ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Rhong Khen International Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -9.45%.
As of today (2026-07-04), Rhong Khen International Bhd's WACC % is 6.35%. Rhong Khen International Bhd's ROC % is -1.75% (calculated using TTM income statement data).
Rhong Khen International Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Rhong Khen International Bhd (XKLS:7006) 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, Rhong Khen International Bhd's WACC % is 6.35%. Rhong Khen International Bhd's ROC % is -1.75% (calculated using TTM income statement data).
Rhong Khen International 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.
Rhong Khen International Bhd ROC % Related Terms
Rhong Khen International Bhd ROC % Historical Data
* 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.
Rhong Khen International Bhd (XKLS:7006) has a ROC % of -9.45% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Rhong Khen International Bhd and its competitors.
Is Rhong Khen International Bhd's ROC % too high?
Rhong Khen International Bhd's current ROC % is -9.45%. Overall, Rhong Khen International Bhd has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rhong Khen International Bhd's ROC % compare to SN and SGI?
Rhong Khen International Bhd's ROC % of -9.45% can be compared against companies in the Furnishings, Fixtures & Appliances industry. The industry median ROC % is 3.46. 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 Furnishings, Fixtures & Appliances company?
The median ROC % among Furnishings, Fixtures & Appliances companies is 3.46, based on 428 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. 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 Rhong Khen International Bhd and its competitors. For the Furnishings, Fixtures & Appliances industry, the median ROC % is 3.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rhong Khen International Bhd's current ROC % is -9.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rhong Khen International Bhd stock overvalued right now?
Based on GuruFocus' analysis, Rhong Khen International Bhd (XKLS:7006) is currently considered Fairly Valued. The stock's GF Value™ is RM1.12, compared to a current price of RM1.07 — trading 4.5% below its estimated fair value. The current ROC % is -9.45%. Rhong Khen International Bhd's overall GF Score™ is 65/100 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 Rhong Khen International Bhd (XKLS:7006), the current ROC % is -9.45% 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 Rhong Khen International Bhd (XKLS:7006) Overvalued in 2026?
Based on GuruFocus' analysis, Rhong Khen International Bhd stock appears to be undervalued.
The current stock price of RM1.07 is trading 4.5% below its estimated GF Value™ of RM1.12.
GuruFocus considers Rhong Khen International Bhd to be Fairly Valued.
Key valuation signals for XKLS:7006:
ROC %: -9.45%
GF Value™: RM1.12 vs. price of RM1.07 (4.5% below fair value)
No single metric tells the full story. See the XKLS:7006 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rhong Khen International Bhd is a Malaysian investment holding company specializing in the manufacturing and distribution of wooden furniture and components, mainly rubber-wood products, for domestic and export markets. Its key products include dining and bedroom furniture, decorative panels, and polyester boards. About half of its raw materials are rubber wood, with the remainder sourced from poplar, pine, and other woods. The company operates through three segments: manufacturing, rental of investment properties, and investment holding, with the majority of its revenue generated from manufacturing. It serves markets in the United States, Southeast Asia, Australia, Canada, and other regions, with the United States contributing the highest portion of its revenue.
65GF Score
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