Nestle Malaysia BhdXKLS:4707 +0.23%88 ROA % is 22.87% as of Mar. 2026, which is 16% above its 10-year median of 19.64. GuruFocus rates XKLS:4707 with a GF Score™ of 88/100 and a GF Value™ of RM116.82 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,990 Consumer Packaged Goods companies, Nestle Malaysia Bhd ranks better than 92.61% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Nestle Malaysia Bhd's annualizedNet Income for the quarter that ended in Mar. 2026 was RM820 Mil.
Nestle Malaysia Bhd's average Total Assets over the quarter that ended in Mar. 2026 was RM3,588 Mil. Therefore, Nestle Malaysia Bhd's annualized ROA % for the quarter that ended in Mar. 2026 was 22.87%.
The historical rank and industry rank for Nestle Malaysia Bhd's ROA % or its related term are showing as below:
XKLS:4707'
s ROA % Range Over the Past 10 Years
Min: 11.51 Med: 19.64 Max: 25.15
Current: 15.34
During the past 13 years, Nestle Malaysia Bhd's highest ROA % was 25.15%. The lowest was 11.51%. And the median was 19.64%.
XKLS:4707's ROA % is ranked better than 92.61% of 1990
companies
in the Consumer Packaged Goods industry
Industry Median: 3.245
vs XKLS:4707: 15.34
Nestle Malaysia Bhd (XKLS:4707) ROA % Explanation
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.
Nestle Malaysia Bhd ROA % Related Terms
Nestle Malaysia Bhd ROA % Historical Data
* Premium members only.
The historical data trend for Nestle Malaysia 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 Packaged Foods subindustry, Nestle Malaysia 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.
Nestle Malaysia Bhd ROA % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle Malaysia Bhd's ROA % distribution charts can be found below:
* The bar in red indicates where Nestle Malaysia 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.
Nestle Malaysia Bhd (XKLS:4707) has a ROA % of 22.87% 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 Nestle Malaysia Bhd and its competitors. This is 16% above median its historical median of 19.64. Over the past decade, Nestle Malaysia Bhd's ROA % has ranged from 11.51 to 25.15. According to the industry distribution chart, Nestle Malaysia Bhd ranks #147 out of 1990 companies in the Consumer Packaged Goods industry, placing it in the top 7.4%.
Is Nestle Malaysia Bhd's ROA % too high?
Nestle Malaysia Bhd's current ROA % of 22.87% is 16% above median its 10-year median of 19.64. Over the past 10 years, this metric has ranged from a low of 11.51 to a high of 25.15. The Consumer Packaged Goods industry median ROA % is 3.25. Nestle Malaysia Bhd's value of 22.87% is 604.8% above this industry median. Based on the distribution chart, Nestle Malaysia Bhd ranks #147 out of 1990 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Nestle Malaysia Bhd has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nestle Malaysia Bhd's ROA % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Nestle Malaysia Bhd ranks #147 out of 1990 companies for ROA %. This places Nestle Malaysia Bhd in the top 7% of its industry — outperforming the majority of peers. The industry median ROA % is 3.25. Nestle Malaysia Bhd's value of 22.87% is 604.8% above this benchmark. Historically, Nestle Malaysia Bhd's own ROA % has ranged from 11.51 to 25.15 over the past decade. While the company's 10-year median is 19.64 vs. the industry median of 3.25, Nestle Malaysia 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 Consumer Packaged Goods company?
The median ROA % among Consumer Packaged Goods companies is 3.25, based on 1,990 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. Nestle Malaysia Bhd's current ROA % of 22.87% is 604.8% 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 Nestle Malaysia Bhd and its competitors. For the Consumer Packaged Goods industry, the median ROA % is 3.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nestle Malaysia Bhd's current ROA % is 22.87%, which is 16% above median its own 10-year median of 19.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nestle Malaysia Bhd stock overvalued right now?
Based on GuruFocus' analysis, Nestle Malaysia Bhd (XKLS:4707) is currently considered Modestly Undervalued. The stock's GF Value™ is RM116.82, compared to a current price of RM95.84 — trading 18% below its estimated fair value. The current ROA % is 22.87%, which is 16% above median its 10-year median of 19.64 and 604.8% above the Consumer Packaged Goods industry median of 3.25. Nestle Malaysia Bhd's overall GF Score™ is 88/100 with 4 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 Nestle Malaysia Bhd (XKLS:4707), the current ROA % is 22.87% 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 Nestle Malaysia Bhd (XKLS:4707) Overvalued in 2026?
Based on GuruFocus' analysis, Nestle Malaysia Bhd stock appears to be undervalued.
The current stock price of RM95.84 is trading 18% below its estimated GF Value™ of RM116.82.
GuruFocus considers Nestle Malaysia Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:4707:
ROA %: 22.87% (16% above median its 10-year median of 19.64)
GF Value™: RM116.82 vs. price of RM95.84 (18% below fair value)
Industry Position: 604.8% above the Consumer Packaged Goods median (#147 of 1990)
No single metric tells the full story. See the XKLS:4707 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nestle Malaysia Bhd is a Malaysian investment holding company owned by Nestle. The business activities of the group are functioned through Food and beverages and Others segments which include Nutrition, Nestle Professional, Nestle Health Science and NESPRESSO. The Food and Beverages segment derives maximum revenue. The products offered by the group are related to dairy, beverages, food, Nestle Professional, Nestle Ice Cream, confectionery, chilled dairy, infant nutrition, and health science. The main geography is the domestic market, representing approximately maximum of total sales. The known brands are Nescafe, Maggi, Nespray, Kit Kat, and Milo.
88GF Score
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