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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 5E Resources Holdings Bhd's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 28.49%.
As of today (2026-08-09), 5E Resources Holdings Bhd's WACC % is 10.50%. 5E Resources Holdings Bhd's ROC % is 28.49% (calculated using TTM income statement data).
5E Resources Holdings 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.
5E Resources Holdings Bhd (XKLS:0397) 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, 5E Resources Holdings Bhd's WACC % is 10.50%. 5E Resources Holdings Bhd's ROC % is 28.49% (calculated using TTM income statement data).
5E Resources Holdings 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 one times the annual (Dec. 2024) 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.
5E Resources Holdings Bhd (XKLS:0397) has a ROC % of 28.49% as of Dec. 2024. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on 5E Resources Holdings Bhd and its competitors.
Is 5E Resources Holdings Bhd's ROC % too high?
5E Resources Holdings Bhd's current ROC % is 28.49%. The Waste Management industry median ROC % is 3.67. 5E Resources Holdings Bhd's value of 28.49% is 677.4% above this industry median. Overall, 5E Resources Holdings Bhd has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does 5E Resources Holdings Bhd's ROC % compare to WM and RSG?
5E Resources Holdings Bhd's ROC % of 28.49% can be compared against companies in the Waste Management industry. The industry median ROC % is 3.67. 5E Resources Holdings Bhd's value of 28.49% is 677.4% 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 Waste Management company?
The median ROC % among Waste Management companies is 3.67, based on 246 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. 5E Resources Holdings Bhd's current ROC % of 28.49% is 677.4% 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 5E Resources Holdings Bhd and its competitors. For the Waste Management industry, the median ROC % is 3.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. 5E Resources Holdings Bhd's current ROC % is 28.49%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is 5E Resources Holdings Bhd stock overvalued right now?
5E Resources Holdings Bhd (XKLS:0397) has a current ROC % of 28.49%. The current ROC % is 28.49% and 677.4% above the Waste Management industry median of 3.67. 5E Resources Holdings Bhd's overall GF Score™ is 19/100. 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 5E Resources Holdings Bhd (XKLS:0397), the current ROC % is 28.49% as of Dec. 2024. 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.
5E Resources Holdings Bhd is an investment holding company. Through its subsidiaries, the company is principally involved in the provision of scheduled waste management services, supply of recovered and recycled products, and trading of chemicals and other products. It operates in three main reportable segments as follows: (i) Scheduled waste management services, (ii) Supply of recovered and recycled products, and (iii) Trading of chemicals and other products. TH emajority of the company's revenue is derived from the Scheduled waste management services segment, which include Testing, Collection, Recovery and recycling of waste. Geographically, the company operates predominantly in Malaysia.
19GF Score
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