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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. KESM Industries Bhd's annualized return on capital (ROC %) for the quarter that ended in Apr. 2026 was 18.11%.
As of today (2026-07-21), KESM Industries Bhd's WACC % is 7.89%. KESM Industries Bhd's ROC % is 25.97% (calculated using TTM income statement data).
KESM Industries 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.
KESM Industries Bhd (XKLS:9334) 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, KESM Industries Bhd's WACC % is 7.89%. KESM Industries Bhd's ROC % is 25.97% (calculated using TTM income statement data).
KESM Industries 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.
KESM Industries Bhd ROC % Related Terms
KESM Industries Bhd ROC % Historical Data
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The historical data trend for KESM Industries 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 (Apr. 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.
KESM Industries Bhd (XKLS:9334) has a ROC % of 18.11% as of Apr. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on KESM Industries Bhd and its competitors.
Is KESM Industries Bhd's ROC % too high?
KESM Industries Bhd's current ROC % is 18.11%. The Semiconductors industry median ROC % is 3.77. KESM Industries Bhd's value of 18.11% is 380.4% above this industry median. Overall, KESM Industries Bhd has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does KESM Industries Bhd's ROC % compare to NVDA and AVGO?
KESM Industries Bhd's ROC % of 18.11% can be compared against companies in the Semiconductors industry. The industry median ROC % is 3.77. KESM Industries Bhd's value of 18.11% is 380.4% 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 Semiconductors company?
The median ROC % among Semiconductors companies is 3.77, based on 1,011 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. KESM Industries Bhd's current ROC % of 18.11% is 380.4% 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 KESM Industries Bhd and its competitors. For the Semiconductors industry, the median ROC % is 3.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KESM Industries Bhd's current ROC % is 18.11%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KESM Industries Bhd stock overvalued right now?
Based on GuruFocus' analysis, KESM Industries Bhd (XKLS:9334) is currently considered Fairly Valued. The stock's GF Value™ is RM3.89, compared to a current price of RM4.08 — trading 4.9% above its estimated fair value. The current ROC % is 18.11% and 380.4% above the Semiconductors industry median of 3.77. KESM Industries Bhd's overall GF Score™ is 81/100 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 KESM Industries Bhd (XKLS:9334), the current ROC % is 18.11% as of Apr. 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 KESM Industries Bhd (XKLS:9334) Overvalued in 2026?
Based on GuruFocus' analysis, KESM Industries Bhd stock appears to be overvalued.
The current stock price of RM4.08 is trading 4.9% above its estimated GF Value™ of RM3.89.
GuruFocus considers KESM Industries Bhd to be Fairly Valued.
Key valuation signals for XKLS:9334:
ROC %: 18.11%
GF Value™: RM3.89 vs. price of RM4.08 (4.9% above fair value)
Industry Position: 380.4% above the Semiconductors median
No single metric tells the full story. See the XKLS:9334 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KESM Industries Bhd operates through a single business segment, providing essential burn-in and testing services that ensure the reliability of semiconductors, including microprocessors, microcontrollers, and advanced sensors. Serving the semiconductor industry, the company's products support technologies across the automotive, industrial, consumer, and commercial sectors internationally. Its customer base spans key markets in the United States, Europe, and the Asia Pacific, with sales concentrated mainly in Malaysia, the People's Republic of China, Singapore, and other regions, and the majority of revenue comes from Malaysia.
81GF Score
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