Latest news with #HOC
Yahoo
02-06-2025
- Business
- Yahoo
Has Hochschild Mining plc's (LON:HOC) Impressive Stock Performance Got Anything to Do With Its Fundamentals?
Most readers would already be aware that Hochschild Mining's (LON:HOC) stock increased significantly by 49% over the past three months. We wonder if and what role the company's financials play in that price change as a company's long-term fundamentals usually dictate market outcomes. In this article, we decided to focus on Hochschild Mining's ROE. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. 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. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Hochschild Mining is: 17% = US$114m ÷ US$687m (Based on the trailing twelve months to December 2024). The 'return' is the yearly profit. One way to conceptualize this is that for each £1 of shareholders' capital it has, the company made £0.17 in profit. Check out our latest analysis for Hochschild Mining So far, we've learned that ROE is a measure of a company's profitability. 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. At first glance, Hochschild Mining seems to have a decent ROE. Further, the company's ROE compares quite favorably to the industry average of 12%. As you might expect, the 7.8% net income decline reported by Hochschild Mining is a bit of a surprise. We reckon that there could be some other factors at play here that are preventing the company's growth. Such as, the company pays out a huge portion of its earnings as dividends, or is faced with competitive pressures. So, as a next step, we compared Hochschild Mining's performance against the industry and were disappointed to discover that while the company has been shrinking its earnings, the industry has been growing its earnings at a rate of 10% over the last few years. Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. Is HOC fairly valued? This infographic on the company's intrinsic value has everything you need to know. Looking at its three-year median payout ratio of 29% (or a retention ratio of 71%) which is pretty normal, Hochschild Mining's declining earnings is rather baffling as one would expect to see a fair bit of growth when a company is retaining a good portion of its profits. It looks like there might be some other reasons to explain the lack in that respect. For example, the business could be in decline. Moreover, Hochschild Mining has been paying dividends for nine years, which is a considerable amount of time, suggesting that management must have perceived that the shareholders prefer consistent dividends even though earnings have been shrinking. Our latest analyst data shows that the future payout ratio of the company is expected to drop to 20% over the next three years. As a result, the expected drop in Hochschild Mining's payout ratio explains the anticipated rise in the company's future ROE to 21%, over the same period. Overall, we feel that Hochschild Mining certainly does have some positive factors to consider. However, given the high ROE and high profit retention, we would expect the company to be delivering strong earnings growth, but that isn't the case here. This suggests that there might be some external threat to the business, that's hampering its growth. That being so, the latest industry analyst forecasts show that the analysts are expecting to see a huge improvement in the company's earnings growth rate. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts 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.
The Journal
15-05-2025
- Business
- The Journal
No value for money assessment conducted on bike shelter project, long-awaited audit finds
A LONG-AWAITED internal audit on the €336,000 Leinster House bike shed has found that no value for money assessment was ever conducted in advance of the works. The report, which has been published by the OPW this afternoon, found the costs of the OPW project had never been communicated to the Houses of the Oireachtas and that there was a lack of clear guidelines for oversight of projects worth less than €500,000. The report, which was carried out by Deloitte, made three high priority findings and said there was an 'absence of some fundamental good practices' for projects like the controversial bike shed. It said a value for money assessment should have been conducted as part of a 'robust options appraisal process.' The internal audit said this would have included looking more closely at 'lower cost alternatives' as well as the possibility of 'doing nothing.' It said: 'Approval to proceed with the project should only have been formalised when these evaluations were complete.' The audit also found there was no proper governance structure in place for projects that had a value of less than half a million Euro. 'The OPW cannot demonstrate how value for money was considered across all aspects of the decision to proceed with the delivery of the covered bike shelter project,' the report states. The report also found that management at Leinster House had not been given any information on how much the project would cost until it was completed. The audit went on to state that the June 2021 decision to proceed with the bike shed project was made without presentation or discussion of project costs. 