Latest news with #KretamHoldingsBerhad
Yahoo
05-05-2025
- Business
- Yahoo
Solid Earnings May Not Tell The Whole Story For Kretam Holdings Berhad (KLSE:KRETAM)
The recent earnings posted by Kretam Holdings Berhad (KLSE:KRETAM) 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. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Importantly, our data indicates that Kretam Holdings Berhad's profit received a boost of RM80m in unusual items, over the last year. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. 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. Kretam Holdings Berhad had a rather significant contribution from unusual items relative to its profit to December 2024. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Kretam Holdings Berhad. As we discussed above, we think the significant positive unusual item makes Kretam Holdings Berhad's earnings a poor guide to its underlying profitability. As a result, we think it may well be the case that Kretam Holdings Berhad's underlying earnings power is lower than its statutory profit. Nonetheless, it's still worth noting that its earnings per share have grown at 15% over the last three years. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. While conducting our analysis, we found that Kretam Holdings Berhad has 1 warning sign and it would be unwise to ignore it. This note has only looked at a single factor that sheds light on the nature of Kretam Holdings Berhad's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. 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.
Yahoo
14-04-2025
- Business
- Yahoo
Returns Are Gaining Momentum At Kretam Holdings Berhad (KLSE:KRETAM)
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. Speaking of which, we noticed some great changes in Kretam Holdings Berhad's (KLSE:KRETAM) returns on capital, so let's have a look. We check all companies for important risks. See what we found for Kretam Holdings Berhad in our free report. 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. To calculate this metric for Kretam Holdings Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.09 = RM104m ÷ (RM1.3b - RM124m) (Based on the trailing twelve months to December 2024). Therefore, Kretam Holdings Berhad has an ROCE of 9.0%. In absolute terms, that's a low return but it's around the Food industry average of 9.7%. See our latest analysis for Kretam Holdings Berhad While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you'd like to look at how Kretam Holdings Berhad has performed in the past in other metrics, you can view this free graph of Kretam Holdings Berhad's past earnings, revenue and cash flow. We're delighted to see that Kretam Holdings Berhad is reaping rewards from its investments and is now generating some pre-tax profits. Shareholders would no doubt be pleased with this because the business was loss-making five years ago but is is now generating 9.0% on its capital. And unsurprisingly, like most companies trying to break into the black, Kretam Holdings Berhad is utilizing 69% more capital than it was five years ago. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, both common traits of a multi-bagger. Long story short, we're delighted to see that Kretam Holdings Berhad's reinvestment activities have paid off and the company is now profitable. And with a respectable 47% awarded to those who held the stock over the last five years, you could argue that these developments are starting to get the attention they deserve. In light of that, we think it's worth looking further into this stock because if Kretam Holdings Berhad can keep these trends up, it could have a bright future ahead. Before jumping to any conclusions though, we need to know what value we're getting for the current share price. That's where you can check out our that compares the share price and estimated value. While Kretam Holdings Berhad isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. 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
24-03-2025
- Business
- Yahoo
Kretam Holdings Berhad (KLSE:KRETAM) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?
Kretam Holdings Berhad (KLSE:KRETAM) has had a rough three months with its share price down 13%. However, stock prices are usually driven by a company's financial performance over the long term, which in this case looks quite promising. Specifically, we decided to study Kretam Holdings Berhad's ROE in this article. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Put another way, it reveals the company's success at turning shareholder investments into profits. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Kretam Holdings Berhad is: 17% = RM175m ÷ RM1.0b (Based on the trailing twelve months to December 2024). The 'return' is the profit over the last twelve months. So, this means that for every MYR1 of its shareholder's investments, the company generates a profit of MYR0.17. Check out our latest analysis for Kretam Holdings Berhad 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, Kretam Holdings Berhad seems to have a decent ROE. Especially when compared to the industry average of 8.8% the company's ROE looks pretty impressive. This probably laid the ground for Kretam Holdings Berhad's significant 25% net income growth seen over the past five years. We reckon that there could also be other factors at play here. For instance, the company has a low payout ratio or is being managed efficiently. Next, on comparing with the industry net income growth, we found that Kretam Holdings Berhad's growth is quite high when compared to the industry average growth of 15% in the same period, which is great to see. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Kretam Holdings Berhad is trading on a high P/E or a low P/E, relative to its industry. Kretam Holdings Berhad's three-year median payout ratio to shareholders is 19%, which is quite low. This implies that the company is retaining 81% of its profits. So it seems like the management is reinvesting profits heavily to grow its business and this reflects in its earnings growth number. Besides, Kretam Holdings Berhad has been paying dividends over a period of eight years. This shows that the company is committed to sharing profits with its shareholders. Overall, we are quite pleased with Kretam Holdings Berhad's performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. 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
03-03-2025
- Business
- Yahoo
Kretam Holdings Berhad Full Year 2024 Earnings: EPS: RM0.076 (vs RM0.047 in FY 2023)
Revenue: RM730.1m (down 6.9% from FY 2023). Net income: RM174.8m (up 61% from FY 2023). Profit margin: 24% (up from 14% in FY 2023). The increase in margin was driven by lower expenses. EPS: RM0.076 (up from RM0.047 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Kretam Holdings Berhad shares are up 3.0% from a week ago. Be aware that Kretam Holdings Berhad is showing 1 warning sign in our investment analysis that you should know about... 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
25-02-2025
- Business
- Yahoo
With 51% ownership, Kretam Holdings Berhad (KLSE:KRETAM) insiders have a lot at stake
Significant insider control over Kretam Holdings Berhad implies vested interests in company growth 61% of the business is held by the top 2 shareholders Using data from company's past performance alongside ownership research, one can better assess the future performance of a company To get a sense of who is truly in control of Kretam Holdings Berhad (KLSE:KRETAM), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 51% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. So it follows, every decision made by insiders of Kretam Holdings Berhad regarding the company's future would be crucial to them. Let's take a closer look to see what the different types of shareholders can tell us about Kretam Holdings Berhad. Check out our latest analysis for Kretam Holdings Berhad 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. Less than 5% of Kretam Holdings Berhad is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too. Kretam Holdings Berhad is not owned by hedge funds. With a 45% stake, CEO Nyuk Lim is the largest shareholder. In comparison, the second and third largest shareholders hold about 16% and 6.3% of the stock. After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. 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 Kretam Holdings Berhad. This gives them effective control of the company. So they have a RM610m stake in this RM1.2b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently. The general public, who are usually individual investors, hold a 16% stake in Kretam Holdings Berhad. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. Our data indicates that Private Companies hold 26%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company. It appears to us that public companies own 4.1% of Kretam Holdings Berhad. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Kretam Holdings Berhad has 1 warning sign we think you should be aware of. If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data. 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.
