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24 minutes ago
- Yahoo
We Like The Quality Of Natural Cool Holdings' (Catalist:5IF) Earnings
Explore Natural Cool Holdings's Fair Values from the Community and select yours The market shrugged off Natural Cool Holdings Limited's (Catalist:5IF) solid earnings report. Our analysis showed that there are some concerning factors in the earnings that investors may be cautious of. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. A Closer Look At Natural Cool Holdings' Earnings One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. This ratio tells us how much of a company's profit is not backed by free cashflow. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking. Over the twelve months to June 2025, Natural Cool Holdings recorded an accrual ratio of -0.22. That indicates that its free cash flow quite significantly exceeded its statutory profit. To wit, it produced free cash flow of S$8.5m during the period, dwarfing its reported profit of S$1.98m. Natural Cool Holdings' free cash flow improved over the last year, which is generally good to see. However, that's not all there is to consider. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part. See our latest analysis for Natural Cool Holdings Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Natural Cool Holdings. How Do Unusual Items Influence Profit? While the accrual ratio might bode well, we also note that Natural Cool Holdings' profit was boosted by unusual items worth S$1.2m in the last twelve months. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that's as you'd expect, given these boosts are described as 'unusual'. We can see that Natural Cool Holdings' positive unusual items were quite significant relative to its profit in the year to June 2025. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be. Our Take On Natural Cool Holdings' Profit Performance Natural Cool Holdings' profits got a boost from unusual items, which indicates they might not be sustained and yet its accrual ratio still indicated solid cash conversion, which is promising. Given the contrasting considerations, we don't have a strong view as to whether Natural Cool Holdings's profits are an apt reflection of its underlying potential for profit. If you want to do dive deeper into Natural Cool Holdings, you'd also look into what risks it is currently facing. For example, we've found that Natural Cool Holdings has 4 warning signs (3 are a bit unpleasant!) that deserve your attention before going any further with your analysis. In this article we've looked at a number of factors that can impair the utility of profit numbers, as a guide to a business. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24 minutes ago
- Yahoo
Swift Haulage Berhad Second Quarter 2025 Earnings: EPS: RM0.008 (vs RM0.009 in 2Q 2024)
Swift Haulage Berhad (KLSE:SWIFT) Second Quarter 2025 Results Key Financial Results Revenue: RM188.7m (up 9.2% from 2Q 2024). Net income: RM6.75m (down 19% from 2Q 2024). Profit margin: 3.6% (down from 4.8% in 2Q 2024). The decrease in margin was driven by higher expenses. EPS: RM0.008 (down from RM0.009 in 2Q 2024). We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. All figures shown in the chart above are for the trailing 12 month (TTM) period Swift Haulage Berhad Earnings Insights Looking ahead, revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 7.6% growth forecast for the Logistics industry in Asia. Performance of the market in Malaysia. The company's shares are up 1.1% from a week ago. Risk Analysis It is worth noting though that we have found 4 warning signs for Swift Haulage Berhad (1 doesn't sit too well with us!) that you need to take into consideration. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
33 minutes ago
- Yahoo
Fidelity: In Managing Portfolios, Advisors Are 'Leaning into Growth, But Keeping a Hand on the Brake'
You can find original article here Wealthmanagement. Subscribe to our free daily Wealthmanagement newsletter. In building portfolios for clients, financial advisors are leaning into large cap group domestic equities, developed markets for international equities, high-yield bonds in fixed-income allocations and liquid alternatives as a volatility buffer while increasingly using ETFs as a wrapper for those strategies. Invest in Gold American Hartford Gold: #1 Precious Metals Dealer in the Nation Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase Thor Metals Group: Best Overall Gold IRA That's according to the latest analysis from Fidelity's portfolio construction team based on analysis of 3,198 advisor-managed portfolios from April to June 2025. 'For the near-term, fundamentals look strong, such as corporate earnings. The only uncertainties are policy uncertainty as well as the consistent risk of inflation,' said Mayank Goradia, head of portfolio construction at Fidelity Investments. 'It reinforces the need for diversification and discipline and regularly reviewing and understanding what's inside portfolios. ... Advisors are cautiously optimistic. They are leaning into growth but keeping one hand on the brake.' Not surprisingly, ETF usage continues to grow. Overall, Fidelity found 64% of incoming portfolios had some allocation to ETFs, and, on average, nearly 50% of advisor portfolios are allocated to ETFs. Advisors are most heavily relying on ETFs for U.S. equity exposure—with 72% using ETFs for those allocations, nearly equal to 77% that use mutual funds in that asset class. For international equities, however, just 42% of advisor portfolios use ETFs vs. 78% that use mutual funds. In addition, use of active ETFs continues to grow, with 36% of advisors using active ETFs vs. 13% in 2022. The average allocation to active ETFs was around 22%. The majority of flows into active ETFs were in the domestic large-cap space. 'Flows are going to follow the maturity of the products—the track record and the pedigree,' Goradia said. Active ETFs in the domestic large cap space have been around longer than in other categories and have more of a track record. Fixed-income strategies were next in the active ETF development pipeline, and flows are picking up there now as well, Goradia said. Fidelity found that overall average advisor portfolios are 70% allocated to equities. Of that, 79% is allocated to U.S. stocks vs. 21% for international vs. a mix of 73% to 27% in 2021. Within U.S. equity, the average portfolio includes a 65% allocation to large-caps, 22% to mid-caps and 13% to small caps. By style, growth equities came in at 28%, value at 29% and 43% to core. For non-U.S. equities, advisors had 84% of their allocations in developed markets and 16% in emerging markets. Non-U.S. equities have ridden some tailwinds in 2025, including a weakening dollar, stable fundamentals and strong earnings, and a tilt toward monetary easing policies outside the United States. Tariffs, however, represent a headwind to more trade-reliant economies, particularly in emerging markets. Fixed-income allocations stood at 25% of advisor portfolios, according to Fidelity. Of that, 79% is allocated to investment-grade bonds and 21% to high-yield bonds. 'Bonds are back, not just as a stabilizer but as an income-producing engine,' Goradia said. Allocations are also going for shorter duration of late. 'It has to do with talks about when the Fed starts cutting rates. Advisors are underweight fixed-income, but have enough allocation to investment grade and are supplementing it with high-yield and that's cutting into the average duration.' In addition, with higher correlations between bonds and equities, advisors have sought diversification by looking at liquid alternatives. Overall, Fidelity found that 11% of incoming portfolios had an allocation to liquid alts, with the most popular categories including hedge equity and market-neutral products. 'In a world where stocks and bonds move together, alts are the new shock absorbers,' Goradia said. 'We've never seen this much importance given to diversification. Diversification isn't just about spreading risk, but about building resilience and avoiding uncertainty.' In all, Fidelity said that of advisors using its portfolio construction services, about two-thirds come back on a periodic cadence, engaging between two and 10 times per year. 'They come back ever three months or six months to make sure they still feel good about their exposures.' Sign in to access your portfolio
