Return Trends At Suria Capital Holdings Berhad (KLSE:SURIA) Aren’t Appealing

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. If you see this, it typically means it’s a company with a great business model and plenty of profitable reinvestment opportunities. However, after investigating Suria Capital Holdings Berhad (KLSE:SURIA), we don’t think it’s current trends fit the mold of a multi-bagger.

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If you haven’t worked with ROCE before, it measures the ‘return’ (pre-tax profit) a company generates from capital employed in its business. To calculate this metric for Suria Capital Holdings Berhad, this is the formula:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)

0.029 = RM39m ÷ (RM1.4b – RM92m) (Based on the trailing twelve months to September 2025).

So, Suria Capital Holdings Berhad has an ROCE of 2.9%. In absolute terms, that’s a low return and it also under-performs the Infrastructure industry average of 6.2%.

See our latest analysis for Suria Capital Holdings Berhad

In the above chart we have measured Suria Capital Holdings Berhad’s prior ROCE against its prior performance, but the future is arguably more important. If you’d like, you can check out the forecasts from the analysts covering Suria Capital Holdings Berhad for free.

There hasn’t been much to report for Suria Capital Holdings Berhad’s returns and its level of capital employed because both metrics have been steady for the past five years. It’s not uncommon to see this when looking at a mature and stable business that isn’t re-investing its earnings because it has likely passed that phase of the business cycle. So unless we see a substantial change at Suria Capital Holdings Berhad in terms of ROCE and additional investments being made, we wouldn’t hold our breath on it being a multi-bagger.

In a nutshell, Suria Capital Holdings Berhad has been trudging along with the same returns from the same amount of capital over the last five years. Although the market must be expecting these trends to improve because the stock has gained 70% over the last five years. However, unless these underlying trends turn more positive, we wouldn’t get our hopes up too high.

On a final note, we’ve found 1 warning sign for Suria Capital Holdings Berhad that we think you should be aware of.

While Suria Capital Holdings Berhad may not currently earn the highest returns, we’ve compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.