There's Been No Shortage Of Growth Recently For MTQ's (SGX:M05) Returns On Capital
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. Speaking of which, we noticed some great changes in MTQ's (SGX:M05) returns on capital, so let's have a look.
The end of cancer? These 15 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for MTQ, this is the formula:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.069 = S$7.0m ÷ (S$121m - S$18m) (Based on the trailing twelve months to September 2024).
Thus, MTQ has an ROCE of 6.9%. On its own that's a low return on capital but it's in line with the industry's average returns of 6.6%.
Check out our latest analysis for MTQ
While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you're interested in investigating MTQ's past further, check out this free graph covering MTQ's past earnings, revenue and cash flow.
MTQ is showing promise given that its ROCE is trending up and to the right. The figures show that over the last five years, ROCE has grown 154% whilst employing roughly the same amount of capital. So it's likely that the business is now reaping the full benefits of its past investments, since the capital employed hasn't changed considerably. On that front, things are looking good so it's worth exploring what management has said about growth plans going forward.
On a related note, the company's ratio of current liabilities to total assets has decreased to 15%, which basically reduces it's funding from the likes of short-term creditors or suppliers. So shareholders would be pleased that the growth in returns has mostly come from underlying business performance.
As discussed above, MTQ appears to be getting more proficient at generating returns since capital employed has remained flat but earnings (before interest and tax) are up. Since the stock has returned a solid 64% to shareholders over the last five years, it's fair to say investors are beginning to recognize these changes. Therefore, we think it would be worth your time to check if these trends are going to continue.
If you want to continue researching MTQ, you might be interested to know about the 3 warning signs that our analysis has discovered.
If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity.
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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
10 hours ago
- Yahoo
Asian Penny Stocks: YH Entertainment Group And Two Other Promising Picks
As global markets continue to navigate complex economic landscapes, Asian stocks have captured the attention of investors seeking new opportunities. Penny stocks, often representing smaller or newer companies, remain an intriguing area for those looking to uncover potential value. Despite its historical connotations, the term 'penny stock' still signifies a sector where solid financials can lead to significant returns. In this article, we explore three such stocks that combine balance sheet strength with promising prospects in the Asian market. Name Share Price Market Cap Financial Health Rating YKGI (Catalist:YK9) SGD0.10 SGD42.5M ★★★★★★ Lever Style (SEHK:1346) HK$1.16 HK$731.9M ★★★★★★ TK Group (Holdings) (SEHK:2283) HK$2.06 HK$1.72B ★★★★★★ CNMC Goldmine Holdings (Catalist:5TP) SGD0.43 SGD174.27M ★★★★★☆ Goodbaby International Holdings (SEHK:1086) HK$1.23 HK$2.05B ★★★★★★ Halcyon Technology (SET:HTECH) THB2.64 THB792M ★★★★★★ Yangzijiang Shipbuilding (Holdings) (SGX:BS6) SGD2.31 SGD9.09B ★★★★★☆ Beng Kuang Marine (SGX:BEZ) SGD0.184 SGD36.66M ★★★★★★ BRC Asia (SGX:BEC) SGD3.14 SGD861.46M ★★★★★★ Bosideng International Holdings (SEHK:3998) HK$4.56 HK$52.24B ★★★★★★ Click here to see the full list of 1,148 stocks from our Asian Penny Stocks screener. Let's uncover some gems from our specialized screener. Simply Wall St Financial Health Rating: ★★★★★★ Overview: YH Entertainment Group, with a market cap of HK$2.21 billion, primarily operates in artist management in Mainland China and Korea. Operations: The company's revenue is primarily derived from Artist Management at CN¥694.57 million, supplemented by Pan-Entertainment Business and Music IP Production and Operation, contributing CN¥27.76 million and CN¥42.21 million respectively. Market Cap: HK$2.21B YH Entertainment Group, with a market cap of HK$2.21 billion, has shown significant improvement in financial performance, transitioning from a net loss to a net profit of CN¥46.94 million for 2024. This turnaround is attributed to reduced equity-settled share-based payments and the absence of fair value losses following its Hong Kong listing. The company's debt is well covered by operating cash flow, and it holds more cash than total debt, indicating strong liquidity management. However, the stock price remains highly volatile and the board's average tenure suggests limited experience, which could impact strategic stability. Jump into the full analysis health report here for a deeper understanding of YH Entertainment Group. Evaluate YH Entertainment Group's historical performance by accessing our past performance report. