Latest news with #KKBEngineeringBerhad
Yahoo
23-04-2025
- Business
- Yahoo
KKB Engineering Berhad (KLSE:KKB) Is Paying Out A Larger Dividend Than Last Year
KKB Engineering Berhad (KLSE:KKB) will increase its dividend on the 24th of June to MYR0.075, which is 7.1% higher than last year's payment from the same period of MYR0.07. This makes the dividend yield 5.4%, which is above the industry average. Our free stock report includes 2 warning signs investors should be aware of before investing in KKB Engineering Berhad. Read for free now. If the payments aren't sustainable, a high yield for a few years won't matter that much. Before making this announcement, KKB Engineering Berhad was paying out quite a large proportion of both earnings and cash flow, with the dividend being 208% of cash flows. Paying out such a high proportion of cash flows can expose the business to needing to cut the dividend if the business runs into some challenges. Looking forward, earnings per share is forecast to rise by 46.9% over the next year. Assuming the dividend continues along the course it has been charting recently, our estimates show the payout ratio being 60% which brings it into quite a comfortable range. See our latest analysis for KKB Engineering Berhad The company has a long dividend track record, but it doesn't look great with cuts in the past. Since 2015, the dividend has gone from MYR0.04 total annually to MYR0.075. This works out to be a compound annual growth rate (CAGR) of approximately 6.5% a year over that time. We have seen cuts in the past, so while the growth looks promising we would be a little bit cautious about its track record. Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. KKB Engineering Berhad's earnings per share has shrunk at 13% a year over the past five years. A sharp decline in earnings per share is not great from from a dividend perspective. Even conservative payout ratios can come under pressure if earnings fall far enough. Over the next year, however, earnings are actually predicted to rise, but we would still be cautious until a track record of earnings growth can be built. In summary, while it's always good to see the dividend being raised, we don't think KKB Engineering Berhad's payments are rock solid. The track record isn't great, and the payments are a bit high to be considered sustainable. This company is not in the top tier of income providing stocks. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For example, we've picked out 2 warning signs for KKB Engineering Berhad that investors should know about before committing capital to this stock. Is KKB Engineering Berhad not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. 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
27-03-2025
- Business
- Yahoo
The past year for KKB Engineering Berhad (KLSE:KKB) investors has not been profitable
The simplest way to benefit from a rising market is to buy an index fund. But if you buy individual stocks, you can do both better or worse than that. Investors in KKB Engineering Berhad (KLSE:KKB) have tasted that bitter downside in the last year, as the share price dropped 11%. That's disappointing when you consider the market declined 0.2%. However, the longer term returns haven't been so bad, with the stock down 4.7% in the last three years. Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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. Unhappily, KKB Engineering Berhad had to report a 1.6% decline in EPS over the last year. This reduction in EPS is not as bad as the 11% share price fall. This suggests the EPS fall has made some shareholders more nervous about the business. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). This free interactive report on KKB Engineering Berhad's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for KKB Engineering Berhad the TSR over the last 1 year was -7.1%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return. While the broader market gained around 0.2% in the last year, KKB Engineering Berhad shareholders lost 7.1% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 2%, each year, over five years. 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. Take risks, for example - KKB Engineering Berhad has 2 warning signs we think 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.
