by Explore the honest values of RGB International BHD of the community and select yours
Finding a company that can grow considerably is not easy, but it is possible if we look at a few important financial statistics. In a perfect world we would like to see a company investing more capital in its company and ideally the return that has been achieved from that capital also increases. When you see this, this usually means that it is a company with a great business model and many profitable reinvestment options. So when we looked at RGB International BHD (KLSE: RGB) and the trend of Roce, we really thought of what we saw.
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To clarify if you are not sure, ROCE is a statistics to evaluate how much income before taxes (in percentage terms) a company earns in the capital that has been invested in his company. The formula for this calculation on RGB International BHD is:
Return of capital employed = income before interest and tax (EBIT) ÷ (total assets – current obligations)
0.17 = RM80M ÷ (RM655M – RM193M) (Based on the backlog from twelve months to March 2025).
So, so, RGB International BHD has a ROCE of 17%. In itself that is a standard return, but it is much better than the 8.1% generated by the hospitality industry.
View our latest analysis for RGB International BHD
Historical achievements are a great place to start in investigating a stock, so that you can see the meter above for RGB International BHD’s ROCE against the earlier return. If you want to delve into historical income, view it free Graphs describing turnover and cash flow performance of RGB International BHD.
We love the trends we see from RGB International BHD. The figures show that in the past five years the return that is generated on the service of capital has grown considerably to 17%. In principle, the company earns more capital invested per dollar and now also 35% more capital is being employed. The increasing return on a growing amount of capital is common with multi-baggers and that is why we are impressed.
In summary, it is great to see that RGB International BHD can worsen the return by consistently investing the capital against increasing returns, because these are some of the most important ingredients of those highly sought after multi-baggers. And a remarkable total return of 110% in the past five years tells us that investors expect more good things in the future. So given the share has proven that it has promising trends, it is worthwhile to further investigate the company to see if these trends will probably continue to exist.
