Latest news with #GuocoLand(Malaysia)Berhad
Yahoo
23-04-2025
- Business
- Yahoo
The past year for GuocoLand (Malaysia) Berhad (KLSE:GUOCO) investors has not been profitable
Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. But if you buy individual stocks, you can do both better or worse than that. Unfortunately the GuocoLand (Malaysia) Berhad (KLSE:GUOCO) share price slid 25% over twelve months. That's well below the market decline of 3.4%. However, the longer term returns haven't been so bad, with the stock down 19% in the last three years. Furthermore, it's down 13% in about a quarter. That's not much fun for holders. Of course, this share price action may well have been influenced by the 8.6% decline in the broader market, throughout the period. It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that. Our free stock report includes 3 warning signs investors should be aware of before investing in GuocoLand (Malaysia) Berhad. Read for free now. 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...' 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 the unfortunate twelve months during which the GuocoLand (Malaysia) Berhad share price fell, it actually saw its earnings per share (EPS) improve by 58%. It could be that the share price was previously over-hyped. The divergence between the EPS and the share price is quite notable, during the year. But we might find some different metrics explain the share price movements better. In contrast, the 20% drop in revenue is a real concern. Many investors see falling revenue as a likely precursor to lower earnings, so this could well explain the weak share price. You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values). Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of GuocoLand (Malaysia) Berhad, it has a TSR of -23% for the last 1 year. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence! We regret to report that GuocoLand (Malaysia) Berhad shareholders are down 23% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 3.4%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. On the bright side, long term shareholders have made money, with a gain of 1.2% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. 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 3 warning signs for GuocoLand (Malaysia) Berhad that you should be aware of. Of course GuocoLand (Malaysia) Berhad may not be the best stock to buy. So you may wish to see this free collection of growth stocks. 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
31-01-2025
- Business
- Yahoo
GuocoLand (Malaysia) Berhad's (KLSE:GUOCO) Shareholders May Want To Dig Deeper Than Statutory Profit
The recent earnings posted by GuocoLand (Malaysia) Berhad (KLSE:GUOCO) were solid, but the stock didn't move as much as we expected. We believe that shareholders have noticed some concerning factors beyond the statutory profit numbers. Check out our latest analysis for GuocoLand (Malaysia) Berhad Importantly, our data indicates that GuocoLand (Malaysia) Berhad's profit received a boost of RM40m in unusual items, over the last year. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. Which is hardly surprising, given the name. We can see that GuocoLand (Malaysia) Berhad's positive unusual items were quite significant relative to its profit in the year to December 2024. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of GuocoLand (Malaysia) Berhad. As previously mentioned, GuocoLand (Malaysia) Berhad's large boost from unusual items won't be there indefinitely, so its statutory earnings are probably a poor guide to its underlying profitability. As a result, we think it may well be the case that GuocoLand (Malaysia) Berhad's underlying earnings power is lower than its statutory profit. The good news is that, its earnings per share increased by 58% in the last year. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. If you want to do dive deeper into GuocoLand (Malaysia) Berhad, you'd also look into what risks it is currently facing. Case in point: We've spotted 3 warning signs for GuocoLand (Malaysia) Berhad you should be aware of. Today we've zoomed in on a single data point to better understand the nature of GuocoLand (Malaysia) 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.
