ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Smart Asia Chemical Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 8.91%.
As of today (2026-07-03), Smart Asia Chemical Bhd's WACC % is 8.42%. Smart Asia Chemical Bhd's ROC % is 2.71% (calculated using TTM income statement data).
Smart Asia Chemical Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Smart Asia Chemical Bhd (XKLS:0306) 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, Smart Asia Chemical Bhd's WACC % is 8.42%. Smart Asia Chemical Bhd's ROC % is 2.71% (calculated using TTM income statement data).
Smart Asia Chemical 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.
Smart Asia Chemical Bhd (XKLS:0306) has a ROC % of 8.91% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Smart Asia Chemical Bhd and its competitors.
Is Smart Asia Chemical Bhd's ROC % too high?
Smart Asia Chemical Bhd's current ROC % is 8.91%. The Chemicals industry median ROC % is 4.46. Smart Asia Chemical Bhd's value of 8.91% is 99.8% above this industry median. Overall, Smart Asia Chemical Bhd has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does Smart Asia Chemical Bhd's ROC % compare to LIN and SHW?
Smart Asia Chemical Bhd's ROC % of 8.91% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.46. Smart Asia Chemical Bhd's value of 8.91% is 99.8% 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 Chemicals company?
The median ROC % among Chemicals companies is 4.46, based on 1,580 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. Smart Asia Chemical Bhd's current ROC % of 8.91% is 99.8% 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 Smart Asia Chemical Bhd and its competitors. For the Chemicals industry, the median ROC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smart Asia Chemical Bhd's current ROC % is 8.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smart Asia Chemical Bhd stock overvalued right now?
Smart Asia Chemical Bhd (XKLS:0306) has a current ROC % of 8.91%. The current ROC % is 8.91% and 99.8% above the Chemicals industry median of 4.46. Smart Asia Chemical Bhd's overall GF Score™ is 31/100 with 7 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 Smart Asia Chemical Bhd (XKLS:0306), the current ROC % is 8.91% 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.
Smart Asia Chemical Bhd is an investment holding company. Through its subsidiaries, it is involved in the development, manufacturing, distribution, and sale of decorative paints and protective coatings for household and industrial applications. Also involved in the development, manufacturing, distribution and sale of related products, namely colourants, and binding and coating chemicals; sale and trading of painting tools and accessories, aerosol spray paints and other related products to complement decorative paints and protective coatings offerings, ODM services of decorative paints, protective coatings as well as binding and coating chemicals for third party brand owners. Company has three segments manufacturing, sale and trading and other.
31GF Score
Get the complete analysis for XKLS:0306
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:0306 has been successfully added to your 
