Melati Ehsan Holdings Bhd (XKLS:5129) ROA %: 0.12% (As of May. 2026) — 84% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

XKLS:5129 Melati Ehsan Holdings Bhd XKLS:5129
55 GF Score
Price RM0.49
GF Value RM1.84
Valuation Possible Value Trap
! 7 Warning Signs
View Full Analysis

What is Melati Ehsan Holdings Bhd ROA %?

Melati Ehsan Holdings Bhd XKLS:5129 55 ROA % is 0.12% as of May. 2026, which is 84% below its 10-year median of 0.74. GuruFocus rates XKLS:5129 with a GF Score™ of 55/100 and a GF Value™ of RM1.84 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,781 Construction companies, Melati Ehsan Holdings Bhd ranks worse than 71.93% on this metric.

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Melati Ehsan Holdings Bhd's annualized Net Income for the quarter that ended in May. 2026 was RM0.6 Mil. Melati Ehsan Holdings Bhd's average Total Assets over the quarter that ended in May. 2026 was RM513.9 Mil. Therefore, Melati Ehsan Holdings Bhd's annualized ROA % for the quarter that ended in May. 2026 was 0.12%.

The historical rank and industry rank for Melati Ehsan Holdings Bhd's ROA % or its related term are showing as below:

XKLS:5129' s ROA % Range Over the Past 10 Years
Min: 0.25   Med: 0.74   Max: 9.81
Current: 0.26

During the past 13 years, Melati Ehsan Holdings Bhd's highest ROA % was 9.81%. The lowest was 0.25%. And the median was 0.74%.

XKLS:5129's ROA % is ranked worse than
71.93% of 1781 companies
in the Construction industry
Industry Median: 2.86 vs XKLS:5129: 0.26

Melati Ehsan Holdings Bhd  (XKLS:5129) 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 bank’s 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:

ROA %(Q: May. 2026 )
=Net Income/Total Assets
=0.64/513.9295
=(Net Income / Revenue)*(Revenue / Total Assets)
=(0.64 / 240.86)*(240.86 / 513.9295)
=Net Margin %*Asset Turnover
=0.27 %*0.4687
=0.12 %

Note: The Net Income data used here is four times the quarterly (May. 2026) net income data. The Revenue data used here is four times the quarterly (May. 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.


Melati Ehsan Holdings Bhd ROA % Related Terms


Melati Ehsan Holdings Bhd ROA % Historical Data

* Premium members only.

The historical data trend for Melati Ehsan Holdings 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.

Melati Ehsan Holdings Bhd ROA % Chart

Melati Ehsan Holdings Bhd Annual Data
Trend Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.59 4.62 3.99 2.04 0.25

Melati Ehsan Holdings Bhd Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.12 0.68 0.13 0.12 0.12

XKLS:5129 vs PWR, FIX, EME: ROA % Comparison

For the Engineering & Construction subindustry, Melati Ehsan Holdings 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.


Melati Ehsan Holdings Bhd ROA % vs Construction Industry

For the Construction industry and Industrials sector, Melati Ehsan Holdings Bhd's ROA % distribution charts can be found below:

* The bar in red indicates where Melati Ehsan Holdings Bhd's ROA % falls into.


XKLS:5129
55GF Score
Melati Ehsan Holdings Bhd XKLS:5129
ROA % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Melati Ehsan Holdings Bhd ROA % Calculation

Melati Ehsan Holdings Bhd's annualized ROA % for the fiscal year that ended in Aug. 2025 is calculated as:

ROA %=Net Income (A: Aug. 2025 )/( (Total Assets (A: Aug. 2024 )+Total Assets (A: Aug. 2025 ))/ count )
=1.119/( (399.126+491.4)/ 2 )
=1.119/445.263
=0.25 %

Melati Ehsan Holdings Bhd's annualized ROA % for the quarter that ended in May. 2026 is calculated as:

ROA %=Net Income (Q: May. 2026 )/( (Total Assets (Q: Feb. 2026 )+Total Assets (Q: May. 2026 ))/ count )
=0.64/( (509.466+518.393)/ 2 )
=0.64/513.9295
=0.12 %

