Latest news with #AutoComponents
Yahoo
17 hours ago
- Automotive
- Yahoo
SHW's (HMSE:SW10) Returns On Capital Not Reflecting Well On The Business
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. However, after investigating SHW (HMSE:SW10), we don't think it's current trends fit the mold of a multi-bagger. 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. 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. To calculate this metric for SHW, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.026 = €6.9m ÷ (€373m - €105m) (Based on the trailing twelve months to December 2024). Thus, SHW has an ROCE of 2.6%. Ultimately, that's a low return and it under-performs the Auto Components industry average of 11%. Check out our latest analysis for SHW Historical performance is a great place to start when researching a stock so above you can see the gauge for SHW's ROCE against it's prior returns. If you're interested in investigating SHW's past further, check out this free graph covering SHW's past earnings, revenue and cash flow. On the surface, the trend of ROCE at SHW doesn't inspire confidence. To be more specific, ROCE has fallen from 8.1% over the last five years. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line. In summary, SHW is reinvesting funds back into the business for growth but unfortunately it looks like sales haven't increased much just yet. And investors appear hesitant that the trends will pick up because the stock has fallen 65% in the last three years. Therefore based on the analysis done in this article, we don't think SHW has the makings of a multi-bagger. On a final note, we found 4 warning signs for SHW (2 make us uncomfortable) you should be aware of. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. 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
2 days ago
- Business
- Yahoo
Return Trends At PWO (ETR:PWO) Aren't Appealing
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. However, after investigating PWO (ETR:PWO), we don't think it's current trends fit the mold of a multi-bagger. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. 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. To calculate this metric for PWO, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.072 = €20m ÷ (€445m - €168m) (Based on the trailing twelve months to March 2025). Thus, PWO has an ROCE of 7.2%. Ultimately, that's a low return and it under-performs the Auto Components industry average of 11%. Check out our latest analysis for PWO In the above chart we have measured PWO's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering PWO for free. Things have been pretty stable at PWO, with its capital employed and returns on that capital staying somewhat the same for the last five years. 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. So don't be surprised if PWO doesn't end up being a multi-bagger in a few years time. This probably explains why PWO is paying out 43% 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. In summary, PWO isn't compounding its earnings but is generating stable returns on the same amount of capital employed. Investors must think there's better things to come because the stock has knocked it out of the park, delivering a 106% gain to shareholders who have held 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. On a final note, we found 3 warning signs for PWO (1 is a bit concerning) you should be aware of. While PWO isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. 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
10-05-2025
- Business
- Yahoo
SAF-Holland First Quarter 2025 Earnings: EPS Misses Expectations
Revenue: €449.2m (down 11% from 1Q 2024). Net income: €13.0m (down 50% from 1Q 2024). Profit margin: 2.9% (down from 5.2% in 1Q 2024). The decrease in margin was driven by lower revenue. EPS: €0.29 (down from €0.58 in 1Q 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 Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 61%. Looking ahead, revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 2.9% growth forecast for the Auto Components industry in Germany. Performance of the German Auto Components industry. The company's share price is broadly unchanged from a week ago. Before you take the next step you should know about the 2 warning signs for SAF-Holland that we have uncovered. 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 while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
10-05-2025
- Automotive
- Yahoo
EDAG Engineering Group First Quarter 2025 Earnings: €0.04 loss per share (vs €0.28 profit in 1Q 2024)
Revenue: €196.1m (down 9.6% from 1Q 2024). Net loss: €976.0k (down by 114% from €7.04m profit in 1Q 2024). €0.04 loss per share (down from €0.28 profit in 1Q 2024). 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. All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 2.9% growth forecast for the Auto Components industry in Germany. Performance of the German Auto Components industry. The company's share price is broadly unchanged from a week ago. Just as investors must consider earnings, it is also important to take into account the strength of a company's balance sheet. We've done some analysis and you can see our take on EDAG Engineering Group's balance sheet. 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 while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
