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Yahoo
9 hours ago
- Business
- Yahoo
Owning 66% in UWC Berhad (KLSE:UWC) means that insiders are heavily invested in the company's future
Key Insights Significant insider control over UWC Berhad implies vested interests in company growth 64% of the business is held by the top 2 shareholders Institutions own 23% of UWC Berhad This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. If you want to know who really controls UWC Berhad (KLSE:UWC), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 66% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk). So, insiders of UWC Berhad have a lot at stake and every decision they make on the company's future is important to them from a financial point of view. In the chart below, we zoom in on the different ownership groups of UWC Berhad. View our latest analysis for UWC Berhad What Does The Institutional Ownership Tell Us About UWC Berhad? Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. We can see that UWC Berhad does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of UWC Berhad, (below). Of course, keep in mind that there are other factors to consider, too. UWC Berhad is not owned by hedge funds. The company's CEO Chai Ng is the largest shareholder with 32% of shares outstanding. For context, the second largest shareholder holds about 32% of the shares outstanding, followed by an ownership of 8.3% by the third-largest shareholder. Interestingly, the second-largest shareholder, Chee Lau is also Chief Operating Officer, again, pointing towards strong insider ownership amongst the company's top shareholders. A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 64% stake. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. Insider Ownership Of UWC Berhad While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our information suggests that insiders own more than half of UWC Berhad. This gives them effective control of the company. Given it has a market cap of RM2.4b, that means they have RM1.6b worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling. General Public Ownership With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over UWC Berhad. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. Next Steps: It's always worth thinking about the different groups who own shares in a company. But to understand UWC Berhad better, we need to consider many other factors. Take risks for example - UWC Berhad has 2 warning signs (and 1 which is a bit concerning) we think you should know about. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. 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. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
9 hours ago
- Business
- Yahoo
Returns On Capital Are Showing Encouraging Signs At Texchem Resources Bhd (KLSE:TEXCHEM)
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. 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. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. Speaking of which, we noticed some great changes in Texchem Resources Bhd's (KLSE:TEXCHEM) returns on capital, so let's have a look. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. What Is Return On Capital Employed (ROCE)? 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. To calculate this metric for Texchem Resources Bhd, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.094 = RM40m ÷ (RM764m - RM339m) (Based on the trailing twelve months to March 2025). Thus, Texchem Resources Bhd has an ROCE of 9.4%. In absolute terms, that's a low return, but it's much better than the Industrials industry average of 7.6%. Check out our latest analysis for Texchem Resources Bhd Above you can see how the current ROCE for Texchem Resources Bhd compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Texchem Resources Bhd . What Can We Tell From Texchem Resources Bhd's ROCE Trend? Even though ROCE is still low in absolute terms, it's good to see it's heading in the right direction. Over the last five years, returns on capital employed have risen substantially to 9.4%. The amount of capital employed has increased too, by 29%. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers. On a separate but related note, it's important to know that Texchem Resources Bhd has a current liabilities to total assets ratio of 44%, which we'd consider pretty high. This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk. Ideally we'd like to see this reduce as that would mean fewer obligations bearing risks. The Bottom Line On Texchem Resources Bhd's ROCE A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what Texchem Resources Bhd has. Since the stock has only returned 37% to shareholders over the last five years, the promising fundamentals may not be recognized yet by investors. So exploring more about this stock could uncover a good opportunity, if the valuation and other metrics stack up. On a final note, we found 2 warning signs for Texchem Resources Bhd (1 is concerning) 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
With 63% ownership, Axis Real Estate Investment Trust (KLSE:AXREIT) boasts of strong institutional backing
Key Insights Significantly high institutional ownership implies Axis Real Estate Investment Trust's stock price is sensitive to their trading actions A total of 6 investors have a majority stake in the company with 53% ownership Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. To get a sense of who is truly in control of Axis Real Estate Investment Trust (KLSE:AXREIT), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 63% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait. Let's delve deeper into each type of owner of Axis Real Estate Investment Trust, beginning with the chart below. See our latest analysis for Axis Real Estate Investment Trust What Does The Institutional Ownership Tell Us About Axis Real Estate Investment Trust? Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. Axis Real Estate Investment Trust already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Axis Real Estate Investment Trust, (below). Of course, keep in mind that there are other factors to consider, too. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Axis Real Estate Investment Trust. The company's largest shareholder is Employees Provident Fund of Malaysia, with ownership of 19%. With 8.7% and 8.4% of the shares outstanding respectively, Kumpulan Wang Persaraan and Permodalan Nasional Berhad are the second and third largest shareholders. We did some more digging and found that 6 of the top shareholders account for roughly 53% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. Insider Ownership Of Axis Real Estate Investment Trust The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our most recent data indicates that insiders own some shares in Axis Real Estate Investment Trust. It has a market capitalization of just RM4.0b, and insiders have RM323m worth of shares, in their own names. This shows at least some alignment. You can click here to see if those insiders have been buying or selling. General Public Ownership The general public, who are usually individual investors, hold a 27% stake in Axis Real Estate Investment Trust. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. Next Steps: It's always worth thinking about the different groups who own shares in a company. But to understand Axis Real Estate Investment Trust better, we need to consider many other factors. For example, we've discovered 3 warning signs for Axis Real Estate Investment Trust (1 is potentially serious!) that you should be aware of before investing here. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Ramssol Group Berhad's (KLSE:RAMSSOL) Stock Is Going Strong: Is the Market Following Fundamentals?
