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REDtone Digital BhdXKLS:0032 -1.25%50 ROC (Joel Greenblatt) % is 61.58% as of Jun. 2026, which is 5% above its 10-year median of 58.77. GuruFocus rates XKLS:0032 with a GF Score™ of 50/100 and a GF Value™ of RM0.38 (Fairly Valued). The stock has 8 warning signs investors should review. Among 370 Telecommunication Services companies, REDtone Digital Bhd ranks better than 86.22% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. REDtone Digital Bhd's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 61.58%.
The historical rank and industry rank for REDtone Digital Bhd's ROC (Joel Greenblatt) % or its related term are showing as below:
XKLS:0032'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -7.68 Med: 58.77 Max: 541.21
Current: 54.17
During the past 13 years, REDtone Digital Bhd's highest ROC (Joel Greenblatt) % was 541.21%. The lowest was -7.68%. And the median was 58.77%.
XKLS:0032's ROC (Joel Greenblatt) % is ranked better than 86.22% of 370
companies
in the Telecommunication Services industry
Industry Median: 17.03
vs XKLS:0032: 54.17
REDtone Digital Bhd's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -32.30% per year.
REDtone Digital Bhd (XKLS:0032) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
REDtone Digital Bhd ROC (Joel Greenblatt) % Related Terms
REDtone Digital Bhd ROC (Joel Greenblatt) % Historical Data
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The historical data trend for REDtone Digital Bhd's ROC (Joel Greenblatt) % 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.
XKLS:0032 vs VZ, TMUS, T: ROC (Joel Greenblatt) % Comparison
For the Telecom Services subindustry, REDtone Digital Bhd's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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.
REDtone Digital Bhd ROC (Joel Greenblatt) % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, REDtone Digital Bhd's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where REDtone Digital Bhd's ROC (Joel Greenblatt) % falls into.
REDtone Digital Bhd ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Jun. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 61.58% mean?
REDtone Digital Bhd (XKLS:0032) has a ROC (Joel Greenblatt) % of 61.58% as of Jun. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on REDtone Digital Bhd and its competitors. This is near median its historical median of 58.77. According to the industry distribution chart, REDtone Digital Bhd ranks #51 out of 370 companies in the Telecommunication Services industry, placing it in the top 13.8%.
Is REDtone Digital Bhd's ROC (Joel Greenblatt) % too high?
REDtone Digital Bhd's current ROC (Joel Greenblatt) % of 61.58% is near median its 10-year median of 58.77. The Telecommunication Services industry median ROC (Joel Greenblatt) % is 17.03. REDtone Digital Bhd's value of 61.58% is 261.6% above this industry median. Based on the distribution chart, REDtone Digital Bhd ranks #51 out of 370 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, REDtone Digital Bhd has a GF Score™ of 50/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does REDtone Digital Bhd's ROC (Joel Greenblatt) % compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, REDtone Digital Bhd ranks #51 out of 370 companies for ROC (Joel Greenblatt) %. This places REDtone Digital Bhd in the top 14% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 17.03. REDtone Digital Bhd's value of 61.58% is 261.6% above this benchmark. While the company's 10-year median is 58.77 vs. the industry median of 17.03, REDtone Digital 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 ROC (Joel Greenblatt) % for a Telecommunication Services company?
The median ROC (Joel Greenblatt) % among Telecommunication Services companies is 17.03, based on 370 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. REDtone Digital Bhd's current ROC (Joel Greenblatt) % of 61.58% is 261.6% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on REDtone Digital Bhd and its competitors. For the Telecommunication Services industry, the median ROC (Joel Greenblatt) % is 17.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REDtone Digital Bhd's current ROC (Joel Greenblatt) % is 61.58%, which is near median its own 10-year median of 58.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REDtone Digital Bhd stock overvalued right now?
Based on GuruFocus' analysis, REDtone Digital Bhd (XKLS:0032) is currently considered Fairly Valued. The stock's GF Value™ is RM0.38, compared to a current price of RM0.40 — trading 3.9% above its estimated fair value. The current ROC (Joel Greenblatt) % is 61.58%, which is near median its 10-year median of 58.77 and 261.6% above the Telecommunication Services industry median of 17.03. REDtone Digital Bhd's overall GF Score™ is 50/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For REDtone Digital Bhd (XKLS:0032), the current ROC (Joel Greenblatt) % is 61.58% as of Jun. 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 REDtone Digital Bhd (XKLS:0032) Overvalued in 2026?
Based on GuruFocus' analysis, REDtone Digital Bhd stock appears to be overvalued.
The current stock price of RM0.40 is trading 3.9% above its estimated GF Value™ of RM0.38.
GuruFocus considers REDtone Digital Bhd to be Fairly Valued.
Key valuation signals for XKLS:0032:
ROC (Joel Greenblatt) %: 61.58% (near median its 10-year median of 58.77)
GF Value™: RM0.38 vs. price of RM0.40 (3.9% above fair value)
Industry Position: 261.6% above the Telecommunication Services median (#51 of 370)
No single metric tells the full story. See the XKLS:0032 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
REDtone Digital Bhd is a digital infrastructure and services provider operating through three segments: Telecommunication Services, offering data, managed network services, Cloud PBX, SIP Trunking, managed cybersecurity, and Starlink satellite connectivity; Managed Telecommunications Network Services, strengthening Malaysia's digital infrastructure in underserved and rural areas, supporting initiatives like Kampung Tanpa Wayar, Time-3, and JENDELA; and Cloud, Artificial Intelligence, and Internet of Things, providing cloud-first, AI-powered, and IoT-enabled solutions including AI Agents, smart farming, and SaaS CRM platforms. The company generates majority of its revenue from the Managed Telecommunications Network Services segment and operates in Malaysia.
50GF Score
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