Apple Got the Jump on Tariffs, Deciding Years Ago to Make iPhones in India
White buses waited outside to ferry them to a factory where the Apple AAPL 3.18%increase; green up pointing triangle contractor builds iPhones.
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Yahoo
11 minutes ago
- Yahoo
Hong Leong Industries Berhad's (KLSE:HLIND) investors will be pleased with their stellar 127% return over the last five years
Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. And the truth is, you can make significant gains if you buy good quality businesses at the right price. For example, long term Hong Leong Industries Berhad (KLSE:HLIND) shareholders have enjoyed a 63% share price rise over the last half decade, well in excess of the market return of around 3.7% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 18% in the last year, including dividends. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). Over half a decade, Hong Leong Industries Berhad managed to grow its earnings per share at 11% a year. This EPS growth is reasonably close to the 10% average annual increase in the share price. Therefore one could conclude that sentiment towards the shares hasn't morphed very much. Indeed, it would appear the share price is reacting to the EPS. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here. What About Dividends? As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Hong Leong Industries Berhad, it has a TSR of 127% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return. A Different Perspective It's good to see that Hong Leong Industries Berhad has rewarded shareholders with a total shareholder return of 18% in the last twelve months. And that does include the dividend. That's better than the annualised return of 18% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Hong Leong Industries Berhad , and understanding them should be part of your investment process. We will like Hong Leong Industries Berhad better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges. 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. Sign in to access your portfolio
Yahoo
11 minutes ago
- Yahoo
Declining Stock and Solid Fundamentals: Is The Market Wrong About SMRT Holdings Berhad (KLSE:SMRT)?
Explore SMRT Holdings Berhad's Fair Values from the Community and select yours It is hard to get excited after looking at SMRT Holdings Berhad's (KLSE:SMRT) recent performance, when its stock has declined 4.2% over the past three months. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Particularly, we will be paying attention to SMRT Holdings Berhad's ROE today. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. 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. How Do You Calculate Return On Equity? ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for SMRT Holdings Berhad is: 30% = RM27m ÷ RM90m (Based on the trailing twelve months to March 2025). The 'return' is the amount earned after tax over the last twelve months. That means that for every MYR1 worth of shareholders' equity, the company generated MYR0.30 in profit. See our latest analysis for SMRT Holdings Berhad Why Is ROE Important For Earnings Growth? We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. A Side By Side comparison of SMRT Holdings Berhad's Earnings Growth And 30% ROE Firstly, we acknowledge that SMRT Holdings Berhad has a significantly high ROE. Second, a comparison with the average ROE reported by the industry of 11% also doesn't go unnoticed by us. Under the circumstances, SMRT Holdings Berhad's considerable five year net income growth of 72% was to be expected. We then compared SMRT Holdings Berhad's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 15% in the same 5-year period. Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about SMRT Holdings Berhad's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. Is SMRT Holdings Berhad Making Efficient Use Of Its Profits? SMRT Holdings Berhad doesn't pay any regular dividends to its shareholders, meaning that the company has been reinvesting all of its profits into the business. This is likely what's driving the high earnings growth number discussed above. Summary On the whole, we feel that SMRT Holdings Berhad's performance has been quite good. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. 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. 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. Sign in to access your portfolio
Forbes
13 minutes ago
- Forbes
How Google's Pixel 10 Pro Can Defeat Apple's New iPhone 17
Google will launch the new Pixel 10 and Pixel 10 Pro smartphones this month, and the new family of Pixels has an opportunity within reach that no other Pixel has had so far... the chance to take on and claim victory against Apple's iPhone. The latter will launch early in September and will no doubt be seen as 'the best iPhone ever' by the faithful. The Pixel 10 family is not going after that market; they belong to Apple in much the same way that Google has a tranche of users dedicated to the Pixel brand. Sales to these loyal crowds are locked in. The challenge is the group in the middle, the group that will happily swap manufacturers, proficient in living in multiple clouds, and always looking for the best balance. The Pixel 10 family, especially the Pixel 10 Pro, will speak to all of that market. Pixel 10 Pro Wins The Price Discussion First up is the price. Google appears to be keeping the prices of the Pixel 10, Pixel 10 Pro, and Pixel 10 Pro XL in line with the Pixel 9 family launched last year. On the other hand, Apple is set to add a $50 premium across the board for the iPhone 17 handsets. Apple is mitigating this by increasing the base level of storage on these entry-level models, so a like-for-like comparison with the second-tier models of the iPhone 16 will show an effective $50 saving year-on-year. That needs a close reading of the specifications to become clear. A quick comparison online or in-store of the prices will show (as much like-for-like as you can get between Android and iOS) that the Pixel is the more cost-effective option. Pixel 10 Pro Wins This Round Of AI It can't have escaped anyone's notice that artificial intelligence is the latest buzzword in computing. This isn't restricted to mobile; everywhere you turn, you can see AI being used in countless ways. The smartphone is the key computing device for many, and the AI revolution is incredibly visible on the smartphone. At least on Android smartphones. Apple's efforts in artificial intelligence have fallen short of the publicly announced goals at its Worldwide Developer Conference in June 2024. Features that were going to debut on the iPhone 16, then would be coming by the end of the year, may turn up ahead of the iPhone 17 launch. That delay, of more than a year, hands Google a visible win for those expecting modern artificial intelligence on their smartphone. Pixel 10 Pro Has More To Show In 2025 That's just the state of play of AI right now. When the Pixel 10 smartphones are launched, they will have all the added AI benefits from Android 16, as well as the new tools and updates in Google's first-party apps. AI will continue to be one of the buzzwords of 2025. Google will have demonstrated its lead and then extended it as consumers get ready to buy their new smartphones. Apple's AI efforts are still trying to match the promises of June 2024. Those who have purchased the iPhone 16 and iPhone 16 Pro smartphones Add to that the leap forward that Google will make with the launch of Android 16 on the Pixel 10 phones, as well as the new AI features in Google's first-party apps, and you can see how Pixel will have an AI advantage with consumers. Apple's AI promises from WWDC 2025 are less than grand. Advantage Pixel 10 Pro A better price on retail shelves, a better acknowledgement of artificial intelligence, and more new features that will extend its lead in mobile AI. The Pixel 10 and Pixel 10 Pro smartphones have more advantages over the iPhone than the Pixel range has had to date. Now read the latest Pixel 10 Pro headlines in Forbes' weekly Android news digest...
