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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 %. Eckem Holdings Bhd's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 7.24%.
As of today (2026-07-27), Eckem Holdings Bhd's WACC % is 8.13%. Eckem Holdings Bhd's ROC % is 7.24% (calculated using TTM income statement data).
Eckem Holdings Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Eckem Holdings Bhd (XKLS:0463) 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, Eckem Holdings Bhd's WACC % is 8.13%. Eckem Holdings Bhd's ROC % is 7.24% (calculated using TTM income statement data).
Eckem 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.
Eckem Holdings Bhd ROC % Related Terms
Eckem Holdings Bhd ROC % Historical Data
* Premium members only.
The historical data trend for Eckem Holdings 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 one times the annual (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.
Eckem Holdings Bhd (XKLS:0463) has a ROC % of 7.24% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Eckem Holdings Bhd and its competitors.
Is Eckem Holdings Bhd's ROC % too high?
Eckem Holdings Bhd's current ROC % is 7.24%. The Chemicals industry median ROC % is 4.48. Eckem Holdings Bhd's value of 7.24% is 61.6% above this industry median. Overall, Eckem Holdings Bhd has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Eckem Holdings Bhd's ROC % compare to LIN and SHW?
Eckem Holdings Bhd's ROC % of 7.24% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.48. Eckem Holdings Bhd's value of 7.24% is 61.6% 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 4.48, based on 1,578 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. Eckem Holdings Bhd's current ROC % of 7.24% is 61.6% 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 Eckem Holdings Bhd and its competitors. For the Chemicals industry, the median ROC % is 4.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eckem Holdings Bhd's current ROC % is 7.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eckem Holdings Bhd stock overvalued right now?
Eckem Holdings Bhd (XKLS:0463) has a current ROC % of 7.24%. The current ROC % is 7.24% and 61.6% above the Chemicals industry median of 4.48. Eckem Holdings Bhd's overall GF Score™ is 10/100 with 4 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 Eckem Holdings Bhd (XKLS:0463), the current ROC % is 7.24% 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.
Eckem Holdings Bhd is an investment holding company. Through its subsidiaries, the company is principally focused on the distribution, sales and application formulation of specialty industrial chemical products as well as manufacturing and trading of rubber products. Its offerings include Additives, Resins, Pigments, Fillers, and Rubber Products. The company has two reportable segments as follows: (i) Trading - involved in distribution, sales and application formulation of specialty industrial chemical products, and (ii) Manufacturing - involved in manufacturing and trading of rubber products. The majority of the company's revenue is derived from the Trading segment. Geographically, the company operates predominantly in Malaysia.
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