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Yahoo
21 minutes ago
- Yahoo
Coraza Integrated Technology Berhad's (KLSE:CORAZA) Stock Is Rallying But Financials Look Ambiguous: Will The Momentum Continue?
Most readers would already be aware that Coraza Integrated Technology Berhad's (KLSE:CORAZA) stock increased significantly by 8.4% over the past month. However, we wonder if the company's inconsistent financials would have any adverse impact on the current share price momentum. In this article, we decided to focus on Coraza Integrated Technology Berhad's ROE. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. 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. 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 Coraza Integrated Technology Berhad is: 6.3% = RM8.4m ÷ RM133m (Based on the trailing twelve months to March 2025). The 'return' is the yearly profit. One way to conceptualize this is that for each MYR1 of shareholders' capital it has, the company made MYR0.06 in profit. See our latest analysis for Coraza Integrated Technology Berhad What Is The Relationship Between ROE And Earnings Growth? So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. 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 Coraza Integrated Technology Berhad's Earnings Growth And 6.3% ROE At first glance, Coraza Integrated Technology Berhad's ROE doesn't look very promising. However, its ROE is similar to the industry average of 6.2%, so we won't completely dismiss the company. Having said that, Coraza Integrated Technology Berhad's five year net income decline rate was 33%. Remember, the company's ROE is a bit low to begin with. So that's what might be causing earnings growth to shrink. However, when we compared Coraza Integrated Technology Berhad's growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 11% in the same period. This is quite worrisome. 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. Doing so will help them establish if the stock's future looks promising or ominous. 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. Is Coraza Integrated Technology Berhad Efficiently Re-investing Its Profits? 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. It looks like there might be some other reasons to explain the lack in that respect. For example, the business could be in decline. Conclusion In total, we're a bit ambivalent about Coraza Integrated Technology Berhad's performance. While the company does have a high rate of profit retention, its low rate of return is probably hampering its earnings 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. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. 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
21 minutes ago
- Yahoo
Japan index hits record high on earnings boost, other Asian markets ease
By Gregor Stuart Hunter SINGAPORE (Reuters) -Japanese shares surged on Friday after positive earnings reports and expectations the U.S. would remove overlapping tariffs on the country's goods, while shares were down in other Asian markets after a late retreat on Wall Street during the previous session. MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.4% with Hong Kong's market leading declines, after U.S. stocks ended the previous session with mild losses after nearing a one-week high. Meanwhile, Japanese stocks soared, with the Nikkei 225 up 2% and the Topix index hitting a fresh record, trading above 3,000 for the first time. Shares in SoftBank Group rallied as much as 11% after the technology investor reported that it swung back to profit in the first quarter. Sony Group gained 6%, adding to its earnings-fuelled 4.1% advance from Thursday. U.S. stock futures, the S&P 500 e-minis, were up 0.3%, while Nasdaq futures rose 0.4%, on track to extend gains into a third day. The rally for stocks comes "against the backdrop of an emerging titanic dovish pivot at the Federal Reserve," said Tony Sycamore, market analyst at IG in Sydney. U.S. President Donald Trump said on Thursday he would nominate Council of Economic Advisers Chairman Stephen Miran for the vacant seat at the Federal Reserve while the White House seeks a permanent addition to the central bank's governing board and continues its search for a new Fed chair. The market is also digesting a Bloomberg News report that Fed Governor Christopher Waller is the top candidate to replace Chair Jerome Powell, whose term ends on May 15, 2026. The yield on benchmark 10-year Treasury notes rose to 4.2461%, up from the U.S. close of 4.244% on Thursday, after weak demand at an auction of 30-year bonds, the latest in a string of lacklustre sales this week. The rally for Japanese stocks follows a mixed bag of earnings reports for the country's biggest exporters, as some companies like Toyota Motor slashed their profit forecasts, while Sony and Honda said the impact would be less than feared. As the effective date of recent U.S. trade duties arrived, Tokyo's trade negotiator said the U.S. government on Thursday promised it would fine-tune some of its overlapping tariffs on Japanese goods to avoid the duties being paid on some products twice. Hong Kong's Hang Seng Index fell 0.6%, with technology shares leading declines and China's blue-chip CSI 300 index slipped 0.1%. Australian stocks were 0.2% lower. The dollar rose 0.1% against the yen to 147.27. Japanese household spending data released Friday, which provides clues to consumption and wage trends that the Bank of Japan is monitoring to determine the timing of its next rate hike, rose at a slower-than-anticipated 1.3%. The European single currency was flat at $1.1669, having gained 2.23% in a month, while the dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was up 0.2% at 98.124. In commodity markets, Brent futures were unchanged at $66.45, while U.S. crude futures were little changed at $63.81 a barrel. Gold was 0.4% lower, with bullion last trading at $3391.157 per ounce. [GOL/]
CNBC
23 minutes ago
- CNBC
SoftBank Group shares surge 13% to a record high after quarterly profit beat estimates
Shares of SoftBank Group surged 13% Friday to hit a fresh record, following the company's higher-than-expected fiscal first-quarter profit. This marks the Japanese investment firm's fourth straight session of gains, and comes after it closed at a record high in its previous session, before its earnings release. SoftBank's profits for the April to June quarter came in at 421.8 billion yen ($2.87 billion), substantially overshooting LSEG consensus estimates of127.6 billion yen. This marks the investment house's second consecutive quarter of profit and is a sharp reversal from the 174.28 billion yen loss it posted in the same period a year ago. The Japanese giant announced on Thursday that the value of its Vision Funds rose $4.8 billion, its largest gain since the June quarter of 2021. Profit for the Vision Funds segment, which also captures factors such as expenses, hit 451.4 billion yen in the fiscal-first quarter ended June, a reversal from losses in the same period last year. The Japanese giant attributed this to gains from private investments as well as listed companies such as the Singapore-headquartered ride-hailing firm Grab Holdings, and Indian food delivery firm Swiggy. Companies that have received investments through SoftBank's Vision Funds include chip designer Arm Holdings, game software player Animoca Brands and internet technology giant ByteDance. A few of the investment firm's portfolio companies are expected to go public this year. Among them is Indian eyewear retailer Lenskart which filed for an initial public offering on July 29, which includes the issue of fresh shares worth 21.5 billion rupees ($247.58 million). Other companies set to list soon include Japanese mobile payment service operator PayPay, Swedish financial services player Klarna and travel app Klook.
