Latest news with #BMGreenTechBerhad
Yahoo
18-04-2025
- Business
- Yahoo
Here's Why We Think BM GreenTech Berhad (KLSE:BMGREEN) Is Well Worth Watching
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in BM GreenTech Berhad (KLSE:BMGREEN). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. We've discovered 1 warning sign about BM GreenTech Berhad. View them for free. If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Impressively, BM GreenTech Berhad has grown EPS by 21% per year, compound, in the last three years. If the company can sustain that sort of growth, we'd expect shareholders to come away satisfied. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. The music to the ears of BM GreenTech Berhad shareholders is that EBIT margins have grown from 9.4% to 14% in the last 12 months and revenues are on an upwards trend as well. That's great to see, on both counts. You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers. Check out our latest analysis for BM GreenTech Berhad In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of BM GreenTech Berhad's forecast profits? It's a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. So it is good to see that BM GreenTech Berhad insiders have a significant amount of capital invested in the stock. Indeed, they hold RM212m worth of its stock. This considerable investment should help drive long-term value in the business. That amounts to 18% of the company, demonstrating a degree of high-level alignment with shareholders. For growth investors, BM GreenTech Berhad's raw rate of earnings growth is a beacon in the night. Further, the high level of insider ownership is impressive and suggests that the management appreciates the EPS growth and has faith in BM GreenTech Berhad's continuing strength. The growth and insider confidence is looked upon well and so it's worthwhile to investigate further with a view to discern the stock's true value. You should always think about risks though. Case in point, we've spotted 1 warning sign for BM GreenTech Berhad you should be aware of. While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in MY with promising growth potential and insider confidence. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. 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
02-04-2025
- Business
- Yahoo
BM GreenTech Berhad's (KLSE:BMGREEN) Recent Stock Performance Looks Decent- Can Strong Fundamentals Be the Reason?
BM GreenTech Berhad's (KLSE:BMGREEN) stock is up by 5.2% over the past three months. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. Specifically, we decided to study BM GreenTech Berhad's ROE in this article. 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. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. 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 BM GreenTech Berhad is: 8.9% = RM50m ÷ RM563m (Based on the trailing twelve months to December 2024). The 'return' is the profit over the last twelve months. So, this means that for every MYR1 of its shareholder's investments, the company generates a profit of MYR0.09. View our latest analysis for BM GreenTech Berhad Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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 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. When you first look at it, BM GreenTech Berhad's ROE doesn't look that attractive. However, the fact that the its ROE is quite higher to the industry average of 6.6% doesn't go unnoticed by us. Consequently, this likely laid the ground for the decent growth of 12% seen over the past five years by BM GreenTech Berhad. That being said, the company does have a slightly low ROE to begin with, just that it is higher than the industry average. Therefore, the growth in earnings could also be the result of other factors. E.g the company has a low payout ratio or could belong to a high growth industry. Next, on comparing with the industry net income growth, we found that BM GreenTech Berhad's growth is quite high when compared to the industry average growth of 8.6% in the same period, which is great to see. Earnings growth is a huge factor in stock valuation. 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 BM GreenTech Berhad's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. BM GreenTech Berhad has a healthy combination of a moderate three-year median payout ratio of 43% (or a retention ratio of 57%) 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, BM GreenTech Berhad 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. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 22% over the next three years. As a result, the expected drop in BM GreenTech Berhad's payout ratio explains the anticipated rise in the company's future ROE to 15%, over the same period. On the whole, we feel that BM GreenTech Berhad's performance has been quite good. Specifically, we like that it has been reinvesting a high portion of its profits at a moderate rate of return, resulting in earnings expansion. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. 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
18-03-2025
- Business
- Yahoo
BM GreenTech Berhad's (KLSE:BMGREEN) investors will be pleased with their massive 471% return over the last five years
