Latest news with #FiammaHoldingsBerhad
Yahoo
27-03-2025
- Business
- Yahoo
Capital Allocation Trends At Fiamma Holdings Berhad (KLSE:FIAMMA) Aren't Ideal
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. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. In light of that, when we looked at Fiamma Holdings Berhad (KLSE:FIAMMA) and its ROCE trend, we weren't exactly thrilled. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Fiamma Holdings Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.048 = RM37m ÷ (RM1.0b - RM254m) (Based on the trailing twelve months to December 2024). Thus, Fiamma Holdings Berhad has an ROCE of 4.8%. Even though it's in line with the industry average of 4.8%, it's still a low return by itself. See our latest analysis for Fiamma Holdings Berhad 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'd like to look at how Fiamma Holdings Berhad has performed in the past in other metrics, you can view this free graph of Fiamma Holdings Berhad's past earnings, revenue and cash flow. Unfortunately, the trend isn't great with ROCE falling from 8.0% five years ago, while capital employed has grown 32%. Usually this isn't ideal, but given Fiamma Holdings Berhad conducted a capital raising before their most recent earnings announcement, that would've likely contributed, at least partially, to the increased capital employed figure. The funds raised likely haven't been put to work yet so it's worth watching what happens in the future with Fiamma Holdings Berhad's earnings and if they change as a result from the capital raise. To conclude, we've found that Fiamma Holdings Berhad is reinvesting in the business, but returns have been falling. Yet to long term shareholders the stock has gifted them an incredible 174% return in the last five years, so the market appears to be rosy about its future. But if the trajectory of these underlying trends continue, we think the likelihood of it being a multi-bagger from here isn't high. Like most companies, Fiamma Holdings Berhad does come with some risks, and we've found 1 warning sign that 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
28-02-2025
- Business
- Yahoo
Why Fiamma Holdings Berhad's (KLSE:FIAMMA) Shaky Earnings Are Just The Beginning Of Its Problems
The subdued market reaction suggests that Fiamma Holdings Berhad's (KLSE:FIAMMA) recent earnings didn't contain any surprises. However, we believe that investors should be aware of some underlying factors which may be of concern. See our latest analysis for Fiamma Holdings Berhad To properly understand Fiamma Holdings Berhad's profit results, we need to consider the RM17m gain attributed to unusual items. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that's as you'd expect, given these boosts are described as 'unusual'. Fiamma Holdings Berhad had a rather significant contribution from unusual items relative to its profit to December 2024. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power. 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. As we discussed above, we think the significant positive unusual item makes Fiamma Holdings Berhad's earnings a poor guide to its underlying profitability. As a result, we think it may well be the case that Fiamma Holdings Berhad's underlying earnings power is lower than its statutory profit. Sadly, its EPS was down over the last twelve months. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. If you want to do dive deeper into Fiamma Holdings Berhad, you'd also look into what risks it is currently facing. Case in point: We've spotted 2 warning signs for Fiamma Holdings Berhad you should be mindful of and 1 of these can't be ignored. Today we've zoomed in on a single data point to better understand the nature of Fiamma Holdings Berhad's profit. But there are plenty of other ways to inform your opinion of a company. 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. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. 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
23-02-2025
- Business
- Yahoo
Investing in Fiamma Holdings Berhad (KLSE:FIAMMA) five years ago would have delivered you a 154% gain
When you buy a stock there is always a possibility that it could drop 100%. But when you pick a company that is really flourishing, you can make more than 100%. Long term Fiamma Holdings Berhad (KLSE:FIAMMA) shareholders would be well aware of this, since the stock is up 120% in five years. 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 Fiamma Holdings Berhad To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During five years of share price growth, Fiamma Holdings Berhad achieved compound earnings per share (EPS) growth of 7.1% per year. This EPS growth is slower than the share price growth of 17% 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. You can see below how EPS has changed over time (discover the exact values by clicking on the image). It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This free interactive report on Fiamma Holdings Berhad's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. We've already covered Fiamma Holdings Berhad's share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Its history of dividend payouts mean that Fiamma Holdings Berhad's TSR of 154% over the last 5 years is better than the share price return. It's good to see that Fiamma Holdings Berhad has rewarded shareholders with a total shareholder return of 8.0% in the last twelve months. However, that falls short of the 21% TSR per annum it has made for shareholders, each year, over five years. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. 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. For instance, we've identified 2 warning signs for Fiamma Holdings Berhad (1 doesn't sit too well with us) that you should be aware of. If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying. 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
23-02-2025
- Business
- Yahoo
Fiamma Holdings Berhad Full Year 2024 Earnings: EPS: RM0.075 (vs RM0.11 in FY 2023)
Revenue: RM375.0m (down 3.6% from FY 2023). Net income: RM39.8m (down 32% from FY 2023). Profit margin: 11% (down from 15% in FY 2023). EPS: RM0.075 (down from RM0.11 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to stay flat during the next 2 years compared to a 16% growth forecast for the Retail Distributors industry in Asia. Performance of the market in Malaysia. The company's share price is broadly unchanged from a week ago. We don't want to rain on the parade too much, but we did also find 2 warning signs for Fiamma Holdings Berhad (1 is potentially serious!) that you need to be mindful of. 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
