ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. RTS Technology Holdings Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 31.34%.
As of today (2026-06-28), RTS Technology Holdings Bhd's WACC % is 10.07%. RTS Technology Holdings Bhd's ROIC % is 3.32% (calculated using TTM income statement data).
RTS Technology Holdings Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
RTS Technology Holdings Bhd (XKLS:03039) 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, RTS Technology Holdings Bhd's WACC % is 10.07%. RTS Technology Holdings Bhd's ROIC % is 3.32% (calculated using TTM income statement data).
RTS Technology Holdings 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 %, 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.
RTS Technology Holdings Bhd ROIC % Related Terms
RTS Technology Holdings Bhd ROIC % Historical Data
* 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 Information Technology Services subindustry, RTS Technology Holdings 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.
RTS Technology Holdings Bhd ROIC % vs Software Industry
For the Software industry and Technology sector, RTS Technology Holdings Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where RTS Technology Holdings Bhd's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) 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.
RTS Technology Holdings Bhd (XKLS:03039) has a ROIC % of 31.34% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on RTS Technology Holdings Bhd and its competitors.
Is RTS Technology Holdings Bhd's ROIC % too high?
RTS Technology Holdings Bhd's current ROIC % is 31.34%. The Software industry median ROIC % is 3.03. RTS Technology Holdings Bhd's value of 31.34% is 934.3% above this industry median. Overall, RTS Technology Holdings Bhd has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does RTS Technology Holdings Bhd's ROIC % compare to IBM and ACN?
RTS Technology Holdings Bhd's ROIC % of 31.34% can be compared against companies in the Software industry. The industry median ROIC % is 3.03. RTS Technology Holdings Bhd's value of 31.34% is 934.3% 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 Software company?
The median ROIC % among Software companies is 3.03, based on 2,827 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. RTS Technology Holdings Bhd's current ROIC % of 31.34% is 934.3% 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 RTS Technology Holdings Bhd and its competitors. For the Software industry, the median ROIC % is 3.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RTS Technology Holdings Bhd's current ROIC % is 31.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RTS Technology Holdings Bhd stock overvalued right now?
RTS Technology Holdings Bhd (XKLS:03039) has a current ROIC % of 31.34%. The stock's GF Value™ is RM0.30, compared to a current price of RM0.17 — trading 45% below its estimated fair value. The current ROIC % is 31.34% and 934.3% above the Software industry median of 3.03. RTS Technology Holdings Bhd's overall GF Score™ is 34/100 with 5 warning signs to review. 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 RTS Technology Holdings Bhd (XKLS:03039), the current ROIC % is 31.34% as of Dec. 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 RTS Technology Holdings Bhd (XKLS:03039) Overvalued in 2026?
Based on GuruFocus' analysis, RTS Technology Holdings Bhd stock appears to be undervalued.
The current stock price of RM0.17 is trading 45% below its estimated GF Value™ of RM0.30.
Key valuation signals for XKLS:03039:
ROIC %: 31.34%
GF Value™: RM0.30 vs. price of RM0.17 (45% below fair value)
Industry Position: 934.3% above the Software median
No single metric tells the full story. See the XKLS:03039 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RTS Technology Holdings Bhd is a multi-disciplinary technology company committed to providing solutions to help optimize the operational efficiencies of toll collection operations. Along with its subsidiaries, the company operates in the following business segments; Service rendered which derives key revenue and includes design, engineering, and system integration of expressway toll collection system; and the Sale of software system and equipment-related services segment which represents the sale of goods and service rendered which is trading in nature and maintenance service for the expressway toll collection system. Geographically, it derives maximum revenue from its customers in Malaysia followed by Myanmar and Philippines.
34GF Score
Get the complete analysis for XKLS:03039
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XKLS:03039 has been successfully added to your 
