Edaran BhdXKLS:5036 66 ROA % is 2.20% as of Mar. 2026, which is 50% above its 10-year median of 1.47. GuruFocus rates XKLS:5036 with a GF Score™ of 66/100 and a GF Value™ of RM1.54 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 2,878 Software companies, Edaran Bhd ranks better than 53.06% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Edaran Bhd's annualizedNet Income for the quarter that ended in Mar. 2026 was RM3.8 Mil.
Edaran Bhd's average Total Assets over the quarter that ended in Mar. 2026 was RM171.6 Mil. Therefore, Edaran Bhd's annualized ROA % for the quarter that ended in Mar. 2026 was 2.20%.
The historical rank and industry rank for Edaran Bhd's ROA % or its related term are showing as below:
XKLS:5036'
s ROA % Range Over the Past 10 Years
Min: -8.63 Med: 1.47 Max: 9.11
Current: 2.35
During the past 13 years, Edaran Bhd's highest ROA % was 9.11%. The lowest was -8.63%. And the median was 1.47%.
XKLS:5036's ROA % is ranked better than 53.06% of 2878
companies
in the Software industry
Industry Median: 1.675
vs XKLS:5036: 2.35
Edaran Bhd (XKLS:5036) 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.
Edaran Bhd ROA % Related Terms
Edaran Bhd ROA % Historical Data
* Premium members only.
The historical data trend for Edaran 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 Information Technology Services subindustry, Edaran 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.
Edaran Bhd ROA % vs Software Industry
For the Software industry and Technology sector, Edaran Bhd's ROA % distribution charts can be found below:
* The bar in red indicates where Edaran 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.
Edaran Bhd (XKLS:5036) has a ROA % of 2.20% 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 Edaran Bhd and its competitors. This is 50% above median its historical median of 1.47. According to the industry distribution chart, Edaran Bhd ranks #1351 out of 2878 companies in the Software industry, placing it in the top 46.9%.
Is Edaran Bhd's ROA % too high?
Edaran Bhd's current ROA % of 2.20% is 50% above median its 10-year median of 1.47. The Software industry median ROA % is 1.68. Edaran Bhd's value of 2.20% is 31.3% above this industry median. Based on the distribution chart, Edaran Bhd ranks #1351 out of 2878 companies in the Software industry, which is above the industry midpoint. Overall, Edaran Bhd has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Edaran Bhd's ROA % compare to IBM and ACN?
According to the Software industry distribution chart, Edaran Bhd ranks #1351 out of 2878 companies for ROA %. This puts Edaran Bhd in the upper half of its industry. The industry median ROA % is 1.68. Edaran Bhd's value of 2.20% is 31.3% above this benchmark. While the company's 10-year median is 1.47 vs. the industry median of 1.68, Edaran 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 Software company?
The median ROA % among Software companies is 1.68, based on 2,878 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. Edaran Bhd's current ROA % of 2.20% is 31.3% 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 Edaran Bhd and its competitors. For the Software industry, the median ROA % is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Edaran Bhd's current ROA % is 2.20%, which is 50% above median its own 10-year median of 1.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Edaran Bhd stock overvalued right now?
Based on GuruFocus' analysis, Edaran Bhd (XKLS:5036) is currently considered Modestly Undervalued. The stock's GF Value™ is RM1.54, compared to a current price of RM1.16 — trading 24.7% below its estimated fair value. The current ROA % is 2.20%, which is 50% above median its 10-year median of 1.47 and 31.3% above the Software industry median of 1.68. Edaran Bhd's overall GF Score™ is 66/100 with 7 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 Edaran Bhd (XKLS:5036), the current ROA % is 2.20% 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 Edaran Bhd (XKLS:5036) Overvalued in 2026?
Based on GuruFocus' analysis, Edaran Bhd stock appears to be undervalued.
The current stock price of RM1.16 is trading 24.7% below its estimated GF Value™ of RM1.54.
GuruFocus considers Edaran Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:5036:
ROA %: 2.20% (50% above median its 10-year median of 1.47)
GF Value™: RM1.54 vs. price of RM1.16 (24.7% below fair value)
Industry Position: 31.3% above the Software median (#1351 of 2878)
No single metric tells the full story. See the XKLS:5036 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Edaran Bhd is an investment holding company. Along with its subsidiaries, it is engaged in the following reportable segments: Information technology and services, Telecommunications, Investment holding, and Lifestyle. Information technology includes provisioning, installation, commissioning, integration, and maintenance of information technology products and related services. The Telecommunication segment includes provisioning, installation, commissioning, and maintenance of power supply equipment for telecommunication systems and integration and maintenance of telecommunication equipment, and the Lifestyle segment involves lifestyle activities. The company derives its key revenue from the Information technology services segment. Geographically, all of its revenue is derived from Malaysia.
66GF Score
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