Latest news with #LaserBond
Yahoo
4 days ago
- Business
- Yahoo
Are LaserBond Limited's (ASX:LBL) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?
LaserBond (ASX:LBL) has had a rough month with its share price down 9.8%. However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. Particularly, we will be paying attention to LaserBond's ROE today. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. Advertisement 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. How To Calculate Return On Equity? 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 LaserBond is: 7.4% = AU$2.9m ÷ AU$39m (Based on the trailing twelve months to December 2024). The 'return' refers to a company's earnings over the last year. So, this means that for every A$1 of its shareholder's investments, the company generates a profit of A$0.07. Advertisement View our latest analysis for LaserBond Why Is ROE Important For Earnings Growth? Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. LaserBond's Earnings Growth And 7.4% ROE At first glance, LaserBond's ROE doesn't look very promising. However, its ROE is similar to the industry average of 8.7%, so we won't completely dismiss the company. Even so, LaserBond has shown a fairly decent growth in its net income which grew at a rate of 7.7%. Given the slightly low ROE, it is likely that there could be some other aspects that are driving this growth. Such as - high earnings retention or an efficient management in place. Advertisement As a next step, we compared LaserBond's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 19% in the same period. ASX:LBL Past Earnings Growth June 10th 2025 Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. What is LBL worth today? The intrinsic value infographic in our free research report helps visualize whether LBL is currently mispriced by the market. Is LaserBond Making Efficient Use Of Its Profits? LaserBond has a healthy combination of a moderate three-year median payout ratio of 42% (or a retention ratio of 58%) and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits. Advertisement Additionally, LaserBond has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Our latest analyst data shows that the future payout ratio of the company is expected to drop to 20% over the next three years. The fact that the company's ROE is expected to rise to 15% over the same period is explained by the drop in the payout ratio. Conclusion In total, it does look like LaserBond has some positive aspects to its business. Specifically, its fairly high earnings growth number, which no doubt was backed by the company's high earnings retention. Still, the low ROE means that all that reinvestment is not reaping a lot of benefit to the investors. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) This 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
08-05-2025
- Business
- Yahoo
LaserBond (ASX:LBL) Will Be Hoping To Turn Its Returns On Capital Around
If you're looking for a multi-bagger, there's a few things to keep an eye out for. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. However, after investigating LaserBond (ASX:LBL), we don't think it's current trends fit the mold of a multi-bagger. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. What Is Return On Capital Employed (ROCE)? Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for LaserBond, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.08 = AU$4.1m ÷ (AU$60m - AU$9.6m) (Based on the trailing twelve months to December 2024). Thus, LaserBond has an ROCE of 8.0%. In absolute terms, that's a low return and it also under-performs the Machinery industry average of 11%. See our latest analysis for LaserBond ASX:LBL Return on Capital Employed May 8th 2025 In the above chart we have measured LaserBond's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for LaserBond . What Does the ROCE Trend For LaserBond Tell Us? When we looked at the ROCE trend at LaserBond, we didn't gain much confidence. To be more specific, ROCE has fallen from 22% over the last five years. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line. The Key Takeaway Bringing it all together, while we're somewhat encouraged by LaserBond's reinvestment in its own business, we're aware that returns are shrinking. Unsurprisingly, the stock has only gained 7.8% over the last five years, which potentially indicates that investors are accounting for this going forward. As a result, if you're hunting for a multi-bagger, we think you'd have more luck elsewhere. If you'd like to know about the risks facing LaserBond, we've discovered 2 warning signs that you should be aware of.
