ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. EVD Bhd's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 12.40%.
As of today (2026-06-25), EVD Bhd's WACC % is 3.17%. EVD Bhd's ROC % is 0.20% (calculated using TTM income statement data).
EVD Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
EVD Bhd (XKLS:0174) 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, EVD Bhd's WACC % is 3.17%. EVD Bhd's ROC % is 0.20% (calculated using TTM income statement data).
EVD 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.
EVD Bhd ROC % Related Terms
EVD Bhd ROC % Historical Data
* Premium members only.
The historical data trend for EVD 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 (Dec. 2025) 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.
EVD Bhd (XKLS:0174) has a ROC % of 12.40% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on EVD Bhd and its competitors.
Is EVD Bhd's ROC % too high?
EVD Bhd's current ROC % is 12.40%. The Software industry median ROC % is 3.12. EVD Bhd's value of 12.40% is 297.4% above this industry median.
How does EVD Bhd's ROC % compare to CRM and SHOP?
EVD Bhd's ROC % of 12.40% can be compared against companies in the Software industry. The industry median ROC % is 3.12. EVD Bhd's value of 12.40% is 297.4% 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 Software company?
The median ROC % among Software companies is 3.12, based on 2,828 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. EVD Bhd's current ROC % of 12.40% is 297.4% 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 EVD Bhd and its competitors. For the Software industry, the median ROC % is 3.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EVD Bhd's current ROC % is 12.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EVD Bhd stock overvalued right now?
Based on GuruFocus' analysis, EVD Bhd (XKLS:0174) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.09, compared to a current price of RM0.04 — trading 61.1% below its estimated fair value. The current ROC % is 12.40% and 297.4% above the Software industry median of 3.12. 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 EVD Bhd (XKLS:0174), the current ROC % is 12.40% as of Dec. 2025. 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.
EVD Bhd is an investment holding company. The company operates through five main reportable segments: Transportation which is involved in the service rendered under railway and highway industries. Healthcare segment is involved in the service rendered in the hospitality and healthcare industry. Extra Low Voltage Integrated Solution (ELV) segment involved of the service rendered under smart building and security services. Other Engineering services segment involved of the service rendered under M&E and structured cabling works. All other segment is involved in the investment holding and service and maintenance. The majority of the revenue was generated from the Transportation segment. Geographically, it derives maximum revenue from Malaysia and also has its presence in Philippines.
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