Latest news with #Aeon(M)Bhd
Yahoo
15-05-2025
- Business
- Yahoo
Here's What To Make Of Aeon (M) Bhd's (KLSE:AEON) Decelerating Rates Of Return
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. In light of that, when we looked at Aeon (M) Bhd (KLSE:AEON) and its ROCE trend, we weren't exactly thrilled. Our free stock report includes 1 warning sign investors should be aware of before investing in Aeon (M) Bhd. Read for free now. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Aeon (M) Bhd: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.075 = RM308m ÷ (RM5.6b - RM1.5b) (Based on the trailing twelve months to December 2024). So, Aeon (M) Bhd has an ROCE of 7.5%. Ultimately, that's a low return and it under-performs the Consumer Retailing industry average of 13%. Check out our latest analysis for Aeon (M) Bhd In the above chart we have measured Aeon (M) Bhd's prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Aeon (M) Bhd . Over the past five years, Aeon (M) Bhd's ROCE and capital employed have both remained mostly flat. It's not uncommon to see this when looking at a mature and stable business that isn't re-investing its earnings because it has likely passed that phase of the business cycle. With that in mind, unless investment picks up again in the future, we wouldn't expect Aeon (M) Bhd to be a multi-bagger going forward. This probably explains why Aeon (M) Bhd is paying out 45% of its income to shareholders in the form of dividends. Given the business isn't reinvesting in itself, it makes sense to distribute a portion of earnings among shareholders. On a side note, Aeon (M) Bhd has done well to reduce current liabilities to 27% of total assets over the last five years. Effectively suppliers now fund less of the business, which can lower some elements of risk. We can conclude that in regards to Aeon (M) Bhd's returns on capital employed and the trends, there isn't much change to report on. Although the market must be expecting these trends to improve because the stock has gained 51% over the last five years. Ultimately, if the underlying trends persist, we wouldn't hold our breath on it being a multi-bagger going forward. One more thing, we've spotted 1 warning sign facing Aeon (M) Bhd that you might find interesting. While Aeon (M) Bhd may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. 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
29-04-2025
- Business
- Yahoo
Aeon (M) Bhd (KLSE:AEON) Will Pay A Larger Dividend Than Last Year At MYR0.045
The board of Aeon Co. (M) Bhd. (KLSE:AEON) has announced that it will be increasing its dividend by 13% on the 19th of June to MYR0.045, up from last year's comparable payment of MYR0.04. This will take the dividend yield to an attractive 3.1%, providing a nice boost to shareholder returns. We've discovered 1 warning sign about Aeon (M) Bhd. View them for free. Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. The last dividend was quite easily covered by Aeon (M) Bhd's earnings. This indicates that a lot of the earnings are being reinvested into the business, with the aim of fueling growth. Looking forward, earnings per share is forecast to rise by 43.9% over the next year. If the dividend continues on this path, the payout ratio could be 33% by next year, which we think can be pretty sustainable going forward. Check out our latest analysis for Aeon (M) Bhd The company's dividend history has been marked by instability, with at least one cut in the last 10 years. Since 2015, the dividend has gone from MYR0.05 total annually to MYR0.045. This works out to be a decline of approximately 1.0% per year over that time. Declining dividends isn't generally what we look for as they can indicate that the company is running into some challenges. With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Earnings have grown at around 3.2% a year for the past five years, which isn't massive but still better than seeing them shrink. Growth of 3.2% may indicate that the company has limited investment opportunity so it is returning its earnings to shareholders instead. While this isn't necessarily a negative, it definitely signals that dividend growth could be constrained in the future unless earnings start to pick up again. Overall, this is a reasonable dividend, and it being raised is an added bonus. The payout ratio looks good, but unfortunately the company's dividend track record isn't stellar. The dividend looks okay, but there have been some issues in the past, so we would be a little bit cautious. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For instance, we've picked out 1 warning sign for Aeon (M) Bhd that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. 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.
