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Kuala Lumpur Kepong Bhd (XKLS:2445) ROE % Explanation
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 (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
* 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 Conglomerates subindustry, Kuala Lumpur Kepong 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.
Kuala Lumpur Kepong Bhd ROE % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Kuala Lumpur Kepong Bhd's ROE % distribution charts can be found below:
* The bar in red indicates where Kuala Lumpur Kepong 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 (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Kuala Lumpur Kepong Bhd (XKLS:2445) has a ROE % of -40.72% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Kuala Lumpur Kepong Bhd and its competitors. According to the industry distribution chart, Kuala Lumpur Kepong Bhd ranks #454 out of 552 companies in the Conglomerates industry, placing it in the top 82.2%.
Is Kuala Lumpur Kepong Bhd's ROE % too high?
Kuala Lumpur Kepong Bhd's current ROE % is -40.72%. Based on the distribution chart, Kuala Lumpur Kepong Bhd ranks #454 out of 552 companies in the Conglomerates industry, which is in the bottom quartile relative to peers. Overall, Kuala Lumpur Kepong 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 Kuala Lumpur Kepong Bhd's ROE % compare to MMM and HON?
According to the Conglomerates industry distribution chart, Kuala Lumpur Kepong Bhd ranks #454 out of 552 companies for ROE %. This places Kuala Lumpur Kepong Bhd in the lower half of its industry. The industry median ROE % is 6.36. 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 Conglomerates company?
The median ROE % among Conglomerates companies is 6.36, based on 552 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. 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 Kuala Lumpur Kepong Bhd and its competitors. For the Conglomerates industry, the median ROE % is 6.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kuala Lumpur Kepong Bhd's current ROE % is -40.72%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kuala Lumpur Kepong Bhd stock overvalued right now?
Based on GuruFocus' analysis, Kuala Lumpur Kepong Bhd (XKLS:2445) is currently considered Fairly Valued. The stock's GF Value™ is RM23.94, compared to a current price of RM22.00 — trading 8.1% below its estimated fair value. The current ROE % is -40.72%. Kuala Lumpur Kepong Bhd's overall GF Score™ is 81/100 with 9 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 Kuala Lumpur Kepong Bhd (XKLS:2445), the current ROE % is -40.72% as of Jun. 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 Kuala Lumpur Kepong Bhd (XKLS:2445) Overvalued in 2026?
Based on GuruFocus' analysis, Kuala Lumpur Kepong Bhd stock appears to be undervalued.
The current stock price of RM22.00 is trading 8.1% below its estimated GF Value™ of RM23.94.
GuruFocus considers Kuala Lumpur Kepong Bhd to be Fairly Valued.
Key valuation signals for XKLS:2445:
ROE %: -40.72%
GF Value™: RM23.94 vs. price of RM22.00 (8.1% below fair value)
No single metric tells the full story. See the XKLS:2445 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kuala Lumpur Kepong Bhd harvests oil palm and rubber plantations in Southeast Asia. On top of utilizing the plantations, the company manufactures fatty acids and alcohols, oleochemicals, soaps, rubber gloves, and other specialty chemicals, and is also engaged in the business of Property development. Its reportable segments include Plantation, Manufacturing, Property Development, Investment Holding, and Others. Majority of revenue is generated from its manufacturing segment, which is involved in the manufacturing of oleochemicals, non-ionic surfactants, and esters, rubber gloves, parquet flooring products, pharmaceutical products, storing and distribution of bulk liquid, refining of palm products, kernel crushing, and trading of palm products. It operates in Malaysia and other regions.
81GF Score
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