ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. XOX Technology Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 11.40%.
As of today (2026-07-01), XOX Technology Bhd's WACC % is 3.80%. XOX Technology Bhd's ROIC % is 20.40% (calculated using TTM income statement data).
XOX Technology 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.
XOX Technology Bhd (XKLS:0017) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, XOX Technology Bhd's WACC % is 3.80%. XOX Technology Bhd's ROIC % is 20.40% (calculated using TTM income statement data).
XOX Technology 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 %, ROIC % 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.
XOX Technology Bhd ROIC % Related Terms
XOX Technology Bhd ROIC % Historical Data
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The historical data trend for XOX Technology Bhd's ROIC % 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, XOX Technology Bhd's ROIC %, along with its competitors' market caps and ROIC % 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.
XOX Technology Bhd ROIC % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, XOX Technology Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where XOX Technology Bhd's ROIC % falls into.
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.
XOX Technology Bhd (XKLS:0017) has a ROIC % of 11.40% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on XOX Technology Bhd and its competitors.
Is XOX Technology Bhd's ROIC % too high?
XOX Technology Bhd's current ROIC % is 11.40%. The Telecommunication Services industry median ROIC % is 4.54. XOX Technology Bhd's value of 11.40% is 151.4% above this industry median.
How does XOX Technology Bhd's ROIC % compare to TMUS and VZ?
XOX Technology Bhd's ROIC % of 11.40% can be compared against companies in the Telecommunication Services industry. The industry median ROIC % is 4.54. XOX Technology Bhd's value of 11.40% is 151.4% 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 ROIC % for a Telecommunication Services company?
The median ROIC % among Telecommunication Services companies is 4.54, based on 362 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. XOX Technology Bhd's current ROIC % of 11.40% is 151.4% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on XOX Technology Bhd and its competitors. For the Telecommunication Services industry, the median ROIC % is 4.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. XOX Technology Bhd's current ROIC % is 11.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is XOX Technology Bhd stock overvalued right now?
Based on GuruFocus' analysis, XOX Technology Bhd (XKLS:0017) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.03, compared to a current price of RM0.06 — trading 83.3% above its estimated fair value. The current ROIC % is 11.40% and 151.4% above the Telecommunication Services industry median of 4.54. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For XOX Technology Bhd (XKLS:0017), the current ROIC % is 11.40% 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.
XOX Technology Bhd provides mobile solutions and engages in the trading and distribution of fast-moving electronic goods and related products. The company delivers and settles mobile messaging and data services such as SMS, MMS, and WAP, supporting mobile interoperability and various value-added services. Through its subsidiaries, the Group also offers SaaS-based business solutions. Its principal activities further include research and development, the development of proprietary software, mobile solutions, related hardware and equipment, cloud service solutions, and customised software development to support diverse business needs. The company operates across Malaysia, Pakistan, and the United Arab Emirates, with the majority of its revenue generated in Malaysia.
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