ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. ELK-Desa Resources Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 8.83%.
As of today (2026-06-27), ELK-Desa Resources Bhd's WACC % is 1.26%. ELK-Desa Resources Bhd's ROC % is 8.34% (calculated using TTM income statement data).
ELK-Desa Resources 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.
ELK-Desa Resources Bhd (XKLS:5228) 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, ELK-Desa Resources Bhd's WACC % is 1.26%. ELK-Desa Resources Bhd's ROC % is 8.34% (calculated using TTM income statement data).
ELK-Desa Resources 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.
ELK-Desa Resources Bhd (XKLS:5228) has a ROC % of 8.83% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on ELK-Desa Resources Bhd and its competitors.
Is ELK-Desa Resources Bhd's ROC % too high?
ELK-Desa Resources Bhd's current ROC % is 8.83%. The Credit Services industry median ROC % is 1.98. ELK-Desa Resources Bhd's value of 8.83% is 346% above this industry median. Overall, ELK-Desa Resources Bhd has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ELK-Desa Resources Bhd's ROC % compare to V and MA?
ELK-Desa Resources Bhd's ROC % of 8.83% can be compared against companies in the Credit Services industry. The industry median ROC % is 1.98. ELK-Desa Resources Bhd's value of 8.83% is 346% 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 Credit Services company?
The median ROC % among Credit Services companies is 1.98, based on 417 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. ELK-Desa Resources Bhd's current ROC % of 8.83% is 346% 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 ELK-Desa Resources Bhd and its competitors. For the Credit Services industry, the median ROC % is 1.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ELK-Desa Resources Bhd's current ROC % is 8.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ELK-Desa Resources Bhd stock overvalued right now?
Based on GuruFocus' analysis, ELK-Desa Resources Bhd (XKLS:5228) is currently considered Modestly Undervalued. The stock's GF Value™ is RM1.41, compared to a current price of RM1.01 — trading 28.4% below its estimated fair value. The current ROC % is 8.83% and 346% above the Credit Services industry median of 1.98. ELK-Desa Resources Bhd's overall GF Score™ is 85/100 with 4 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 ELK-Desa Resources Bhd (XKLS:5228), the current ROC % is 8.83% 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 ELK-Desa Resources Bhd (XKLS:5228) Overvalued in 2026?
Based on GuruFocus' analysis, ELK-Desa Resources Bhd stock appears to be undervalued.
The current stock price of RM1.01 is trading 28.4% below its estimated GF Value™ of RM1.41.
GuruFocus considers ELK-Desa Resources Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:5228:
ROC %: 8.83%
GF Value™: RM1.41 vs. price of RM1.01 (28.4% below fair value)
Industry Position: 346% above the Credit Services median
No single metric tells the full story. See the XKLS:5228 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ELK-Desa Resources Bhd is a Malaysian company investment holding company. The company's business segments are Hire-purchase financing and other integrated services and the Trading of furniture. The Hire-purchase financing and other integrated services segment is involved in the business of hire-purchase financing for used motor vehicles as well as selling general insurance policies as an insurance agent and the Trading of furniture segment is involved in the business of trading, export, wholesaling, and manufacturing of furniture. The company earns the majority of its revenue from hire-purchase financing.
85GF Score
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