ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. ETA Group Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.16%.
As of today (2026-06-26), ETA Group Bhd's WACC % is 2.99%. ETA Group Bhd's ROC % is 2.65% (calculated using TTM income statement data).
ETA Group Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
ETA Group Bhd (XKLS:9946) 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, ETA Group Bhd's WACC % is 2.99%. ETA Group Bhd's ROC % is 2.65% (calculated using TTM income statement data).
ETA Group 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.
ETA Group Bhd ROC % Related Terms
ETA Group Bhd ROC % Historical Data
* Premium members only.
The historical data trend for ETA Group 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.
ETA Group Bhd (XKLS:9946) has a ROC % of 2.16% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on ETA Group Bhd and its competitors.
Is ETA Group Bhd's ROC % too high?
ETA Group Bhd's current ROC % is 2.16%. The Consumer Packaged Goods industry median ROC % is 5.14. ETA Group Bhd's value of 2.16% is 58% below this industry median. Overall, ETA Group Bhd has a GF Score™ of 45/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ETA Group Bhd's ROC % compare to KHC and GIS?
ETA Group Bhd's ROC % of 2.16% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROC % is 5.14. ETA Group Bhd's value of 2.16% is 58% 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 Consumer Packaged Goods company?
The median ROC % among Consumer Packaged Goods companies is 5.14, based on 1,948 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. ETA Group Bhd's current ROC % of 2.16% is 58% 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 ETA Group Bhd and its competitors. For the Consumer Packaged Goods industry, the median ROC % is 5.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ETA Group Bhd's current ROC % is 2.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ETA Group Bhd stock overvalued right now?
Based on GuruFocus' analysis, ETA Group Bhd (XKLS:9946) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.14, compared to a current price of RM0.12 — trading 14.3% below its estimated fair value. The current ROC % is 2.16% and 58% below the Consumer Packaged Goods industry median of 5.14. ETA Group Bhd's overall GF Score™ is 45/100 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 ETA Group Bhd (XKLS:9946), the current ROC % is 2.16% 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 ETA Group Bhd (XKLS:9946) Overvalued in 2026?
Based on GuruFocus' analysis, ETA Group Bhd stock appears to be undervalued.
The current stock price of RM0.12 is trading 14.3% below its estimated GF Value™ of RM0.14.
GuruFocus considers ETA Group Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:9946:
ROC %: 2.16%
GF Value™: RM0.14 vs. price of RM0.12 (14.3% below fair value)
Industry Position: 58% below the Consumer Packaged Goods median
No single metric tells the full story. See the XKLS:9946 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ETA Group Bhd is engaged in property development, property management and property investment, as well as construction and construction-related activities, including the trading and supply of construction materials. Its activities include Sourcing of land, Architectural and engineering services, Submission and approvals, Construction, Project management, and Delivery of vacant possession. It operates in two segment the manufacture and distribution of canned food, beverages and premix products and the trading and distribution of construction materials. It derives revenue from Trading and distribution of construction materials segment. Geographically, it operates in Malaysia, Europe, USA, and Asia (excluding Malaysia) with majority of revenue deriving from USA.
45GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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