ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Globaltec Formation Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 0.58%.
As of today (2026-06-25), Globaltec Formation Bhd's WACC % is 5.31%. Globaltec Formation Bhd's ROC % is 2.12% (calculated using TTM income statement data).
Globaltec Formation Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Globaltec Formation Bhd (XKLS:5220) 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, Globaltec Formation Bhd's WACC % is 5.31%. Globaltec Formation Bhd's ROC % is 2.12% (calculated using TTM income statement data).
Globaltec Formation 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.
Globaltec Formation Bhd (XKLS:5220) has a ROC % of 0.58% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Globaltec Formation Bhd and its competitors.
Is Globaltec Formation Bhd's ROC % too high?
Globaltec Formation Bhd's current ROC % is 0.58%. The Vehicles & Parts industry median ROC % is 5.07. Globaltec Formation Bhd's value of 0.58% is 88.6% below this industry median. Overall, Globaltec Formation Bhd has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Globaltec Formation Bhd's ROC % compare to ORLY and AZO?
Globaltec Formation Bhd's ROC % of 0.58% can be compared against companies in the Vehicles & Parts industry. The industry median ROC % is 5.07. Globaltec Formation Bhd's value of 0.58% is 88.6% 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 Vehicles & Parts company?
The median ROC % among Vehicles & Parts companies is 5.07, based on 1,316 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. Globaltec Formation Bhd's current ROC % of 0.58% is 88.6% 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 Globaltec Formation Bhd and its competitors. For the Vehicles & Parts industry, the median ROC % is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Globaltec Formation Bhd's current ROC % is 0.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Globaltec Formation Bhd stock overvalued right now?
Based on GuruFocus' analysis, Globaltec Formation Bhd (XKLS:5220) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.40, compared to a current price of RM0.86 — trading 115% above its estimated fair value. The current ROC % is 0.58% and 88.6% below the Vehicles & Parts industry median of 5.07. Globaltec Formation Bhd's overall GF Score™ is 40/100 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 Globaltec Formation Bhd (XKLS:5220), the current ROC % is 0.58% 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 Globaltec Formation Bhd (XKLS:5220) Overvalued in 2026?
Based on GuruFocus' analysis, Globaltec Formation Bhd stock appears to be overvalued.
The current stock price of RM0.86 is trading 115% above its estimated GF Value™ of RM0.40.
GuruFocus considers Globaltec Formation Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:5220:
ROC %: 0.58%
GF Value™: RM0.40 vs. price of RM0.86 (115% above fair value)
Industry Position: 88.6% below the Vehicles & Parts median
No single metric tells the full story. See the XKLS:5220 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Globaltec Formation Bhd is an auto parts manufacturer. Its business is divided into four reportable segments, namely Integrated Manufacturing Services (IMS), Resources, Energy, and Investment Holding. The IMS segment deals with designing and manufacturing automotive components, and it also consists of the precision machining, stamping, and tooling arm and the semiconductor division. The Resources segment includes the oil palm plantation and coal mining divisions. The Energy segment includes oil and gas exploration, production, and services. Lastly, the Investment Holding segment manages the company's investments in subsidiaries. The company generates the majority of its revenue from the IMS segment. Geographically, it derives key revenue from Malaysia.
40GF Score
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