ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. SNS Network Technology Bhd's annualized return on capital (ROC %) for the quarter that ended in Apr. 2026 was 3.68%.
As of today (2026-07-07), SNS Network Technology Bhd's WACC % is 11.24%. SNS Network Technology Bhd's ROC % is 12.31% (calculated using TTM income statement data).
SNS Network Technology Bhd generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
SNS Network Technology Bhd (XKLS:0259) 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, SNS Network Technology Bhd's WACC % is 11.24%. SNS Network Technology Bhd's ROC % is 12.31% (calculated using TTM income statement data).
SNS Network Technology Bhd generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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 (Apr. 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.
SNS Network Technology Bhd (XKLS:0259) has a ROC % of 3.68% as of Apr. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on SNS Network Technology Bhd and its competitors.
Is SNS Network Technology Bhd's ROC % too high?
SNS Network Technology Bhd's current ROC % is 3.68%. The Hardware industry median ROC % is 4.12. SNS Network Technology Bhd's value of 3.68% is 10.7% below this industry median. Overall, SNS Network Technology Bhd has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SNS Network Technology Bhd's ROC % compare to SNX and ARW?
SNS Network Technology Bhd's ROC % of 3.68% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. SNS Network Technology Bhd's value of 3.68% is 10.7% below 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 Hardware company?
The median ROC % among Hardware companies is 4.12, based on 2,442 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. SNS Network Technology Bhd's current ROC % of 3.68% is 10.7% 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 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 SNS Network Technology Bhd and its competitors. For the Hardware industry, the median ROC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SNS Network Technology Bhd's current ROC % is 3.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SNS Network Technology Bhd stock overvalued right now?
Based on GuruFocus' analysis, SNS Network Technology Bhd (XKLS:0259) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.70, compared to a current price of RM0.50 — trading 29.3% below its estimated fair value. The current ROC % is 3.68% and 10.7% below the Hardware industry median of 4.12. SNS Network Technology Bhd's overall GF Score™ is 63/100 with 5 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 SNS Network Technology Bhd (XKLS:0259), the current ROC % is 3.68% as of Apr. 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 SNS Network Technology Bhd (XKLS:0259) Overvalued in 2026?
Based on GuruFocus' analysis, SNS Network Technology Bhd stock appears to be undervalued.
The current stock price of RM0.50 is trading 29.3% below its estimated GF Value™ of RM0.70.
GuruFocus considers SNS Network Technology Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:0259:
ROC %: 3.68%
GF Value™: RM0.70 vs. price of RM0.50 (29.3% below fair value)
Industry Position: 10.7% below the Hardware median
No single metric tells the full story. See the XKLS:0259 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SNS Network Technology Bhd is an investment holding company. Along with its subsidiaries, it is engaged in the provision of Information Communication Technology (ICT) products, services and solutions. It is organised into 3 main reportable segments as follows: i) Sale of ICT products - comprising hardware, devices and related peripherals, as well as the provision of ICT services and solutions. ii) Provision of device repair and broadband services - provision of device repair and related services and sale of broadband services. and iii) Investment holding - dividend income. The majority of the company's revenue is derived from the Sale of ICT products segment. Geographically, the maximum revenue is generated from Malaysia, followed by Hong Kong, Maldives, Singapore, and others.
63GF Score
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