ELK-Desa Resources BhdXKLS:5228 85 ROA % is 3.96% as of Mar. 2026, which is 24% below its 10-year median of 5.19. GuruFocus rates XKLS:5228 with a GF Score™ of 85/100 and a GF Value™ of RM1.41 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 545 Credit Services companies, ELK-Desa Resources Bhd ranks better than 70.64% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. ELK-Desa Resources Bhd's annualizedNet Income for the quarter that ended in Mar. 2026 was RM35.4 Mil.
ELK-Desa Resources Bhd's average Total Assets over the quarter that ended in Mar. 2026 was RM892.7 Mil. Therefore, ELK-Desa Resources Bhd's annualized ROA % for the quarter that ended in Mar. 2026 was 3.96%.
The historical rank and industry rank for ELK-Desa Resources Bhd's ROA % or its related term are showing as below:
XKLS:5228'
s ROA % Range Over the Past 10 Years
Min: 3.54 Med: 5.19 Max: 7.49
Current: 3.54
During the past 13 years, ELK-Desa Resources Bhd's highest ROA % was 7.49%. The lowest was 3.54%. And the median was 5.19%.
XKLS:5228's ROA % is ranked better than 70.64% of 545
companies
in the Credit Services industry
Industry Median: 1.92
vs XKLS:5228: 3.54
ELK-Desa Resources Bhd (XKLS:5228) 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.
* 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 Credit Services subindustry, ELK-Desa Resources 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.
ELK-Desa Resources Bhd ROA % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, ELK-Desa Resources Bhd's ROA % distribution charts can be found below:
* The bar in red indicates where ELK-Desa Resources 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.
ELK-Desa Resources Bhd (XKLS:5228) has a ROA % of 3.96% 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 ELK-Desa Resources Bhd and its competitors. This is 24% below median its historical median of 5.19. Over the past decade, ELK-Desa Resources Bhd's ROA % has ranged from 3.54 to 7.49. According to the industry distribution chart, ELK-Desa Resources Bhd ranks #160 out of 545 companies in the Credit Services industry, placing it in the top 29.4%.
Is ELK-Desa Resources Bhd's ROA % too high?
ELK-Desa Resources Bhd's current ROA % of 3.96% is 24% below median its 10-year median of 5.19. Over the past 10 years, this metric has ranged from a low of 3.54 to a high of 7.49. The Credit Services industry median ROA % is 1.92. ELK-Desa Resources Bhd's value of 3.96% is 106.3% above this industry median. Based on the distribution chart, ELK-Desa Resources Bhd ranks #160 out of 545 companies in the Credit Services industry, which is above the industry midpoint. Overall, ELK-Desa Resources Bhd has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ELK-Desa Resources Bhd's ROA % compare to V and MA?
According to the Credit Services industry distribution chart, ELK-Desa Resources Bhd ranks #160 out of 545 companies for ROA %. This puts ELK-Desa Resources Bhd in the upper half of its industry. The industry median ROA % is 1.92. ELK-Desa Resources Bhd's value of 3.96% is 106.3% above this benchmark. Historically, ELK-Desa Resources Bhd's own ROA % has ranged from 3.54 to 7.49 over the past decade. While the company's 10-year median is 5.19 vs. the industry median of 1.92, ELK-Desa 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 ROA % for a Credit Services company?
The median ROA % among Credit Services companies is 1.92, based on 545 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. ELK-Desa Resources Bhd's current ROA % of 3.96% is 106.3% 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 ELK-Desa Resources Bhd and its competitors. For the Credit Services industry, the median ROA % is 1.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ELK-Desa Resources Bhd's current ROA % is 3.96%, which is 24% below median its own 10-year median of 5.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ELK-Desa Resources Bhd stock overvalued right now?
Based on GuruFocus' analysis, ELK-Desa Resources Bhd (XKLS:5228) is currently considered Modestly Undervalued. The stock's GF Value™ is RM1.41, compared to a current price of RM1.01 — trading 28.4% below its estimated fair value. The current ROA % is 3.96%, which is 24% below median its 10-year median of 5.19 and 106.3% above the Credit Services industry median of 1.92. ELK-Desa Resources Bhd's overall GF Score™ is 85/100 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 ELK-Desa Resources Bhd (XKLS:5228), the current ROA % is 3.96% 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 ELK-Desa Resources Bhd (XKLS:5228) Overvalued in 2026?
Based on GuruFocus' analysis, ELK-Desa Resources Bhd stock appears to be undervalued.
The current stock price of RM1.01 is trading 28.4% below its estimated GF Value™ of RM1.41.
GuruFocus considers ELK-Desa Resources Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:5228:
ROA %: 3.96% (24% below median its 10-year median of 5.19)
GF Value™: RM1.41 vs. price of RM1.01 (28.4% below fair value)
Industry Position: 106.3% above the Credit Services median (#160 of 545)
No single metric tells the full story. See the XKLS:5228 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ELK-Desa Resources Bhd is a Malaysian company investment holding company. The company's business segments are Hire-purchase financing and other integrated services and the Trading of furniture. The Hire-purchase financing and other integrated services segment is involved in the business of hire-purchase financing for used motor vehicles as well as selling general insurance policies as an insurance agent and the Trading of furniture segment is involved in the business of trading, export, wholesaling, and manufacturing of furniture. The company earns the majority of its revenue from hire-purchase financing.
85GF Score
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