Yahoo
28-04-2025
- Business
- Yahoo
ASX Stocks Estimated Below Intrinsic Value In April 2025
As the Australian market continues to show resilience, with the ASX200 closing up 0.36% at 7,997 points, investors are keenly observing sector performances that drive growth and stability. With sectors like Energy and IT leading gains, identifying stocks trading below their intrinsic value becomes crucial in capitalizing on potential opportunities amidst fluctuating market conditions. Name Current Price Fair Value (Est) Discount (Est) LaserBond (ASX:LBL) A$0.375 A$0.66 43.1% Acrow (ASX:ACF) A$1.075 A$2.04 47.3% Domino's Pizza Enterprises (ASX:DMP) A$25.85 A$51.48 49.8% GenusPlus Group (ASX:GNP) A$2.72 A$5.12 46.9% Medical Developments International (ASX:MVP) A$0.465 A$0.89 47.8% PolyNovo (ASX:PNV) A$1.155 A$1.93 40.2% Integral Diagnostics (ASX:IDX) A$2.29 A$4.08 43.9% Nuix (ASX:NXL) A$2.42 A$4.23 42.8% Electro Optic Systems Holdings (ASX:EOS) A$1.25 A$2.35 46.9% Superloop (ASX:SLC) A$2.39 A$4.58 47.8% Click here to see the full list of 33 stocks from our Undervalued ASX Stocks Based On Cash Flows screener. We'll examine a selection from our screener results. Overview: Domino's Pizza Enterprises Limited operates retail food outlets and has a market cap of A$2.44 billion. Operations: The company generates revenue primarily from its restaurants segment, which accounts for A$2.30 billion. Estimated Discount To Fair Value: 49.8% Domino's Pizza Enterprises is trading at A$25.85, significantly below its estimated fair value of A$51.48, indicating potential undervaluation based on cash flows. Despite a high debt level and recent net loss of A$22.17 million for H1 FY2025, earnings are forecast to grow 43.3% annually, outpacing the Australian market average growth rate. However, revenue growth projections lag behind the market average, and profit margins have declined from last year's figures. Our comprehensive growth report raises the possibility that Domino's Pizza Enterprises is poised for substantial financial growth. Unlock comprehensive insights into our analysis of Domino's Pizza Enterprises stock in this financial health report. Overview: National Storage REIT is the largest self-storage provider in Australia and New Zealand, operating over 225 centers for more than 90,000 residential and commercial customers, with a market cap of A$3.12 billion. Operations: The company's revenue segment is primarily derived from the operation and management of storage centers, generating A$369.99 million. Estimated Discount To Fair Value: 35.4% National Storage REIT, trading at A$2.24, is valued 35.4% below its estimated fair value of A$3.47, suggesting potential undervaluation based on cash flows. Earnings are projected to grow at 21.2% annually, surpassing the Australian market average growth rate; however, profit margins have decreased from last year's figures and debt coverage by operating cash flow is weak. Recent earnings show increased revenue but a decline in net income compared to the previous year. Our earnings growth report unveils the potential for significant increases in National Storage REIT's future results. Get an in-depth perspective on National Storage REIT's balance sheet by reading our health report here. Overview: PWR Holdings Limited specializes in designing, prototyping, producing, testing, validating, and selling cooling products and solutions across various international markets with a market cap of A$642.60 million. Operations: The company's revenue is primarily derived from its PWR Performance Products segment, contributing A$109.04 million, and its PWR C&R segment, adding A$46.48 million. Estimated Discount To Fair Value: 26.5% PWR Holdings is trading at A$6.39, over 26% below its estimated fair value of A$8.69, indicating potential undervaluation based on cash flows. Despite a recent decline in net income to A$4.08 million from A$9.78 million the previous year, earnings are forecast to grow significantly at 24.66% annually, outpacing the Australian market average growth rate of 11.7%. The company also anticipates robust revenue growth and a high return on equity in three years' time. Insights from our recent growth report point to a promising forecast for PWR Holdings' business outlook. Dive into the specifics of PWR Holdings here with our thorough financial health report. Explore the 33 names from our Undervalued ASX Stocks Based On Cash Flows screener here. Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports. Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This 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. Companies discussed in this article include ASX:DMP ASX:NSR and ASX:PWH. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
3 ASX Stocks Estimated To Be Up To 49.8% Below Intrinsic Value
The Australian market has recently experienced significant volatility, with tariff-driven panic selling affecting most sectors and energy stocks being particularly hard hit due to a drop in Brent Crude prices. Amidst these challenging conditions, identifying undervalued stocks can present opportunities for investors looking to capitalize on price discrepancies relative to intrinsic value. Name Current Price Fair Value (Est) Discount (Est) LaserBond (ASX:LBL) A$0.335 A$0.66 49.2% Dusk Group (ASX:DSK) A$0.965 A$1.63 40.9% Nick Scali (ASX:NCK) A$15.29 A$28.61 46.6% Medical Developments International (ASX:MVP) A$0.455 A$0.89 48.9% James Hardie Industries (ASX:JHX) A$32.23 A$60.47 46.7% Deep Yellow (ASX:DYL) A$0.785 A$1.56 49.8% Polymetals Resources (ASX:POL) A$0.71 A$1.41 49.7% Integral Diagnostics (ASX:IDX) A$2.13 A$4.01 46.9% Pantoro (ASX:PNR) A$2.55 A$4.93 48.2% Select Harvests (ASX:SHV) A$5.13 A$9.62 46.7% Click here to see the full list of 34 stocks from our Undervalued ASX Stocks Based On Cash Flows screener. Let's take a closer look at a couple of our picks from the screened companies. Overview: Deep