ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Hengyuan Refining Co Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 66.60%.
As of today (2026-06-26), Hengyuan Refining Co Bhd's WACC % is 6.88%. Hengyuan Refining Co Bhd's ROC % is 16.73% (calculated using TTM income statement data).
Hengyuan Refining Co 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.
Hengyuan Refining Co Bhd (XKLS:4324) 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, Hengyuan Refining Co Bhd's WACC % is 6.88%. Hengyuan Refining Co Bhd's ROC % is 16.73% (calculated using TTM income statement data).
Hengyuan Refining Co 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 (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.
Hengyuan Refining Co Bhd (XKLS:4324) has a ROC % of 66.60% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Hengyuan Refining Co Bhd and its competitors.
Is Hengyuan Refining Co Bhd's ROC % too high?
Hengyuan Refining Co Bhd's current ROC % is 66.60%. The Oil & Gas industry median ROC % is 3.63. Hengyuan Refining Co Bhd's value of 66.60% is 1734.7% above this industry median. Overall, Hengyuan Refining Co Bhd has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hengyuan Refining Co Bhd's ROC % compare to VLO and MPC?
Hengyuan Refining Co Bhd's ROC % of 66.60% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 3.63. Hengyuan Refining Co Bhd's value of 66.60% is 1734.7% 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 an Oil & Gas company?
The median ROC % among Oil & Gas companies is 3.63, based on 997 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. Hengyuan Refining Co Bhd's current ROC % of 66.60% is 1734.7% 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 Hengyuan Refining Co Bhd and its competitors. For the Oil & Gas industry, the median ROC % is 3.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hengyuan Refining Co Bhd's current ROC % is 66.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hengyuan Refining Co Bhd stock overvalued right now?
Based on GuruFocus' analysis, Hengyuan Refining Co Bhd (XKLS:4324) is currently considered Modestly Undervalued. The stock's GF Value™ is RM1.19, compared to a current price of RM1.03 — trading 13.4% below its estimated fair value. The current ROC % is 66.60% and 1734.7% above the Oil & Gas industry median of 3.63. Hengyuan Refining Co Bhd's overall GF Score™ is 59/100 with 2 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 Hengyuan Refining Co Bhd (XKLS:4324), the current ROC % is 66.60% 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 Hengyuan Refining Co Bhd (XKLS:4324) Overvalued in 2026?
Based on GuruFocus' analysis, Hengyuan Refining Co Bhd stock appears to be undervalued.
The current stock price of RM1.03 is trading 13.4% below its estimated GF Value™ of RM1.19.
GuruFocus considers Hengyuan Refining Co Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:4324:
ROC %: 66.60%
GF Value™: RM1.19 vs. price of RM1.03 (13.4% below fair value)
Industry Position: 1734.7% above the Oil & Gas median
No single metric tells the full story. See the XKLS:4324 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hengyuan Refining Co Bhd is engaged in the refining and manufacturing of petroleum products in Malaysia. The company's operating units in its refinery consist of two crude distillers, a long residue catalytic cracker, two naptha treaters and a merox plant, one kerosene Merox plant, one platformer, two hydro-processing units, a Hydrogen Manufacturing Unit (HMU) and a sulphur recovery unit. Its product portfolio consists of liquefied petroleum gas (LPG), gasoline, diesel, aviation fuel, fuel oil components, and chemical feedstocks like light naphtha and propylene.
59GF Score
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