* 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 (May. 2026) net income data. ROA % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROA % →
What does a ROA % of 0.12% mean?
Melati Ehsan Holdings Bhd (XKLS:5129) has a ROA % of 0.12% as of May. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Melati Ehsan Holdings Bhd and its competitors. This is 84% below median its historical median of 0.74. Over the past decade, Melati Ehsan Holdings Bhd's ROA % has ranged from 0.25 to 9.81. According to the industry distribution chart, Melati Ehsan Holdings Bhd ranks #1281 out of 1781 companies in the Construction industry, placing it in the top 71.9%.
Is Melati Ehsan Holdings Bhd's ROA % too high?
Melati Ehsan Holdings Bhd's current ROA % of 0.12% is 84% below median its 10-year median of 0.74. Over the past 10 years, this metric has ranged from a low of 0.25 to a high of 9.81. The Construction industry median ROA % is 2.86. Melati Ehsan Holdings Bhd's value of 0.12% is 95.8% below this industry median. Based on the distribution chart, Melati Ehsan Holdings Bhd ranks #1281 out of 1781 companies in the Construction industry, which is below the industry midpoint. Overall, Melati Ehsan Holdings Bhd has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Melati Ehsan Holdings Bhd's ROA % compare to PWR and FIX?
According to the Construction industry distribution chart, Melati Ehsan Holdings Bhd ranks #1281 out of 1781 companies for ROA %. This places Melati Ehsan Holdings Bhd in the lower half of its industry. The industry median ROA % is 2.86. Melati Ehsan Holdings Bhd's value of 0.12% is 95.8% below this benchmark. Historically, Melati Ehsan Holdings Bhd's own ROA % has ranged from 0.25 to 9.81 over the past decade. While the company's 10-year median is 0.74 vs. the industry median of 2.86, Melati Ehsan Holdings 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 ROA % for a Construction company?
The median ROA % among Construction companies is 2.86, based on 1,781 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. Melati Ehsan Holdings Bhd's current ROA % of 0.12% is 95.8% 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 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 Melati Ehsan Holdings Bhd and its competitors. For the Construction industry, the median ROA % is 2.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melati Ehsan Holdings Bhd's current ROA % is 0.12%, which is 84% below median its own 10-year median of 0.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Melati Ehsan Holdings Bhd stock overvalued right now?
Based on GuruFocus' analysis, Melati Ehsan Holdings Bhd (XKLS:5129) is currently considered Possible Value Trap. The stock's GF Value™ is RM1.84, compared to a current price of RM0.49 — trading 73.4% below its estimated fair value. The current ROA % is 0.12%, which is 84% below median its 10-year median of 0.74 and 95.8% below the Construction industry median of 2.86. Melati Ehsan Holdings Bhd's overall GF Score™ is 55/100 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 Melati Ehsan Holdings Bhd (XKLS:5129), the current ROA % is 0.12% as of May. 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 Melati Ehsan Holdings Bhd (XKLS:5129) Overvalued in 2026?

Based on GuruFocus' analysis, Melati Ehsan Holdings Bhd stock appears to be undervalued. The current stock price of RM0.49 is trading 73.4% below its estimated GF Value™ of RM1.84. GuruFocus considers Melati Ehsan Holdings Bhd to be Possible Value Trap.

Key valuation signals for XKLS:5129:

  • ROA %: 0.12% (84% below median its 10-year median of 0.74)
  • GF Value™: RM1.84 vs. price of RM0.49 (73.4% below fair value)
  • GF Score™: 55/100 with 7 warning signs
  • Industry Position: 95.8% below the Construction median (#1281 of 1781)

No single metric tells the full story. See the XKLS:5129 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Melati Ehsan Holdings Bhd Business Description

Address No. 5, Jalan Titiwangsa, Kuala Lumpur, SGR, MYS, 53200
Melati Ehsan Holdings Bhd is a Malaysia-based investment holding company. The principal activities of the company include turnkey contracting, property development, trading of construction materials, rental of machinery, and money-lending services. The Group's reporting segments comprise the Construction segment, which includes turnkey construction activities; the Trading segment, which includes the trading of construction materials and rental of machinery; and the Property Development segment, which relates to the development of residential and commercial properties. The company operates principally in Malaysia and generates the majority of its revenue from the Construction segment.
55GF Score

Get the complete analysis for XKLS:5129

ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

RM0.49
Price
RM1.84
GF Value