'The HOC [Houses of the Oireachtas Commission] did not request cost information and the OPW did not present cost information,' it added. Advertisement The HOC is the governing body which oversees the delivery of services, with some members of the Oireachtas sitting on the commission. The auditors said when this happened there was a higher risk of poor value for money and 'an increased risk of mismatch in expectations on delivery versus cost of delivery.' The audit also found that while the Office of Public Works had a programme management plan in place, it was 'not necessarily easy to navigate' especially for smaller projects like the bicycle shelter. It said: 'Where there is a lack of oversight of projects there is a risk that these projects may not represent value for money or may not deliver to exact requirements in an efficient and effective manner.' There was a finding made as well that some of the paperwork for the project had not been signed or dated properly. In its findings, the internal auditors said there should be 'sample-based spot checks' made to ensure compliance. The report found more generally that the OPW's internal auditors were not always provided timely updates or information by colleagues. It said: 'Where the [head of internal audit] is not at an equivalent level to the senior management team, there is a risk of lack of engagement from management. '[There is also] a risk that the ARC [Audit and Risk Committee] is not receiving the appropriate assurance as to the effectiveness of the control environment within the OPW.' The report was released by the OPW following an appeal made under Freedom of Information laws. The OPW later published the report in full on its website. In a statement issued today, the OPW said it accepted the audit report's findings stating that the future focused recommendations made in the report around control measures will enhance capital expenditure practices across the OPW, with a specific focus on projects costing €500,000 or below. The OPW said the report will provide 'a focus for continuing to strengthen ways of working across the OPW' and it will 'provide a platform from which control improvements can be made for capital projects into the future'. With reporting by Christina Finn Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Al Etihad
12-05-2025
- Sport
- Al Etihad
Luwsail claims UAE President's Cup in ParisLongchamp
ABU DHABI (ALETIHAD) The 32nd edition of the UAE President's Cup for Purebred Arabian Horses had a remarkable debut on European turf, drawing global attention at the ParisLongchamp Racecourse. The event was part of a prestigious card featuring the Emirates French Guineas. Held under the patronage of His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister of the UAE, and Chairman of the Presidential Court, the series aims to preserve the heritage of Arabian horse racing while supporting breeders and owners internationally. The highlight of the evening, UAE President's Cup – Coupe d'Europe des Chevaux Arabes, was won by Luwsail (Al Mourtajez x Doha by Manganate). Owned by Al Shaqab Racing, trained by Jean de Mieulle, and ridden by Faleh Bughenaim, Luwsail produced a dominant performance over 2,000 metres in the Group 1 race for Purebred Arabians. This was his second UAE President's Cup title having previously won at Doncaster. His strong finish earned him the top spot in the €350,000 feature race. In second place was RB Kingmaker, trained by Jacques Bernard and ridden by Cristian Demuro. Third place went to Muraad (Thaqib x Jabara), trained by Damien de Watrigant and partnered with jockey Maxime Guyon. The evening also featured two Group 1 classics under the Emirates banner. Henri Matisse, trained by Aidan O'Brien and ridden by Ryan Moore, emerged victorious in the Emirates Poule d'Essai des Poulains (French 2,000 Guineas) over 1,600m, collecting the €650,000 prize. In the Emirates Poule d'Essai des Pouliches (French 1,000 Guineas), Zarigana, owned by The Aga Khan, trained by Francis-Henri Graffard and ridden by Mickael Barzalona, took top honours over 1,600m, earning €550,000 in prize money. The event welcomed distinguished guests including Fahad Saeed Al Raqbani, UAE Ambassador to France; Faisal Al Rahmani, Secretary-General of the Higher Organising Committee (HOC) for the UAE President's Cup Series; Guillaume de Saint-Seine, President of France Gallop; and Ali Abdullah Al Ali, UAE Permanent Delegate to UNESCO, alongside other dignitaries and industry leaders. Commenting on the event, Muslim Al Amri, the HOC member said: "The vision of His Highness Sheikh Mansour bin Zayed has propelled the UAE President's Cup to the forefront of global Arabian racing. The ParisLongchamp event showcased the Cup's growing international stature and strengthened our collaboration with France Galop, reflecting the deep-rooted ties between the UAE and France."
