ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Dagang NeXchange Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 4.87%.
As of today (2026-06-26), Dagang NeXchange Bhd's WACC % is 5.29%. Dagang NeXchange Bhd's ROC % is 2.77% (calculated using TTM income statement data).
Dagang NeXchange Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Dagang NeXchange Bhd (XKLS:4456) 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, Dagang NeXchange Bhd's WACC % is 5.29%. Dagang NeXchange Bhd's ROC % is 2.77% (calculated using TTM income statement data).
Dagang NeXchange 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.
Dagang NeXchange Bhd (XKLS:4456) has a ROC % of 4.87% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Dagang NeXchange Bhd and its competitors.
Is Dagang NeXchange Bhd's ROC % too high?
Dagang NeXchange Bhd's current ROC % is 4.87%. The Software industry median ROC % is 3.11. Dagang NeXchange Bhd's value of 4.87% is 56.8% above this industry median. Overall, Dagang NeXchange Bhd has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dagang NeXchange Bhd's ROC % compare to IBM and ACN?
Dagang NeXchange Bhd's ROC % of 4.87% can be compared against companies in the Software industry. The industry median ROC % is 3.11. Dagang NeXchange Bhd's value of 4.87% is 56.8% 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 Software company?
The median ROC % among Software companies is 3.11, based on 2,830 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. Dagang NeXchange Bhd's current ROC % of 4.87% is 56.8% 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 Dagang NeXchange Bhd and its competitors. For the Software industry, the median ROC % is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dagang NeXchange Bhd's current ROC % is 4.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dagang NeXchange Bhd stock overvalued right now?
Based on GuruFocus' analysis, Dagang NeXchange Bhd (XKLS:4456) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.29, compared to a current price of RM0.42 — trading 44.8% above its estimated fair value. The current ROC % is 4.87% and 56.8% above the Software industry median of 3.11. Dagang NeXchange Bhd's overall GF Score™ is 58/100 with 9 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 Dagang NeXchange Bhd (XKLS:4456), the current ROC % is 4.87% 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 Dagang NeXchange Bhd (XKLS:4456) Overvalued in 2026?
Based on GuruFocus' analysis, Dagang NeXchange Bhd stock appears to be overvalued.
The current stock price of RM0.42 is trading 44.8% above its estimated GF Value™ of RM0.29.
GuruFocus considers Dagang NeXchange Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:4456:
ROC %: 4.87%
GF Value™: RM0.29 vs. price of RM0.42 (44.8% above fair value)
Industry Position: 56.8% above the Software median
No single metric tells the full story. See the XKLS:4456 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dagang NeXchange Bhd is a Malaysia based company. The business operates in various segments that include Corporate, Information technology, Energy and Semiconductor. Corporate is in provision of corporate services to the entities within the group. Information technology which include Supply, delivery, installation, testing, commissioning and maintenance of IT hardware, development, management and B2G e-commerce. Energy includes providing upstream oil and gas exploration, production, sale of oil and gas related equipment and services, provision of engineering, technical support and energy related business. Key revenue is generated from Semiconductor segment which consists manufacturing of semiconductor wafers ,supplies multinational fables, sales of semiconductor related tools and others.
58GF Score
Get the complete analysis for XKLS:4456
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:4456 has been successfully added to your 
