Latest news with #EnvictusInternationalHoldings'
Yahoo
23-04-2025
- Business
- Yahoo
Returns On Capital Are Showing Encouraging Signs At Envictus International Holdings (SGX:BQD)
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out 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. So on that note, Envictus International Holdings (SGX:BQD) looks quite promising in regards to its trends of return on capital. We've discovered 2 warning signs about Envictus International Holdings. View them for free. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. To calculate this metric for Envictus International Holdings, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.13 = RM46m ÷ (RM546m - RM185m) (Based on the trailing twelve months to September 2024). So, Envictus International Holdings has an ROCE of 13%. On its own, that's a standard return, however it's much better than the 8.4% generated by the Consumer Retailing industry. View our latest analysis for Envictus International Holdings 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 Envictus International Holdings' past further, check out this free graph covering Envictus International Holdings' past earnings, revenue and cash flow. Like most people, we're pleased that Envictus International Holdings is now generating some pretax earnings. While the business is profitable now, it used to be incurring losses on invested capital five years ago. At first glance, it seems the business is getting more proficient at generating returns, because over the same period, the amount of capital employed has reduced by 24%. The reduction could indicate that the company is selling some assets, and considering returns are up, they appear to be selling the right ones. For the record though, there was a noticeable increase in the company's current liabilities over the period, so we would attribute some of the ROCE growth to that. Effectively this means that suppliers or short-term creditors are now funding 34% of the business, which is more than it was five years ago. It's worth keeping an eye on this because as the percentage of current liabilities to total assets increases, some aspects of risk also increase. In summary, it's great to see that Envictus International Holdings has been able to turn things around and earn higher returns on lower amounts of capital. And a remarkable 182% total return over the last five years tells us that investors are expecting more good things to come in the future. Therefore, we think it would be worth your time to check if these trends are going to continue. If you'd like to know about the risks facing Envictus International Holdings, we've discovered 2 warning signs that you should be aware of. 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) 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
04-02-2025
- Business
- Yahoo
Investing in Envictus International Holdings (SGX:BQD) three years ago would have delivered you a 186% gain
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you buy shares in a really great company, you can more than double your money. To wit, the Envictus International Holdings Limited (SGX:BQD) share price has flown 186% in the last three years. That sort of return is as solid as granite. On the other hand, the stock price has retraced 5.9% in the last week. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. View our latest analysis for Envictus International Holdings 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. Envictus International Holdings became profitable within the last three years. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. It might be well worthwhile taking a look at our free report on Envictus International Holdings' earnings, revenue and cash flow. Envictus International Holdings shareholders gained a total return of 4.9% during the year. But that return falls short of the market. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 21% over five years. Maybe the share price is just taking a breather while the business executes on its growth strategy. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Envictus International Holdings is showing 4 warning signs in our investment analysis , you should know about... Envictus International Holdings is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying. 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. Sign in to access your portfolio
