Is Coraza Integrated Technology Berhad’s (KLSE:CORAZA) Recent Stock Performance Influenced By Its Fundamentals In Any Way?

Coraza Integrated Technology Berhad’s (KLSE:CORAZA) stock is up by a considerable 28% over the past month. As most would know, fundamentals are what usually guide market price movements over the long-term, so we decided to look at the company’s key financial indicators today to determine if they have any role to play in the recent price movement. Particularly, we will be paying attention to Coraza Integrated Technology Berhad’s ROE today.

ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder’s equity.

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The formula for ROE is:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders’ Equity

So, based on the above formula, the ROE for Coraza Integrated Technology Berhad is:

11% = RM15m ÷ RM140m (Based on the trailing twelve months to September 2025).

The ‘return’ is the yearly profit. So, this means that for every MYR1 of its shareholder’s investments, the company generates a profit of MYR0.11.

See our latest analysis for Coraza Integrated Technology Berhad

Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or “retains” for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.

When you first look at it, Coraza Integrated Technology Berhad’s ROE doesn’t look that attractive. However, the fact that the its ROE is quite higher to the industry average of 6.8% doesn’t go unnoticed by us. But seeing Coraza Integrated Technology Berhad’s five year net income decline of 15% over the past five years, we might rethink that. Bear in mind, the company does have a slightly low ROE. It is just that the industry ROE is lower. So that could be one of the factors that are causing earnings growth to shrink.

That being said, we compared Coraza Integrated Technology Berhad’s performance with the industry and were concerned when we found that while the company has shrunk its earnings, the industry has grown its earnings at a rate of 1.6% in the same 5-year period.

KLSE:CORAZA Past Earnings Growth January 16th 2026

Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. If you’re wondering about Coraza Integrated Technology Berhad’s’s valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.

Coraza Integrated Technology Berhad doesn’t pay any regular dividends, meaning that potentially all of its profits are being reinvested in the business, which doesn’t explain why the company’s earnings have shrunk if it is retaining all of its profits. So there could be some other explanations in that regard. For instance, the company’s business may be deteriorating.

On the whole, we do feel that Coraza Integrated Technology Berhad has some positive attributes. Yet, the low earnings growth is a bit concerning, especially given that the company has a respectable rate of return and is reinvesting a huge portion of its profits. By the looks of it, there could be some other factors, not necessarily in control of the business, that’s preventing growth. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. To know more about the company’s future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.

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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.