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REDtone Digital BhdXKLS:0032 +1.61%49 ROE % is 4.66% as of Mar. 2026, which is 47% below its 10-year median of 8.84. GuruFocus rates XKLS:0032 with a GF Score™ of 49/100 and a GF Value™ of RM0.84 (Significantly Undervalued). The stock has 8 warning signs investors should review. Among 347 Telecommunication Services companies, REDtone Digital Bhd ranks worse than 72.62% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
REDtone Digital Bhd ROE % Related Terms
REDtone Digital Bhd ROE % Historical Data
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The historical data trend for REDtone Digital Bhd's ROE % 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.
For the Telecom Services subindustry, REDtone Digital Bhd's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
REDtone Digital Bhd ROE % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, REDtone Digital Bhd's ROE % distribution charts can be found below:
* The bar in red indicates where REDtone Digital Bhd's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
REDtone Digital Bhd (XKLS:0032) has a ROE % of 4.66% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on REDtone Digital Bhd and its competitors. This is 47% below median its historical median of 8.84. According to the industry distribution chart, REDtone Digital Bhd ranks #252 out of 347 companies in the Telecommunication Services industry, placing it in the top 72.6%.
Is REDtone Digital Bhd's ROE % too high?
REDtone Digital Bhd's current ROE % of 4.66% is 47% below median its 10-year median of 8.84. The Telecommunication Services industry median ROE % is 7.35. REDtone Digital Bhd's value of 4.66% is 36.6% below this industry median. Based on the distribution chart, REDtone Digital Bhd ranks #252 out of 347 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, REDtone Digital Bhd has a GF Score™ of 49/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does REDtone Digital Bhd's ROE % compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, REDtone Digital Bhd ranks #252 out of 347 companies for ROE %. This places REDtone Digital Bhd in the lower half of its industry. The industry median ROE % is 7.35. REDtone Digital Bhd's value of 4.66% is 36.6% below this benchmark. While the company's 10-year median is 8.84 vs. the industry median of 7.35, REDtone Digital Bhd has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Telecommunication Services company?
The median ROE % among Telecommunication Services companies is 7.35, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. REDtone Digital Bhd's current ROE % of 4.66% is 36.6% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on REDtone Digital Bhd and its competitors. For the Telecommunication Services industry, the median ROE % is 7.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REDtone Digital Bhd's current ROE % is 4.66%, which is 47% below median its own 10-year median of 8.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REDtone Digital Bhd stock overvalued right now?
Based on GuruFocus' analysis, REDtone Digital Bhd (XKLS:0032) is currently considered Significantly Undervalued. The stock's GF Value™ is RM0.84, compared to a current price of RM0.32 — trading 62.5% below its estimated fair value. The current ROE % is 4.66%, which is 47% below median its 10-year median of 8.84 and 36.6% below the Telecommunication Services industry median of 7.35. REDtone Digital Bhd's overall GF Score™ is 49/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For REDtone Digital Bhd (XKLS:0032), the current ROE % is 4.66% 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 REDtone Digital Bhd (XKLS:0032) Overvalued in 2026?
Based on GuruFocus' analysis, REDtone Digital Bhd stock appears to be undervalued.
The current stock price of RM0.32 is trading 62.5% below its estimated GF Value™ of RM0.84.
GuruFocus considers REDtone Digital Bhd to be Significantly Undervalued.
Key valuation signals for XKLS:0032:
ROE %: 4.66% (47% below median its 10-year median of 8.84)
GF Value™: RM0.84 vs. price of RM0.32 (62.5% below fair value)
Industry Position: 36.6% below the Telecommunication Services median (#252 of 347)
No single metric tells the full story. See the XKLS:0032 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
REDtone Digital Bhd is a digital infrastructure and services provider operating through three segments: Telecommunication Services, offering data, managed network services, Cloud PBX, SIP Trunking, managed cybersecurity, and Starlink satellite connectivity; Managed Telecommunications Network Services, strengthening Malaysia's digital infrastructure in underserved and rural areas, supporting initiatives like Kampung Tanpa Wayar, Time-3, and JENDELA; and Cloud, Artificial Intelligence, and Internet of Things, providing cloud-first, AI-powered, and IoT-enabled solutions including AI Agents, smart farming, and SaaS CRM platforms. The company generates majority of its revenue from the Managed Telecommunications Network Services segment and operates in Malaysia.
49GF Score
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