The past five years for NTPM Holdings Berhad (KLSE:NTPM) investors has not been profitable
It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that.
This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.
Given that NTPM Holdings Berhad didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually desire strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last half decade, NTPM Holdings Berhad saw its revenue increase by 4.4% per year. That's not a very high growth rate considering it doesn't make profits. It's likely this weak growth has contributed to an annualised return of 9% for the last five years. We want to see an acceleration of revenue growth (or profits) before showing much interest in this one. However, it's possible too many in the market will ignore it, and there may be an opportunity if it starts to recover down the track.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
This free interactive report on NTPM Holdings Berhad's balance sheet strength is a great place to start, if you want to investigate the stock further.
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, NTPM Holdings Berhad's TSR for the last 5 years was -50%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.
We regret to report that NTPM Holdings Berhad shareholders are down 31% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 5.2%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 8% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that NTPM Holdings Berhad is showing 3 warning signs in our investment analysis , and 2 of those are a bit concerning...
If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges.
—
Investing narratives with Fair Values
Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor
Fair Value Estimated: A$22.83 · 0.1% Overvalued
Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor
Fair Value Estimated: €14.40 · 0.3% Overvalued
Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor
Fair Value Estimated: $359.72 · 0.1% Overvalued
View more featured narratives
—
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.
登入存取你的投資組合
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
29 minutes ago
- Yahoo
JBS kicks off beef exports to 'strategic' Vietnamese market
JBS has sent its first shipment of beef to Vietnam as the Brazilian meat giant looks to tap into the "strategic" market in South East Asia. Publicly listed JBS said in a statement that 27 tonnes of beef left its Mozarlândia factory in Brazil on Saturday (5 July). The site, which produces the company's Friboi meat brand, was recently approved for authorisation to ship to Vietnam, along with its facility in Goiânia. "The opening of the Vietnamese market represents more than the entry into a new commercial destination: it is a strategic move by JBS in Asia, a region with growing demand for animal protein and economic prominence," the company said. A ceremony held in Rio de Janeiro, attended by Vietnamese Prime Minister Phạm Minh Chính and Brazil's Minister of Agriculture Carlos Fávaro, marked the first shipment of Brazilian meat to Vietnam. Marcela Rocha, JBS' executive director of corporate affairs, highlighted the relevance of opening up Vietnam to Brazil: "Being present in this market is positive for the entire national agribusiness chain: rural producers, industries, suppliers and workers.' Rocha added: 'It is a sector that represents 20% of GDP, generates employment and moves regional economies." JBS said in the statement that with a population exceeding 101 million inhabitants, according to the General Statistics Office of Vietnam (GSO), Vietnam imported about 300,000 tons of beef and buffalo in 2024, aimed at domestic consumption by an expanding middle class. It added that Vietnam's GDP growth is estimated to be at 7.6% in the second quarter of this year compared to the same period in 2024, meaning the country is now one of the "most promising markets in South East Asia for animal proteins". JBS noted that "sustained growth and accelerated urbanisation is expected to further drive demand in the coming years and positions Brazil as a strategic supplier to serve this market'. The meat giant said in March it had earmarked $100m to invest in Vietnam with a plan to build two facilities to supply the local market and the rest of South East Asia. Under the first phase of the project, a facility will be constructed in Khu công nghiệp Nam Đình Vũ located in the city of Hải Phòng in north-east Vietnam. It will include a logistics centre with storage facilities, along with 'pre-processing, cutting and packaging activities'. As part of a memorandum of understanding (MoU) signed with the Vietnamese government, the second site will be built in the south of the country in an unspecified location. It will be similar in operation to the first, with construction likely to start two years after production begins at the initial plant. "JBS kicks off beef exports to 'strategic' Vietnamese market" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
an hour ago
- Yahoo
India's Vintage Coffee and Beverages to raise funds for new plant
Vintage Coffee and Beverages Limited plans to raise Rs2.15bn ($25.1m) through equity shares and convertible warrants to fund a new plant. In a stock exchange filing, Vintage Coffee and Beverages said its board of directors has approved issuing up to 15 million equity shares and 2.4 million convertible warrants on a preferential basis. The company aims to increase its spray-dried and agglomerated coffee capacity to 11,000t per annum by 31 March 2026, up from the current 6,500t per annum. Vintage Coffee and Beverages said the funds will support the establishment of a 5,000t per annum freeze-dried coffee plant, enabling it to 'capture volume share in the premium coffee segment'. The investment will also support the expansion across South-East Asia, Latin America, the Middle East, Europe and west Africa. The Hyderabad-based group said it expects the issue to 'bring on board high quality and marquee shareholders of scale and repute'. Balakrishna Tati, the chairman and managing director of Vintage Coffee and Beverages, said the group 'remains at the forefront to capture the global coffee demand backed by quality, service and product innovation'. 'The proposed preferential issue will support VCBL's growth through FY26-FY28. I am thankful to all investors and stakeholders for supporting us in this journey ahead,' he added. Vintage Coffee and Beverages markets products under the Vintage, Filco, Velox and Intulin brands. For the financial year ending 31 March, the company reported revenue of Rs3.08bn and an operating profit of Rs501.4m, up 135% and 139% respectively over the previous year. Profit after tax for FY25 increased to Rs401.5m, a 235% growth over the prior year. "India's Vintage Coffee and Beverages to raise funds for new plant" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Forbes
an hour ago
- Forbes
Buy, Sell, Or Hold IREN Stock At $16?
