ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. UEM Edgenta Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 7.68%.
As of today (2026-07-06), UEM Edgenta Bhd's WACC % is 6.97%. UEM Edgenta Bhd's ROC % is 11.39% (calculated using TTM income statement data).
UEM Edgenta 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.
UEM Edgenta Bhd (XKLS:1368) 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, UEM Edgenta Bhd's WACC % is 6.97%. UEM Edgenta Bhd's ROC % is 11.39% (calculated using TTM income statement data).
UEM Edgenta 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.
UEM Edgenta Bhd ROC % Related Terms
UEM Edgenta Bhd ROC % Historical Data
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The historical data trend for UEM Edgenta 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 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.
UEM Edgenta Bhd (XKLS:1368) has a ROC % of 7.68% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on UEM Edgenta Bhd and its competitors.
Is UEM Edgenta Bhd's ROC % too high?
UEM Edgenta Bhd's current ROC % is 7.68%. The Construction industry median ROC % is 4.67. UEM Edgenta Bhd's value of 7.68% is 64.5% above this industry median. Overall, UEM Edgenta Bhd has a GF Score™ of 41/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does UEM Edgenta Bhd's ROC % compare to PWR and FIX?
UEM Edgenta Bhd's ROC % of 7.68% can be compared against companies in the Construction industry. The industry median ROC % is 4.67. UEM Edgenta Bhd's value of 7.68% is 64.5% 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 Construction company?
The median ROC % among Construction companies is 4.67, based on 1,751 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. UEM Edgenta Bhd's current ROC % of 7.68% is 64.5% 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 UEM Edgenta Bhd and its competitors. For the Construction industry, the median ROC % is 4.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. UEM Edgenta Bhd's current ROC % is 7.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is UEM Edgenta Bhd stock overvalued right now?
Based on GuruFocus' analysis, UEM Edgenta Bhd (XKLS:1368) is currently considered Modestly Overvalued. The stock's GF Value™ is RM0.91, compared to a current price of RM1.10 — trading 20.9% above its estimated fair value. The current ROC % is 7.68% and 64.5% above the Construction industry median of 4.67. UEM Edgenta Bhd's overall GF Score™ is 41/100 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 UEM Edgenta Bhd (XKLS:1368), the current ROC % is 7.68% 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 UEM Edgenta Bhd (XKLS:1368) Overvalued in 2026?
Based on GuruFocus' analysis, UEM Edgenta Bhd stock appears to be overvalued.
The current stock price of RM1.10 is trading 20.9% above its estimated GF Value™ of RM0.91.
GuruFocus considers UEM Edgenta Bhd to be Modestly Overvalued.
Key valuation signals for XKLS:1368:
ROC %: 7.68%
GF Value™: RM0.91 vs. price of RM1.10 (20.9% above fair value)
Industry Position: 64.5% above the Construction median
No single metric tells the full story. See the XKLS:1368 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
UEM Edgenta Bhd engages in the provision of management services. It operates in the following segments: Asset Management: Healthcare Support and Property & Facility Solutions (PFS); Infrastructure Solutions: Asset Consultancy and Infrastructure Services, and Others. The asset management segment provides integrated facilities management and engineering contracting services for a range of assets and building types specializing in healthcare support and property and facility solutions. The Infrastructure Solutions segment provides strategic advisory services, design, development, maintenance, and management of transport projects and infrastructure assets. It has a world-wide presence, with around half of revenue stemming from the Malaysian domestic market.
41GF Score
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