Yahoo
29-04-2025
- Business
- Yahoo
Aeon (M) Bhd (KLSE:AEON) Will Pay A Larger Dividend Than Last Year At MYR0.045
The board of Aeon Co. (M) Bhd. (KLSE:AEON) has announced that it will be increasing its dividend by 13% on the 19th of June to MYR0.045, up from last year's comparable payment of MYR0.04. This will take the dividend yield to an attractive 3.1%, providing a nice boost to shareholder returns. We've discovered 1 warning sign about Aeon (M) Bhd. View them for free. Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. The last dividend was quite easily covered by Aeon (M) Bhd's earnings. This indicates that a lot of the earnings are being reinvested into the business, with the aim of fueling growth. Looking forward, earnings per share is forecast to rise by 43.9% over the next year. If the dividend continues on this path, the payout ratio could be 33% by next year, which we think can be pretty sustainable going forward. Check out our latest analysis for Aeon (M) Bhd The company's dividend history has been marked by instability, with at least one cut in the last 10 years. Since 2015, the dividend has gone from MYR0.05 total annually to MYR0.045. This works out to be a decline of approximately 1.0% per year over that time. Declining dividends isn't generally what we look for as they can indicate that the company is running into some challenges. With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Earnings have grown at around 3.2% a year for the past five years, which isn't massive but still better than seeing them shrink. Growth of 3.2% may indicate that the company has limited investment opportunity so it is returning its earnings to shareholders instead. While this isn't necessarily a negative, it definitely signals that dividend growth could be constrained in the future unless earnings start to pick up again. Overall, this is a reasonable dividend, and it being raised is an added bonus. The payout ratio looks good, but unfortunately the company's dividend track record isn't stellar. The dividend looks okay, but there have been some issues in the past, so we would be a little bit cautious. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For instance, we've picked out 1 warning sign for Aeon (M) Bhd that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. 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
12-04-2025
- Business
- Yahoo
Declining Stock and Decent Financials: Is The Market Wrong About Aeon Co. (M) Bhd. (KLSE:AEON)?
It is hard to get excited after looking at Aeon (M) Bhd's (KLSE:AEON) recent performance, when its stock has declined 9.9% over the past three months. However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. Particularly, we will be paying attention to Aeon (M) Bhd's ROE today. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. 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. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Aeon (M) Bhd is: 6.6% = RM128m ÷ RM1.9b (Based on the trailing twelve months to December 2024). The 'return' is the yearly profit. One way to conceptualize this is that for each MYR1 of shareholders' capital it has, the company made MYR0.07 in profit. View our latest analysis for Aeon (M) Bhd Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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 everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. On the face of it, Aeon (M) Bhd's ROE is not much to talk about. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 11% either. Aeon (M) Bhd was still able to see a decent net income growth of 15% over the past five years. We reckon that there could be other factors at play here. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. Next, on comparing with the industry net income growth, we found that Aeon (M) Bhd's growth is quite high when compared to the industry average growth of 11% in the same period, which is great to see. 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. What is AEON worth today? The intrinsic value infographic in our free research report helps visualize whether AEON is currently mispriced by the market. Aeon (M) Bhd has a healthy combination of a moderate three-year median payout ratio of 46% (or a retention ratio of 54%) and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits. Additionally, Aeon (M) Bhd has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 46%. Regardless, the future ROE for Aeon (M) Bhd is predicted to rise to 8.7% despite there being not much change expected in its payout ratio. In total, it does look like Aeon (M) Bhd has some positive aspects to its business. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. 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
28-01-2025
- Business
- Yahoo
Aeon (M) Bhd's (KLSE:AEON) investors will be pleased with their notable 35% return over the last year
If you want to compound wealth in the stock market, you can do so by buying an index fund. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the Aeon Co. (M) Bhd. (KLSE:AEON) share price is up 31% in the last 1 year, clearly besting the market return of around 4.9% (not including dividends). That's a solid performance by our standards! The longer term returns have not been as good, with the stock price only 5.7% higher than it was three years ago. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. View our latest analysis for Aeon (M) Bhd To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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. During the last year Aeon (M) Bhd grew its earnings per share (EPS) by 28%. This EPS growth is reasonably close to the 31% increase in the share price. So this implies that investor expectations of the company have remained pretty steady. It makes intuitive sense that the share price and EPS would grow at similar rates. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). We know that Aeon (M) Bhd has improved its bottom line over the last three years, but what does the future have in store? It might be well worthwhile taking a look at our free report on how its financial position has changed over time. It is important to consider the total shareholder return, as well as the share price return, for any given stock. 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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Aeon (M) Bhd the TSR over the last 1 year was 35%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return. It's good to see that Aeon (M) Bhd has rewarded shareholders with a total shareholder return of 35% in the last twelve months. That's including the dividend. That gain is better than the annual TSR over five years, which is 5%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Aeon (M) Bhd better, we need to consider many other factors. For instance, we've identified 1 warning sign for Aeon (M) Bhd that you should be aware of. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. 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