Ramssol Group Berhad's (KLSE:RAMSSOL) stock is up by a considerable 12% over the past three months. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. Specifically, we decided to study Ramssol Group Berhad's ROE in this article. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. 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. How Is ROE Calculated? The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Ramssol Group Berhad is: 13% = RM16m ÷ RM126m (Based on the trailing twelve months to March 2025). The 'return' is the yearly profit. Another way to think of that is that for every MYR1 worth of equity, the company was able to earn MYR0.13 in profit. Check out our latest analysis for Ramssol Group Berhad Why Is ROE Important For Earnings Growth? 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. A Side By Side comparison of Ramssol Group Berhad's Earnings Growth And 13% ROE At first glance, Ramssol Group Berhad seems to have a decent ROE. Yet, the fact that the company's ROE is lower than the industry average of 17% does temper our expectations. Still, we can see that Ramssol Group Berhad has seen a remarkable net income growth of 26% over the past five years. We reckon that there could be other factors at play here. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. Bear in mind, the company does have a respectable ROE. It is just that the industry ROE is higher. So this also does lend some color to the high earnings growth seen by the company. Next, on comparing Ramssol Group Berhad's net income growth with the industry, we found that the company's reported growth is similar to the industry average growth rate of 26% 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 Ramssol Group Berhad fairly valued compared to other companies? These 3 valuation measures might help you decide. Is Ramssol Group Berhad Using Its Retained Earnings Effectively? Ramssol Group Berhad has a really low three-year median payout ratio of 6.4%, meaning that it has the remaining 94% left over to reinvest into its business. So it seems like the management is reinvesting profits heavily to grow its business and this reflects in its earnings growth number. Our latest analyst data shows that the future payout ratio of the company is expected to rise to 9.3% over the next three years. Regardless, the future ROE for Ramssol Group Berhad is speculated to rise to 19% despite the anticipated increase in the payout ratio. There could probably be other factors that could be driving the future growth in the ROE. Summary In total, we are pretty happy with Ramssol Group Berhad's performance. In particular, it's great to see that the company has seen significant growth in its earnings backed by a respectable ROE and a high reinvestment rate. On studying current analyst estimates, we found that analysts expect the company to continue its recent growth streak. 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.
Yahoo
a day ago
- Business
- Yahoo
Berjaya Food Berhad's (KLSE:BJFOOD) largest shareholders are public companies with 59% ownership, individual investors own 14%
Key Insights Significant control over Berjaya Food Berhad by public companies implies that the general public has more power to influence management and governance-related decisions 57% of the company is held by a single shareholder (Berjaya Corporation Berhad) 10% of Berjaya Food Berhad is held by Institutions Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. To get a sense of who is truly in control of Berjaya Food Berhad (KLSE:BJFOOD), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 59% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company. And individual investors on the other hand have a 14% ownership in the company. Let's delve deeper into each type of owner of Berjaya Food Berhad, beginning with the chart below. See our latest analysis for Berjaya Food Berhad What Does The Institutional Ownership Tell Us About Berjaya Food Berhad? Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. Berjaya Food Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Berjaya Food Berhad, (below). Of course, keep in mind that there are other factors to consider, too. Berjaya Food Berhad is not owned by hedge funds. The company's largest shareholder is Berjaya Corporation Berhad, with ownership of 57%. This implies that they have majority interest control of the future of the company. In comparison, the second and third largest shareholders hold about 4.9% and 4.1% of the stock. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. Insider Ownership Of Berjaya Food Berhad The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. We can report that insiders do own shares in Berjaya Food Berhad. In their own names, insiders own RM21m worth of stock in the RM505m company. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying. General Public Ownership The general public-- including retail investors -- own 14% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. Private Company Ownership Our data indicates that Private Companies hold 9.4%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. Public Company Ownership It appears to us that public companies own 59% of Berjaya Food Berhad. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further. Next Steps: While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for Berjaya Food Berhad that you should be aware of. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
