Southern Steel Bhd (XKLS:5665) ROE %: -13.57% (As of Sep. 2025)


XKLS:5665 Southern Steel Bhd XKLS:5665
31 GF Score
Price RM0.39
GF Value RM0.26
Valuation Significantly Overvalued
! 3 Warning Signs
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What is Southern Steel Bhd ROE %?

Southern Steel Bhd XKLS:5665 31 ROE % is -13.57% as of Sep. 2025. GuruFocus rates XKLS:5665 with a GF Score™ of 31/100 and a GF Value™ of RM0.26 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 622 Steel companies, Southern Steel Bhd ranks worse than 81.19% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Southern Steel Bhd's annualized net income for the quarter that ended in Sep. 2025 was RM-122 Mil. Southern Steel Bhd's average Total Stockholders Equity over the quarter that ended in Sep. 2025 was RM900 Mil. Therefore, Southern Steel Bhd's annualized ROE % for the quarter that ended in Sep. 2025 was -13.57%.

The historical rank and industry rank for Southern Steel Bhd's ROE % or its related term are showing as below:

XKLS:5665' s ROE % Range Over the Past 10 Years
Min: -61.2   Med: -13.18   Max: 24.35
Current: -4.58

During the past 13 years, Southern Steel Bhd's highest ROE % was 24.35%. The lowest was -61.20%. And the median was -13.18%.

XKLS:5665's ROE % is ranked worse than
81.19% of 622 companies
in the Steel industry
Industry Median: 3.69 vs XKLS:5665: -4.58

Southern Steel Bhd  (XKLS:5665) 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:

ROE %(Q: Sep. 2025 )
=Net Income/Total Stockholders Equity
=-122.144/900.346
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-122.144 / 2240.308)*(2240.308 / 1406.223)*(1406.223 / 900.346)
=Net Margin %*Asset Turnover*Equity Multiplier
=-5.45 %*1.5931*1.5619
=ROA %*Equity Multiplier
=-8.68 %*1.5619
=-13.57 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2025 )
=Net Income/Total Stockholders Equity
=-122.144/900.346
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-122.144 / -100.048) * (-100.048 / -87.004) * (-87.004 / 2240.308) * (2240.308 / 1406.223) * (1406.223 / 900.346)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.2209 * 1.1499 * -3.88 % * 1.5931 * 1.5619
=-13.57 %

Note: The net income data used here is four times the quarterly (Sep. 2025) net income data. The Revenue data used here is four times the quarterly (Sep. 2025) 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.


Southern Steel Bhd ROE % Related Terms


Southern Steel Bhd ROE % Historical Data

* Premium members only.

The historical data trend for Southern Steel 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.

Southern Steel Bhd ROE % Chart

Southern Steel Bhd Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -61.20 6.86 -14.00 -22.53 -5.01

Southern Steel Bhd Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -18.53 -5.49 1.53 0.18 -13.57

XKLS:5665 vs NUE, STLD, RS: ROE % Comparison

For the Steel subindustry, Southern Steel 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.


Southern Steel Bhd ROE % vs Steel Industry

For the Steel industry and Basic Materials sector, Southern Steel Bhd's ROE % distribution charts can be found below:

* The bar in red indicates where Southern Steel Bhd's ROE % falls into.


XKLS:5665
31GF Score
Southern Steel Bhd XKLS:5665
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Southern Steel Bhd ROE % Calculation

Southern Steel Bhd's annualized ROE % for the fiscal year that ended in Jun. 2024 is calculated as

ROE %=Net Income (A: Jun. 2024 )/( (Total Stockholders Equity (A: Jun. 2023 )+Total Stockholders Equity (A: Jun. 2024 ))/ count )
=-29.895/( (625.202+568.341)/ 2 )
=-29.895/596.7715
=-5.01 %

Southern Steel Bhd's annualized ROE % for the quarter that ended in Sep. 2025 is calculated as

ROE %=Net Income (Q: Sep. 2025 )/( (Total Stockholders Equity (Q: Jun. 2025 )+Total Stockholders Equity (Q: Sep. 2025 ))/ count )
=-122.144/( (915.838+884.854)/ 2 )
=-122.144/900.346
=-13.57 %

* 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 (Sep. 2025) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of -13.57% mean?
Southern Steel Bhd (XKLS:5665) has a ROE % of -13.57% as of Sep. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Southern Steel Bhd and its competitors. According to the industry distribution chart, Southern Steel Bhd ranks #505 out of 622 companies in the Steel industry, placing it in the top 81.2%.
Is Southern Steel Bhd's ROE % too high?
Southern Steel Bhd's current ROE % is -13.57%. Based on the distribution chart, Southern Steel Bhd ranks #505 out of 622 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Southern Steel Bhd has a GF Score™ of 31/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Southern Steel Bhd's ROE % compare to NUE and STLD?
According to the Steel industry distribution chart, Southern Steel Bhd ranks #505 out of 622 companies for ROE %. This places Southern Steel Bhd in the lower half of its industry. The industry median ROE % is 3.69. 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 Steel company?
The median ROE % among Steel companies is 3.69, based on 622 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 Southern Steel Bhd and its competitors. For the Steel industry, the median ROE % is 3.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southern Steel Bhd's current ROE % is -13.57%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southern Steel Bhd stock overvalued right now?
Based on GuruFocus' analysis, Southern Steel Bhd (XKLS:5665) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.26, compared to a current price of RM0.39 — trading 50% above its estimated fair value. The current ROE % is -13.57%. Southern Steel Bhd's overall GF Score™ is 31/100 with 3 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 Southern Steel Bhd (XKLS:5665), the current ROE % is -13.57% as of Sep. 2025. 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 Southern Steel Bhd (XKLS:5665) Overvalued in 2026?

Based on GuruFocus' analysis, Southern Steel Bhd stock appears to be overvalued. The current stock price of RM0.39 is trading 50% above its estimated GF Value™ of RM0.26. GuruFocus considers Southern Steel Bhd to be Significantly Overvalued.

Key valuation signals for XKLS:5665:

  • ROE %: -13.57%
  • GF Value™: RM0.26 vs. price of RM0.39 (50% above fair value)
  • GF Score™: 31/100 with 3 warning signs

No single metric tells the full story. See the XKLS:5665 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Southern Steel Bhd Business Description

Address 2723, Lorong Perusahaan 12, Prai Industrial Estate, Prai, PNG, MYS, 13600
Southern Steel Bhd is an investment holding company involved in the manufacturing, sale and trading of steel bars and related products, while the principal activities of its subsidiaries include the manufacturing, sale and trading in billets, steel bars, wire rods, pre-stressed concrete strands, bars and wires, steel pipes, steel wires, and other related products, as well as rental of properties and investment holding. The company comprises the following reportable segments: Steel products, Investment holding and others and Hot rolled coil operation. The company derived the majority of revenue from the sale of its products: bars, wire rod, wire mesh, cut and bend and pre-stressed concrete wire.
31GF Score

Get the complete analysis for XKLS:5665

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

RM0.39
Price
RM0.26
GF Value