ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. EA Holdings Bhd's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was 4.76%.
As of today (2026-07-08), EA Holdings Bhd's WACC % is 24.47%. EA Holdings Bhd's ROC % is 8.72% (calculated using TTM income statement data).
EA Holdings Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
EA Holdings Bhd (XKLS:0154) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, EA Holdings Bhd's WACC % is 24.47%. EA Holdings Bhd's ROC % is 8.72% (calculated using TTM income statement data).
EA Holdings Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of 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.
EA Holdings Bhd ROC % Related Terms
EA Holdings Bhd ROC % Historical Data
* Premium members only.
The historical data trend for EA Holdings Bhd's ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Feb. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
EA Holdings Bhd (XKLS:0154) has a ROC % of 4.76% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on EA Holdings Bhd and its competitors.
Is EA Holdings Bhd's ROC % too high?
EA Holdings Bhd's current ROC % is 4.76%. The Conglomerates industry median ROC % is 2.78. EA Holdings Bhd's value of 4.76% is 71.5% above this industry median.
How does EA Holdings Bhd's ROC % compare to HON and MMM?
EA Holdings Bhd's ROC % of 4.76% can be compared against companies in the Conglomerates industry. The industry median ROC % is 2.78. EA Holdings Bhd's value of 4.76% is 71.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Conglomerates company?
The median ROC % among Conglomerates companies is 2.78, based on 554 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. EA Holdings Bhd's current ROC % of 4.76% is 71.5% 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 % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on EA Holdings Bhd and its competitors. For the Conglomerates industry, the median ROC % is 2.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EA Holdings Bhd's current ROC % is 4.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EA Holdings Bhd stock overvalued right now?
Based on GuruFocus' analysis, EA Holdings Bhd (XKLS:0154) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.01, compared to a current price of RM0.01 — trading 50% below its estimated fair value. The current ROC % is 4.76% and 71.5% above the Conglomerates industry median of 2.78. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For EA Holdings Bhd (XKLS:0154), the current ROC % is 4.76% as of Feb. 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.
EA Holdings Bhd is principally engaged in investment holding, management, and consultancy services. The company's business segments are: i) ICT services: It is engaged in the provision of E-business software applications, business intelligence software, and development, IT service management consultancy, and system integration. ii) RFID system: It is engaged in Hardware system integration, mechanical and engineering services, and access control systems, iii) F&B distribution: It is engaged in the Sales and distribution of food and beverage products, and iv) Investment holding: Investment in subsidiaries. The company generates the majority of its revenue from the F&B distribution segment. All segments of the company operate in Malaysia.
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