ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. SFP Tech Holdings Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 5.44%.
As of today (2026-06-27), SFP Tech Holdings Bhd's WACC % is 2.25%. SFP Tech Holdings Bhd's ROC % is 0.00% (calculated using TTM income statement data).
SFP Tech Holdings Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
SFP Tech Holdings Bhd (XKLS:0251) 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, SFP Tech Holdings Bhd's WACC % is 2.25%. SFP Tech Holdings Bhd's ROC % is 0.00% (calculated using TTM income statement data).
SFP Tech 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.
* 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 (Mar. 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.
SFP Tech Holdings Bhd (XKLS:0251) has a ROC % of 5.44% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on SFP Tech Holdings Bhd and its competitors.
Is SFP Tech Holdings Bhd's ROC % too high?
SFP Tech Holdings Bhd's current ROC % is 5.44%. The Industrial Products industry median ROC % is 5.23. SFP Tech Holdings Bhd's value of 5.44% is 4.1% above this industry median. Overall, SFP Tech Holdings Bhd has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does SFP Tech Holdings Bhd's ROC % compare to ATI and CRS?
SFP Tech Holdings Bhd's ROC % of 5.44% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.23. SFP Tech Holdings Bhd's value of 5.44% is 4.1% 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 an Industrial Products company?
The median ROC % among Industrial Products companies is 5.23, based on 3,040 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. SFP Tech Holdings Bhd's current ROC % of 5.44% is 4.1% 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 SFP Tech Holdings Bhd and its competitors. For the Industrial Products industry, the median ROC % is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SFP Tech Holdings Bhd's current ROC % is 5.44%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SFP Tech Holdings Bhd stock overvalued right now?
Based on GuruFocus' analysis, SFP Tech Holdings Bhd (XKLS:0251) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.55, compared to a current price of RM0.29 — trading 47.3% below its estimated fair value. The current ROC % is 5.44% and 4.1% above the Industrial Products industry median of 5.23. SFP Tech Holdings Bhd's overall GF Score™ is 58/100 with 9 warning signs to review. 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 SFP Tech Holdings Bhd (XKLS:0251), the current ROC % is 5.44% 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 SFP Tech Holdings Bhd (XKLS:0251) Overvalued in 2026?
Based on GuruFocus' analysis, SFP Tech Holdings Bhd stock appears to be undervalued.
The current stock price of RM0.29 is trading 47.3% below its estimated GF Value™ of RM0.55.
GuruFocus considers SFP Tech Holdings Bhd to be Possible Value Trap.
Key valuation signals for XKLS:0251:
ROC %: 5.44%
GF Value™: RM0.55 vs. price of RM0.29 (47.3% below fair value)
Industry Position: 4.1% above the Industrial Products median
No single metric tells the full story. See the XKLS:0251 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AddressPenang Science Park, MK13, Plot 322, Lorong Perindustrian Bukit Minyak 20, Kawasan Perindustrian Bukit Minyak, Bukit Mertajam, Seberang Perai Tengah, Seberang Perai, PNG, MYS, 14100
SFP Tech Holdings Bhd is a Malaysia-based integrated one-stop automation equipment solution and engineering supporting service provider. The company, along with its subsidiaries, provides engineering services ranging from customized sheet metal fabrication, precision CNC machining, to mechanical assembly and manufacturing services for its customers who are predominantly in the semiconductor, E&E, Solar PV, medical, and EMS industries. The group's reportable segments are Manufacturing and Automation. A majority of its revenue is generated from the Manufacturing segment, which represents the sales of precision machined parts and components, fabricated metal products, and mechanically assembled products. Geographically, it derives maximum revenue from Malaysia.
58GF Score
Get the complete analysis for XKLS:0251
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XKLS:0251 has been successfully added to your 
