Latest news with #KawanRenergyBerhad
Yahoo
29-05-2025
- Business
- Yahoo
Shareholders Would Enjoy A Repeat Of Kawan Renergy Berhad's (KLSE:KENERGY) Recent Growth In Returns
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So when we looked at the ROCE trend of Kawan Renergy Berhad (KLSE:KENERGY) we really liked what we saw. 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. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on Kawan Renergy Berhad is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.29 = RM27m ÷ (RM116m - RM23m) (Based on the trailing twelve months to January 2025). Therefore, Kawan Renergy Berhad has an ROCE of 29%. In absolute terms that's a great return and it's even better than the Machinery industry average of 7.8%. See our latest analysis for Kawan Renergy Berhad Historical performance is a great place to start when researching a stock so above you can see the gauge for Kawan Renergy Berhad's ROCE against it's prior returns. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of Kawan Renergy Berhad. Investors would be pleased with what's happening at Kawan Renergy Berhad. The numbers show that in the last four years, the returns generated on capital employed have grown considerably to 29%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 155%. 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 related note, the company's ratio of current liabilities to total assets has decreased to 20%, which basically reduces it's funding from the likes of short-term creditors or suppliers. Therefore we can rest assured that the growth in ROCE is a result of the business' fundamental improvements, rather than a cooking class featuring this company's books. All in all, it's terrific to see that Kawan Renergy Berhad is reaping the rewards from prior investments and is growing its capital base. Since the stock has returned a solid 31% to shareholders over the last year, it's fair to say investors are beginning to recognize these changes. In light of that, we think it's worth looking further into this stock because if Kawan Renergy Berhad can keep these trends up, it could have a bright future ahead. Kawan Renergy Berhad does have some risks, we noticed 3 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about. Kawan Renergy Berhad is not the only stock earning high returns. If you'd like to see more, check out our free list of companies earning high returns on equity with solid fundamentals. 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
01-04-2025
- Business
- Yahoo
Kawan Renergy Berhad's (KLSE:KENERGY) Promising Earnings May Rest On Soft Foundations
Unsurprisingly, Kawan Renergy Berhad's (KLSE:KENERGY) stock price was strong on the back of its healthy earnings report. We did some analysis and think that investors are missing some details hidden beneath the profit numbers. In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking. For the year to January 2025, Kawan Renergy Berhad had an accrual ratio of 0.83. Statistically speaking, that's a real negative for future earnings. And indeed, during the period the company didn't produce any free cash flow whatsoever. Over the last year it actually had negative free cash flow of RM14m, in contrast to the aforementioned profit of RM18.7m. We saw that FCF was RM12m a year ago though, so Kawan Renergy Berhad has at least been able to generate positive FCF in the past. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Kawan Renergy Berhad. As we discussed above, we think Kawan Renergy Berhad's earnings were not supported by free cash flow, which might concern some investors. For this reason, we think that Kawan Renergy Berhad's statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company. In further bad news, its earnings per share decreased in the last year. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. So while earnings quality is important, it's equally important to consider the risks facing Kawan Renergy Berhad at this point in time. When we did our research, we found 4 warning signs for Kawan Renergy Berhad (1 can't be ignored!) that we believe deserve your full attention. Today we've zoomed in on a single data point to better understand the nature of Kawan Renergy 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. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. 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
25-03-2025
- Business
- Yahoo
Kawan Renergy Berhad Reports First Quarter 2025 Earnings
Net income: RM4.93m (up by RM4.93m from 1Q 2024). EPS: RM0.009. 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. All figures shown in the chart above are for the trailing 12 month (TTM) period Kawan Renergy Berhad shares are down 8.1% from a week ago. You should always think about risks. Case in point, we've spotted 3 warning signs for Kawan Renergy Berhad you should be aware of, and 1 of them can't be ignored. 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.