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Ju Teng International Holdings Limited is an investment holding company that manufactures and sells casings for notebook computers and handheld devices in China and internationally, with a market cap of HK$1.17 billion. Operations: The company generates revenue of HK$6.03 billion from its operations in manufacturing and selling casings for notebook computers and handheld devices. Market Cap: HK$1.17B Ju Teng International Holdings, with a market cap of HK$1.17 billion, is currently unprofitable, facing increased losses over the past five years. The company's net loss for 2024 was HK$529.89 million due to declining sales and low production utilization rates, exacerbated by shifts in manufacturing locations by major clients. Despite this, its debt management remains satisfactory with a net debt to equity ratio of 26.3%, and short-term assets exceed both short- and long-term liabilities. Recent board changes may influence corporate governance as experienced members retire and new leadership takes on key roles in committees. Dive into the specifics of Ju Teng International Holdings here with our thorough balance sheet health report. Gain insights into Ju Teng International Holdings' historical outcomes by reviewing our past performance report. Simply Wall St Financial Health Rating: ★★★★★★ Overview: Dongguan Rural Commercial Bank Co., Ltd. offers a range of banking products and services in China, with a market capitalization of approximately HK$23.83 billion. Operations: Revenue Segments: No specific revenue segments are reported for this company. Market Cap: HK$23.83B Dongguan Rural Commercial Bank, with a market capitalization of HK$23.83 billion, has experienced a decline in earnings growth over the past year, reporting net income of CNY 1,633.18 million for Q1 2025 compared to CNY 1,919.47 million the previous year. The bank's financial health is supported by an appropriate Loans to Assets ratio of 52% and a sufficient allowance for bad loans at 207%. Despite stable weekly volatility and high-quality past earnings, its Return on Equity remains low at 7.3%. Recent dividend decreases and board changes could impact future strategic decisions and shareholder returns. Click to explore a detailed breakdown of our findings in Dongguan Rural Commercial Bank's financial health report. Examine Dongguan Rural Commercial Bank's earnings growth report to understand how analysts expect it to perform. Get an in-depth perspective on all 1,148 Asian Penny Stocks by using our screener here. Seeking Other Investments? Outshine the giants: these 25 early-stage AI stocks could fund your retirement. 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. Companies discussed in this article include SEHK:2306 SEHK:3336 and SEHK:9889. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
a day ago
- Yahoo
Voyager to Present at H.C. Wainwright 6th Annual Neuro Perspectives Hybrid Conference
LEXINGTON, Mass., June 10, 2025 (GLOBE NEWSWIRE) -- Voyager Therapeutics, Inc. (Nasdaq: VYGR), a biotechnology company dedicated to leveraging genetics to treat neurological diseases, today announced Alfred W. Sandrock, Jr., M.D., Ph.D., Chief Executive Officer of Voyager, and additional members of management will participate in a pre-recorded fireside chat at the H.C. Wainwright 6th Annual Neuro Perspectives Hybrid Conference. An on-demand webcast of the pre-recorded fireside chat will be available and may be accessed from the Investors section of Voyager's website at starting at 7:00 a.m. ET on June 17, 2025. The on-demand webcast will be archived on the Company's website for at least 30 days. About Voyager TherapeuticsVoyager Therapeutics, Inc. (Nasdaq: VYGR) is a biotechnology company dedicated to leveraging the power of human genetics to modify the course of – and ultimately cure – neurological diseases. Our pipeline includes programs for Alzheimer's disease, Friedreich's ataxia, Parkinson's disease, amyotrophic lateral sclerosis (ALS), and multiple other diseases of the central nervous system. Many of our programs are derived from our TRACER™ AAV capsid discovery platform, which we have used to generate novel capsids and identify associated receptors to potentially enable high brain penetration with genetic medicines following intravenous dosing. Some of our programs are wholly owned, and some are advancing with partners including Alexion, AstraZeneca Rare Disease; Novartis Pharma AG; and Neurocrine Biosciences, Inc. For more information, visit Voyager Therapeutics® is a registered trademark, and TRACER™ is a trademark, of Voyager Therapeutics, Inc. ContactsTrista Morrison, tmorrison@ Investors: Sarah McCabe, smccabe@ Brooke Shenkin, brooke@ 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
a day ago
- Yahoo
Investing in StarHub (SGX:CC3) five years ago would have delivered you a 9.3% gain
For many, the main point of investing is to generate higher returns than the overall market. But every investor is virtually certain to have both over-performing and under-performing stocks. So we wouldn't blame long term StarHub Ltd (SGX:CC3) shareholders for doubting their decision to hold, with the stock down 14% over a half decade. So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress. 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. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. Looking back five years, both StarHub's share price and EPS declined; the latter at a rate of 3.0% per year. This change in EPS is remarkably close to the 3% average annual decrease in the share price. That suggests that the market sentiment around the company hasn't changed much over that time. So it's fair to say the share price has been responding to changes in EPS. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). Dive deeper into StarHub's key metrics by checking this interactive graph of StarHub's earnings, revenue and cash flow. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. As it happens, StarHub's TSR for the last 5 years was 9.3%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! While the broader market gained around 22% in the last year, StarHub shareholders lost 4.0% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 1.8%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that StarHub is showing 2 warning signs in our investment analysis , you should know about... But note: StarHub may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Singaporean 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.