Yellow Limited, with a market cap of A$763.46 million, operates as a uranium exploration company in Namibia and Australia through its subsidiaries. Operations: Revenue Segments (in millions of A$): null Estimated Discount To Fair Value: 49.8% Deep Yellow is trading at A$0.79, significantly below its estimated fair value of A$1.56, suggesting it may be undervalued based on cash flows. The company reported a substantial revenue increase to A$6.29 million for the half-year ended December 2024, though it remains unprofitable with a net loss of A$2.47 million. Expected revenue growth of 137.6% annually outpaces the market average, supporting its potential as an undervalued opportunity despite current losses. In light of our recent growth report, it seems possible that Deep Yellow's financial performance will exceed current levels. Click to explore a detailed breakdown of our findings in Deep Yellow's balance sheet health report. Overview: Lynas Rare Earths Limited operates in the exploration, development, mining, extraction, and processing of rare earth minerals primarily in Australia and Malaysia, with a market capitalization of A$7.19 billion. Operations: Lynas generates revenue from its rare earth operations, amounting to A$482.82 million. Estimated Discount To Fair Value: 12.3% Lynas Rare Earths is trading at A$7.69, slightly below its estimated fair value of A$8.77, indicating potential undervaluation based on cash flows. Recent earnings show a decline in net income to A$5.85 million from A$39.54 million year-on-year, reflecting lower profit margins of 10.5% compared to 33.2%. Despite this, revenue and earnings are forecasted to grow significantly faster than the market average, highlighting growth prospects amidst current financial challenges. Our expertly prepared growth report on Lynas Rare Earths implies its future financial outlook may be stronger than recent results. Click here and access our complete balance sheet health report to understand the dynamics of Lynas Rare Earths. Overview: Megaport Limited offers on-demand interconnection and internet exchange services to enterprises and service providers across regions including Australia, New Zealand, Asia, North America, and Europe, with a market cap of A$1.44 billion. Operations: The company's revenue segments are as follows: Europe generated A$33.85 million, Asia-Pacific contributed A$55.29 million, and North America accounted for A$117.77 million. Estimated Discount To Fair Value: 24.9% Megaport is trading at A$8.96, below its estimated fair value of A$11.94, suggesting undervaluation based on cash flows. Despite a decline in net income to A$0.89 million from A$4.45 million year-on-year, earnings are forecasted to grow significantly faster than the market average at 40.3% annually. Recent partnerships, such as with Aviatrix for enhanced network security and CloudFirst Europe for expanded global reach, further bolster its strategic positioning and potential revenue growth amidst evolving cybersecurity demands. The growth report we've compiled suggests that Megaport's future prospects could be on the up. Click here to discover the nuances of Megaport with our detailed financial health report. Embark on your investment journey to our 34 Undervalued ASX Stocks Based On Cash Flows selection here. Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments. Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This 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. Companies discussed in this article include ASX:DYL ASX:LYC and ASX:MP1. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
27-02-2025
- Business
- Yahoo
LaserBond's (ASX:LBL) Anemic Earnings Might Be Worse Than You Think
Last week's earnings announcement from LaserBond Limited (ASX:LBL) was disappointing to investors, with a sluggish profit figure. We did some analysis, and found that there are some reasons to be cautious about the headline numbers. Check out our latest analysis for LaserBond In order to understand the potential for per share returns, it is essential to consider how much a company is diluting shareholders. As it happens, LaserBond issued 6.4% more new shares over the last year. As a result, its net income is now split between a greater number of shares. Per share metrics like EPS help us understand how much actual shareholders are benefitting from the company's profits, while the net income level gives us a better view of the company's absolute size. You can see a chart of LaserBond's EPS by clicking here. Unfortunately, LaserBond's profit is down 9.4% per year over three years. Even looking at the last year, profit was still down 35%. Sadly, earnings per share fell further, down a full 38% in that time. So you can see that the dilution has had a bit of an impact on shareholders. In the long term, if LaserBond's earnings per share can increase, then the share price should too. But on the other hand, we'd be far less excited to learn profit (but not EPS) was improving. For the ordinary retail shareholder, EPS is a great measure to check your hypothetical "share" of the company's profit. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Over the last year LaserBond issued new shares and so, there's a noteworthy divergence between EPS and net income growth. Therefore, it seems possible to us that LaserBond's true underlying earnings power is actually less than its statutory profit. Sadly, its EPS was down over the last twelve months. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. If you'd like to know more about LaserBond as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 3 warning signs for LaserBond you should be aware of. Today we've zoomed in on a single data point to better understand the nature of LaserBond'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. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. 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
