Texchem Resources BhdXKLS:8702 -1.92%50 ROA % is 1.33% as of Mar. 2026, which is 2560% above its 10-year median of 0.05. GuruFocus rates XKLS:8702 with a GF Score™ of 50/100 and a GF Value™ of RM0.90 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 565 Conglomerates companies, Texchem Resources Bhd ranks worse than 68.14% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Texchem Resources Bhd's annualizedNet Income for the quarter that ended in Mar. 2026 was RM10 Mil.
Texchem Resources Bhd's average Total Assets over the quarter that ended in Mar. 2026 was RM774 Mil. Therefore, Texchem Resources Bhd's annualized ROA % for the quarter that ended in Mar. 2026 was 1.33%.
The historical rank and industry rank for Texchem Resources Bhd's ROA % or its related term are showing as below:
XKLS:8702'
s ROA % Range Over the Past 10 Years
Min: -1.46 Med: 0.05 Max: 3.57
Current: 0.67
During the past 13 years, Texchem Resources Bhd's highest ROA % was 3.57%. The lowest was -1.46%. And the median was 0.05%.
XKLS:8702's ROA % is ranked worse than 68.14% of 565
companies
in the Conglomerates industry
Industry Median: 2.46
vs XKLS:8702: 0.67
Texchem Resources Bhd (XKLS:8702) 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 Conglomerates subindustry, Texchem 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.
Texchem Resources Bhd ROA % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Texchem Resources Bhd's ROA % distribution charts can be found below:
* The bar in red indicates where Texchem 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.
Texchem Resources Bhd (XKLS:8702) has a ROA % of 1.33% 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 Texchem Resources Bhd and its competitors. This is 2560% above median its historical median of 0.05. According to the industry distribution chart, Texchem Resources Bhd ranks #385 out of 565 companies in the Conglomerates industry, placing it in the top 68.1%.
Is Texchem Resources Bhd's ROA % too high?
Texchem Resources Bhd's current ROA % of 1.33% is 2560% above median its 10-year median of 0.05. The Conglomerates industry median ROA % is 2.46. Texchem Resources Bhd's value of 1.33% is 45.9% below this industry median. Based on the distribution chart, Texchem Resources Bhd ranks #385 out of 565 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Texchem Resources Bhd has a GF Score™ of 50/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Texchem Resources Bhd's ROA % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Texchem Resources Bhd ranks #385 out of 565 companies for ROA %. This places Texchem Resources Bhd in the lower half of its industry. The industry median ROA % is 2.46. Texchem Resources Bhd's value of 1.33% is 45.9% below this benchmark. While the company's 10-year median is 0.05 vs. the industry median of 2.46, Texchem Resources 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 Conglomerates company?
The median ROA % among Conglomerates companies is 2.46, based on 565 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. Texchem Resources Bhd's current ROA % of 1.33% is 45.9% 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 Texchem Resources Bhd and its competitors. For the Conglomerates industry, the median ROA % is 2.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texchem Resources Bhd's current ROA % is 1.33%, which is 2560% above median its own 10-year median of 0.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Texchem Resources Bhd stock overvalued right now?
Based on GuruFocus' analysis, Texchem Resources Bhd (XKLS:8702) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.90, compared to a current price of RM0.77 — trading 15% below its estimated fair value. The current ROA % is 1.33%, which is 2560% above median its 10-year median of 0.05 and 45.9% below the Conglomerates industry median of 2.46. Texchem Resources Bhd's overall GF Score™ is 50/100 with 5 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 Texchem Resources Bhd (XKLS:8702), the current ROA % is 1.33% 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 Texchem Resources Bhd (XKLS:8702) Overvalued in 2026?
Based on GuruFocus' analysis, Texchem Resources Bhd stock appears to be undervalued.
The current stock price of RM0.77 is trading 15% below its estimated GF Value™ of RM0.90.
GuruFocus considers Texchem Resources Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:8702:
ROA %: 1.33% (2560% above median its 10-year median of 0.05)
GF Value™: RM0.90 vs. price of RM0.77 (15% below fair value)
Industry Position: 45.9% below the Conglomerates median (#385 of 565)
No single metric tells the full story. See the XKLS:8702 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Texchem Resources Bhd is an investment holding company. The company has five reportable segments: Industrial, Polymer Engineering, Food, Venture Business and Restaurant. The products under industrial segments are plastic resins, rubber/latex chemicals, PVC resins and additives, adhesive chemicals, food ingredients, dyestuff and textile auxiliaries. The polymer division designs new polymer solutions and designs for industries such as data storage industry, semiconductor, consumer electronics and electrical, telecommunications and life science industry. The restaurant division operates restaurant brands such as sushi king, Miraku, and Hoshino Coffee. The majority of revenue is derived from the Industrial segment. Geographically, the maximum revenue is generated from Malaysia.
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