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Kuala Lumpur Kepong Bhd (XKLS:2445) ROE % : 6.38% (As of Dec. 2023)


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What is Kuala Lumpur Kepong Bhd ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Kuala Lumpur Kepong Bhd's annualized net income for the quarter that ended in Dec. 2023 was RM908 Mil. Kuala Lumpur Kepong Bhd's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was RM14,234 Mil. Therefore, Kuala Lumpur Kepong Bhd's annualized ROE % for the quarter that ended in Dec. 2023 was 6.38%.

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

XKLS:2445' s ROE % Range Over the Past 10 Years
Min: 4.37   Med: 9.63   Max: 19.9
Current: 4.37

During the past 13 years, Kuala Lumpur Kepong Bhd's highest ROE % was 19.90%. The lowest was 4.37%. And the median was 9.63%.

XKLS:2445's ROE % is ranked worse than
56.26% of 1541 companies
in the Chemicals industry
Industry Median: 5.41 vs XKLS:2445: 4.37

Kuala Lumpur Kepong Bhd ROE % Historical Data

The historical data trend for Kuala Lumpur Kepong 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.

* Premium members only.

Kuala Lumpur Kepong Bhd ROE % Chart

Kuala Lumpur Kepong Bhd Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.74 7.29 19.90 16.57 5.83

Kuala Lumpur Kepong Bhd Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 12.70 5.50 2.35 3.23 6.38

Competitive Comparison of Kuala Lumpur Kepong Bhd's ROE %

For the Specialty Chemicals 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's ROE % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials 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.



Kuala Lumpur Kepong Bhd ROE % Calculation

Kuala Lumpur Kepong Bhd's annualized ROE % for the fiscal year that ended in Sep. 2023 is calculated as

ROE %=Net Income (A: Sep. 2023 )/( (Total Stockholders Equity (A: Sep. 2022 )+Total Stockholders Equity (A: Sep. 2023 ))/ count )
=834.259/( (14287.042+14318.736)/ 2 )
=834.259/14302.889
=5.83 %

Kuala Lumpur Kepong Bhd's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=907.768/( (14318.736+14149.113)/ 2 )
=907.768/14233.9245
=6.38 %

* 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 (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


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:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=907.768/14233.9245
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(907.768 / 22544.208)*(22544.208 / 30635.204)*(30635.204 / 14233.9245)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.03 %*0.7359*2.1523
=ROA %*Equity Multiplier
=2.97 %*2.1523
=6.38 %

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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=907.768/14233.9245
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (907.768 / 1464.628) * (1464.628 / 1934.008) * (1934.008 / 22544.208) * (22544.208 / 30635.204) * (30635.204 / 14233.9245)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6198 * 0.7573 * 8.58 % * 0.7359 * 2.1523
=6.38 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) 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.


Kuala Lumpur Kepong Bhd ROE % Related Terms

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Kuala Lumpur Kepong Bhd (XKLS:2445) Business Description

Traded in Other Exchanges
Address
No. 1, Jalan S.P. Seenivasagam, Wisma Taiko, Ipoh, PRK, MYS, 30000
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 the revenue is generated from its manufacturing segment which is involved in 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.

Kuala Lumpur Kepong Bhd (XKLS:2445) Headlines

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