd's annualizedNet Income for the quarter that ended in Mar. 2026 was RM11.4 Mil.
REDtone Digital Bhd's average Total Assets over the quarter that ended in Mar. 2026 was RM381.8 Mil. Therefore, REDtone Digital Bhd's annualized ROA % for the quarter that ended in Mar. 2026 was 2.99%.
The historical rank and industry rank for REDtone Digital Bhd's ROA % or its related term are showing as below:
XKLS:0032'
s ROA % Range Over the Past 10 Years
Min: -2.12 Med: 5.6 Max: 15.87
Current: 0.75
During the past 13 years, REDtone Digital Bhd's highest ROA % was 15.87%. The lowest was -2.12%. And the median was 5.60%.
XKLS:0032's ROA % is ranked worse than 66.21% of 367
companies
in the Telecommunication Services industry
Industry Median: 2.73
vs XKLS:0032: 0.75
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
REDtone Digital Bhd ROA % Related Terms
REDtone Digital Bhd ROA % Historical Data
* Premium members only.
The historical data trend for REDtone Digital Bhd's ROA % 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.
For the Telecom Services subindustry, REDtone Digital Bhd's ROA %, along with its competitors' market caps and ROA % 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.
REDtone Digital Bhd ROA % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, REDtone Digital Bhd's ROA % distribution charts can be found below:
* The bar in red indicates where REDtone Digital Bhd's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
REDtone Digital Bhd (XKLS:0032) has a ROA % of 2.99% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on REDtone Digital Bhd and its competitors. This is 47% below median its historical median of 5.60. According to the industry distribution chart, REDtone Digital Bhd ranks #243 out of 367 companies in the Telecommunication Services industry, placing it in the top 66.2%.
Is REDtone Digital Bhd's ROA % too high?
REDtone Digital Bhd's current ROA % of 2.99% is 47% below median its 10-year median of 5.60. The Telecommunication Services industry median ROA % is 2.73. REDtone Digital Bhd's value of 2.99% is 9.5% above this industry median. Based on the distribution chart, REDtone Digital Bhd ranks #243 out of 367 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, REDtone Digital Bhd has a GF Score™ of 49/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does REDtone Digital Bhd's ROA % compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, REDtone Digital Bhd ranks #243 out of 367 companies for ROA %. This places REDtone Digital Bhd in the lower half of its industry. The industry median ROA % is 2.73. REDtone Digital Bhd's value of 2.99% is 9.5% above this benchmark. While the company's 10-year median is 5.60 vs. the industry median of 2.73, REDtone Digital 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 ROA % for a Telecommunication Services company?
The median ROA % among Telecommunication Services companies is 2.73, based on 367 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. REDtone Digital Bhd's current ROA % of 2.99% is 9.5% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on REDtone Digital Bhd and its competitors. For the Telecommunication Services industry, the median ROA % is 2.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REDtone Digital Bhd's current ROA % is 2.99%, which is 47% below median its own 10-year median of 5.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REDtone Digital Bhd stock overvalued right now?
Based on GuruFocus' analysis, REDtone Digital Bhd (XKLS:0032) is currently considered Significantly Undervalued. The stock's GF Value™ is RM0.84, compared to a current price of RM0.32 — trading 62.5% below its estimated fair value. The current ROA % is 2.99%, which is 47% below median its 10-year median of 5.60 and 9.5% above the Telecommunication Services industry median of 2.73. REDtone Digital Bhd's overall GF Score™ is 49/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For REDtone Digital Bhd (XKLS:0032), the current ROA % is 2.99% 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 REDtone Digital Bhd (XKLS:0032) Overvalued in 2026?
Based on GuruFocus' analysis, REDtone Digital Bhd stock appears to be undervalued.
The current stock price of RM0.32 is trading 62.5% below its estimated GF Value™ of RM0.84.
GuruFocus considers REDtone Digital Bhd to be Significantly Undervalued.
Key valuation signals for XKLS:0032:
ROA %: 2.99% (47% below median its 10-year median of 5.60)
GF Value™: RM0.84 vs. price of RM0.32 (62.5% below fair value)
Industry Position: 9.5% above the Telecommunication Services median (#243 of 367)
No single metric tells the full story. See the XKLS:0032 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
REDtone Digital Bhd is a digital infrastructure and services provider operating through three segments: Telecommunication Services, offering data, managed network services, Cloud PBX, SIP Trunking, managed cybersecurity, and Starlink satellite connectivity; Managed Telecommunications Network Services, strengthening Malaysia's digital infrastructure in underserved and rural areas, supporting initiatives like Kampung Tanpa Wayar, Time-3, and JENDELA; and Cloud, Artificial Intelligence, and Internet of Things, providing cloud-first, AI-powered, and IoT-enabled solutions including AI Agents, smart farming, and SaaS CRM platforms. The company generates majority of its revenue from the Managed Telecommunications Network Services segment and operates in Malaysia.
49GF Score
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