CHONGQING, CHINA - MAY 11: In this photo illustration, the logo of Iris Energy Ltd. is displayed on ... More a smartphone screen, with the company's green branding visible in the background, on May 11, 2025, in Chongqing, China. (Photo illustration by) IREN (NASDAQ:IREN) – a Bitcoin mining data center operator that utilizes renewable energy sources such as solar and wind – has witnessed an impressive stock increase of nearly 80% over the last month. This notable rise can be linked to several recent positive events: While these developments have undoubtedly thrilled investors, the pivotal question now is whether IREN stock, currently trading at approximately $16 following an 80% rally, remains an attractive investment. Our evaluation indicates that it does. We consider the stock a solid choice at its current price of about $16. However, it is essential to recognize that there are several concerns regarding IREN, particularly its currently elevated valuation, which poses a significant level of risk. Our conclusion is derived from a thorough comparison of IREN's current valuation against its operational performance in recent years, alongside its historical and present financial state. Our analysis across key metrics—Growth, Profitability, Financial Stability, and Downturn Resilience—shows that the company currently exhibits poor operating performance and financial health, as further elaborated below. However, for investors seeking lower volatility than individual stocks, the Trefis High Quality portfolio offers an alternative — having outperformed the S&P 500 and provided returns exceeding 91% since its inception. Separately, refer to – SOUN Stock To $20? How Does IREN's Valuation Compare to the S&P 500? Based on the price you pay per dollar of sales or profit, IREN stock appears costly relative to the broader market. How Have IREN's Revenues Progressed in Recent Years? IREN's revenues have significantly increased in recent years. How Profitable Is IREN? IREN's profit margins are notably poorer than most firms in the Trefis coverage universe. How Resilient Is IREN Stock During Economic Downturns? IREN stock has performed significantly worse than the benchmark S&P 500 index during the inflation downturn in 2022. While investors are hopeful for a soft landing by the U.S. economy, one must consider how severely the situation could worsen if another recession occurs. Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks performed during and after the previous six market crashes. Bringing It All Together: What It Means for IREN Stock In conclusion, IREN's performance across the criteria outlined above is as follows: While our analysis indicates that IREN's operating performance and financial situation are currently weak, which suggests a level of risk, the company's remarkable growth should not be overlooked. Over the past three years, IREN has achieved an average annual growth rate of 270%, a trend we anticipate will continue in triple digits for at least the next couple of years. Given this robust growth path, we believe that a valuation of 9 times trailing revenues is not excessively high and implies that the stock likely has some potential for further appreciation. Therefore, notwithstanding the recognized risks, we conclude that IREN is a worthwhile stock to purchase. Although IREN stock appears promising, investing in a single stock carries risks. Conversely, the Trefis High Quality (HQ) Portfolio, comprising 30 stocks, has a history of comfortably outperforming the S&P 500 over the past four years. What accounts for this? Collectively, HQ Portfolio stocks have delivered superior returns with lower risk compared to the benchmark index; a smoother performance, as evidenced in HQ Portfolio performance metrics.
