ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. DPS Resources Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -1.48%.
As of today (2026-06-27), DPS Resources Bhd's WACC % is 4.24%. DPS Resources Bhd's ROC % is 0.82% (calculated using TTM income statement data).
DPS Resources Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
DPS Resources Bhd (XKLS:7198) 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, DPS Resources Bhd's WACC % is 4.24%. DPS Resources Bhd's ROC % is 0.82% (calculated using TTM income statement data).
DPS Resources 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.
DPS Resources Bhd ROC % Related Terms
DPS Resources Bhd ROC % Historical Data
* Premium members only.
The historical data trend for DPS Resources 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.
DPS Resources Bhd (XKLS:7198) has a ROC % of -1.48% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on DPS Resources Bhd and its competitors.
Is DPS Resources Bhd's ROC % too high?
DPS Resources Bhd's current ROC % is -1.48%. Overall, DPS Resources Bhd has a GF Score™ of 34/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does DPS Resources Bhd's ROC % compare to HON and MMM?
DPS Resources Bhd's ROC % of -1.48% can be compared against companies in the Conglomerates industry. The industry median ROC % is 2.82. 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 Conglomerates company?
The median ROC % among Conglomerates companies is 2.82, based on 552 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 DPS Resources Bhd and its competitors. For the Conglomerates industry, the median ROC % is 2.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DPS Resources Bhd's current ROC % is -1.48%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DPS Resources Bhd stock overvalued right now?
Based on GuruFocus' analysis, DPS Resources Bhd (XKLS:7198) is currently considered Modestly Overvalued. The stock's GF Value™ is RM0.43, compared to a current price of RM0.54 — trading 24.4% above its estimated fair value. The current ROC % is -1.48%. DPS Resources Bhd's overall GF Score™ is 34/100 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 DPS Resources Bhd (XKLS:7198), the current ROC % is -1.48% 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 DPS Resources Bhd (XKLS:7198) Overvalued in 2026?
Based on GuruFocus' analysis, DPS Resources Bhd stock appears to be overvalued.
The current stock price of RM0.54 is trading 24.4% above its estimated GF Value™ of RM0.43.
GuruFocus considers DPS Resources Bhd to be Modestly Overvalued.
Key valuation signals for XKLS:7198:
ROC %: -1.48%
GF Value™: RM0.43 vs. price of RM0.54 (24.4% above fair value)
No single metric tells the full story. See the XKLS:7198 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DPS Resources Bhd is an investment holding company. The company's operating segment includes Investment holding; Manufacturing and Trading; Property development services; Construction services, Rental income, and Real estate. It generates maximum revenue from the manufacturing and trading segment. The manufacturing and trading segment is engaged in the manufacturing and trading of furniture and roof trusses, and the provision of kiln-drying services. Its Property development services carry on the business of real property and housing development-related services. Geographically, it derives a majority of its revenue from Malaysia and also has a presence in the Asia Pacific, the United States, Europe, the Middle East, and Africa.
34GF Score
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