We think all investors should try to buy and hold high quality multi-year winners. While the best companies are hard to find, but they can generate massive returns over long periods. For example, the BM GreenTech Berhad (KLSE:BMGREEN) share price is up a whopping 410% in the last half decade, a handsome return for long term holders. And this is just one example of the epic gains achieved by some long term investors. In the last week the share price is up 2.9%. So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress. Check out our latest analysis for BM GreenTech Berhad There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Over half a decade, BM GreenTech Berhad managed to grow its earnings per share at 5.8% a year. This EPS growth is slower than the share price growth of 39% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). We know that BM GreenTech Berhad has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check this free report showing consensus revenue forecasts. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for BM GreenTech Berhad the TSR over the last 5 years was 471%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! We're pleased to report that BM GreenTech Berhad shareholders have received a total shareholder return of 93% over one year. And that does include the dividend. That gain is better than the annual TSR over five years, which is 42%. 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 BM GreenTech Berhad better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for BM GreenTech Berhad you should know about. 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
Yahoo
04-03-2025
- Business
- Yahoo
BM GreenTech Berhad's (KLSE:BMGREEN) Earnings May Just Be The Starting Point
When companies post strong earnings, the stock generally performs well, just like BM GreenTech Berhad's (KLSE:BMGREEN) stock has recently. We did some digging and found some further encouraging factors that investors will like. View our latest analysis for BM GreenTech Berhad As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. The ratio shows us how much a company's profit exceeds its FCF. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. Over the twelve months to December 2024, BM GreenTech Berhad recorded an accrual ratio of -0.19. That implies it has very good cash conversion, and that its earnings in the last year actually significantly understate its free cash flow. To wit, it produced free cash flow of RM96m during the period, dwarfing its reported profit of RM48.5m. BM GreenTech Berhad's free cash flow improved over the last year, which is generally good to see. Notably, the company has issued new shares, thus diluting existing shareholders and reducing their share of future earnings. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. One essential aspect of assessing earnings quality is to look at how much a company is diluting shareholders. BM GreenTech Berhad expanded the number of shares on issue by 33% over the last year. As a result, its net income is now split between a greater number of shares. Per share metrics like EPS help us understand how much actual shareholders are benefitting from the company's profits, while the net income level gives us a better view of the company's absolute size. Check out BM GreenTech Berhad's historical EPS growth by clicking on this link. As you can see above, BM GreenTech Berhad has been growing its net income over the last few years, with an annualized gain of 134% over three years. But EPS was only up 121% per year, in the exact same period. And the 71% profit boost in the last year certainly seems impressive at first glance. But in comparison, EPS only increased by 62% over the same period. So you can see that the dilution has had a fairly significant impact on shareholders. In the long term, earnings per share growth should beget share price growth. So BM GreenTech Berhad shareholders will want to see that EPS figure continue to increase. However, if its profit increases while its earnings per share stay flat (or even fall) then shareholders might not see much benefit. For that reason, you could say that EPS is more important that net income in the long run, assuming the goal is to assess whether a company's share price might grow. At the end of the day, BM GreenTech Berhad is diluting shareholders which will dampen earnings per share growth, but its accrual ratio showed it can back up its profits with free cash flow. Considering the aforementioned, we think that BM GreenTech Berhad's profits are probably a reasonable reflection of its underlying profitability; although we'd be confident in that conclusion if we saw a cleaner set of results. If you want to do dive deeper into BM GreenTech Berhad, you'd also look into what risks it is currently facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of BM GreenTech Berhad. In this article we've looked at a number of factors that can impair the utility of profit numbers, as a guide to a business. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. 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
27-02-2025
- Business
- Yahoo
News Flash: Analysts Just Made A Notable Upgrade To Their BM GreenTech Berhad (KLSE:BMGREEN) Forecasts
BM GreenTech Berhad (KLSE:BMGREEN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The stock price has risen 7.4% to RM1.89 over the past week, suggesting investors are becoming more optimistic. Could this big upgrade push the stock even higher? After the upgrade, the two analysts covering BM GreenTech Berhad are now predicting revenues of RM539m in 2025. If met, this would reflect a credible 7.3% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 28% to RM0.09. Prior to this update, the analysts had been forecasting revenues of RM471m and earnings per share (EPS) of RM0.08 in 2025. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates. Check out our latest analysis for BM GreenTech Berhad With these upgrades, we're not surprised to see that the analysts have lifted their price target 24% to RM1.99 per share. One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that BM GreenTech Berhad's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.3% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 15% per year. Factoring in the forecast slowdown in growth, it seems obvious that BM GreenTech Berhad is also expected to grow slower than other industry participants. The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at BM GreenTech Berhad. Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for BM GreenTech Berhad going out as far as 2027, and you can see them free on our platform here. Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders. 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
