ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. POS Malaysia Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 0.26%.
As of today (2026-07-05), POS Malaysia Bhd's WACC % is 7.20%. POS Malaysia Bhd's ROC % is -6.93% (calculated using TTM income statement data).
POS Malaysia Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
POS Malaysia Bhd (XKLS:4634) 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, POS Malaysia Bhd's WACC % is 7.20%. POS Malaysia Bhd's ROC % is -6.93% (calculated using TTM income statement data).
POS Malaysia 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.
POS Malaysia Bhd ROC % Related Terms
POS Malaysia Bhd ROC % Historical Data
* Premium members only.
The historical data trend for POS Malaysia 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.
POS Malaysia Bhd (XKLS:4634) has a ROC % of 0.26% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on POS Malaysia Bhd and its competitors.
Is POS Malaysia Bhd's ROC % too high?
POS Malaysia Bhd's current ROC % is 0.26%. The Transportation industry median ROC % is 4.69. POS Malaysia Bhd's value of 0.26% is 94.5% below this industry median. Overall, POS Malaysia Bhd has a GF Score™ of 24/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does POS Malaysia Bhd's ROC % compare to UPS and FDX?
POS Malaysia Bhd's ROC % of 0.26% can be compared against companies in the Transportation industry. The industry median ROC % is 4.69. POS Malaysia Bhd's value of 0.26% is 94.5% below 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 Transportation company?
The median ROC % among Transportation companies is 4.69, based on 985 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. POS Malaysia Bhd's current ROC % of 0.26% is 94.5% below 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 POS Malaysia Bhd and its competitors. For the Transportation industry, the median ROC % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. POS Malaysia Bhd's current ROC % is 0.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is POS Malaysia Bhd stock overvalued right now?
Based on GuruFocus' analysis, POS Malaysia Bhd (XKLS:4634) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.33, compared to a current price of RM0.26 — trading 21.2% below its estimated fair value. The current ROC % is 0.26% and 94.5% below the Transportation industry median of 4.69. POS Malaysia Bhd's overall GF Score™ is 24/100 with 5 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 POS Malaysia Bhd (XKLS:4634), the current ROC % is 0.26% 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 POS Malaysia Bhd (XKLS:4634) Overvalued in 2026?
Based on GuruFocus' analysis, POS Malaysia Bhd stock appears to be undervalued.
The current stock price of RM0.26 is trading 21.2% below its estimated GF Value™ of RM0.33.
GuruFocus considers POS Malaysia Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:4634:
ROC %: 0.26%
GF Value™: RM0.33 vs. price of RM0.26 (21.2% below fair value)
Industry Position: 94.5% below the Transportation median
No single metric tells the full story. See the XKLS:4634 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
POS Malaysia Bhd, along with its subsidiaries, provides dynamic mail and parcel services, financial services, and supply chain solutions through its delivery and touchpoint network in Malaysia. The reportable segments of the Group are: Postal, Aviation, Logistics, and Others. It derives maximum revenue from the Postal segment, which includes the provision of basic mail services for corporate and individual customers; courier, parcel, and logistic solutions by sea, air, and land to both national and international destinations; direct entry and transhipment; and customized solutions such as Mailroom Management and Direct Mail, and over-the-counter services for payment of bills and certain financial products and services. Geographically, the Group generates maximum revenue from Malaysia.
24GF Score
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