Latest news with #Lewellen
Yahoo
25-05-2025
- Business
- Yahoo
Shareholders Can Be Confident That Constellation Software's (TSE:CSU) Earnings Are High Quality
Constellation Software Inc. (TSE:CSU) just reported healthy earnings but the stock price didn't move much. Our analysis suggests that investors might be missing some promising details. 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. 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. The ratio shows us how much a company's profit exceeds its FCF. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". Constellation Software has an accrual ratio of -0.29 for the year to March 2025. That implies it has very good cash conversion, and that its earnings in the last year actually significantly understate its free cash flow. To wit, it produced free cash flow of US$2.2b during the period, dwarfing its reported profit of US$741.0m. Constellation Software shareholders are no doubt pleased that free cash flow improved over the last twelve months. 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. Happily for shareholders, Constellation Software produced plenty of free cash flow to back up its statutory profit numbers. Because of this, we think Constellation Software's underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem! And on top of that, its earnings per share have grown at an extremely impressive rate over the last three years. 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 want to do dive deeper into Constellation Software, you'd also look into what risks it is currently facing. At Simply Wall St, we found 2 warning signs for Constellation Software and we think they deserve your attention. Today we've zoomed in on a single data point to better understand the nature of Constellation Software's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. 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. 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. 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
11-05-2025
- Business
- Yahoo
Fluor's (NYSE:FLR) Earnings Are Of Questionable Quality
Despite posting some strong earnings, the market for Fluor Corporation's (NYSE:FLR) stock hasn't moved much. We did some digging, and we found some concerning factors in the details. 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. 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'. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". For the year to March 2025, Fluor had an accrual ratio of 0.89. Ergo, its free cash flow is significantly weaker than its profit. As a general rule, that bodes poorly for future profitability. Indeed, in the last twelve months it reported free cash flow of US$512m, which is significantly less than its profit of US$1.85b. We note, however, that Fluor grew its free cash flow over the last year. 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. As we discussed above, we think Fluor's earnings were not supported by free cash flow, which might concern some investors. For this reason, we think that Fluor's statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company. But the happy news is that, while acknowledging we have to look beyond the statutory numbers, those numbers are still improving, with EPS growing at a very high rate over the last year. 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. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For example - Fluor has 2 warning signs we think you should be aware of. This note has only looked at a single factor that sheds light on the nature of Fluor'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. 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.
Forbes
24-03-2025
- Business
- Forbes
The Real Career Power Play Is Developing Soft Skills
Strong soft skills empower professionals to lead with empathy, navigate change and build ... More high-performing, resilient teams. Often undervalued or overlooked in favor of technical expertise, soft skills are increasingly essential in every profession. From entry-level careers to the C-suite, mastering soft skills opens up leadership opportunities. Soft skills influence how you lead teams. According to a LinkedIn Global Talent Trends report, 89% of recruiters say that when a hire doesn't work out, it typically comes down to a lack of soft skills. Additionally, employers increasingly look for emotional intelligence and communication over technical credentials alone. As the CEO of Tilting Futures, Erin Lewellen is accustomed to change and the skills it takes to lead through it. Formerly known as Global Citizen Year, the organization rebranded and expanded its mission in 2022 to create immersive learning experiences that prepare young people to become globally engaged leaders. Under Lewellen's leadership, Tilting Futures has focused not only on what students learn but also on how they grow, particularly through the development of soft skills. 'Every single high-stakes business situation I can think of absolutely requires adept deployment of soft skills,' Lewellen states. She emphasizes three areas as critical for today's up-and-coming leaders: The ability to professionally disagree is a powerful tool, especially for those wanting to secure a leadership role. It's not about constantly compromising; it's about engaging in constructive conversations even when opinions differ. Leaders who master this skill are able to challenge assumptions, test ideas and arrive at better decisions without damaging relationships. Lewellen notes that disagreeing well is more than just managing conflict. It's about showing respect while challenging ideas. 'When a leader can disagree with her team in a way that shows fundamental respect for the team and for the goal at hand, all ships rise,' she explains. This skill, rooted in emotional intelligence and trust, is increasingly valued by employers who recognize that innovation depends on diverse perspectives and open dialogue. How to develop it: Erin Lewellen, CEO of Tilting Futures, is creating opportunities for younger generations to develop ... More a diverse leadership style. Adaptability is key to both personal resilience and organizational success. This trait involves the willingness to shift approaches and remain open to new ideas. Adaptable leaders pivot when circumstances demand it. They anticipate and prepare for change. This mindset allows organizations to stay competitive. This skill set is another trait Lewellen sees as non-negotiable. 'We don't live in a linear, slow-paced world,' she says. During the COVID-19 pandemic, Tilting Futures had to pivot dramatically. Rather than closing its doors, the team launched new programming that met the moment—growing its reach and impact. 'Had we become too attached to our original, single story, we would have missed opportunity in ways we hadn't yet imagined.' How to develop it: Strong decision-making requires critical thinking. Leaders who make sound decisions can solve complex problems, balance risks and move forward with clarity. Importantly, they also know when to involve others and when to lead decisively. Decision-making, often overlooked as a soft skill, is the thread that ties it all together. Lewellen believes well-informed decisions come from unpacking problems strategically and understanding stakeholders. 'This skill encompasses so many others like empathy, creativity and collaboration,' she reflects. How to develop it: Lewellen practices these skills herself and coaches her team to do the same. She fosters a culture where leaders are encouraged to ask difficult questions, share context freely and let ideas develop over time. She urges, 'Put the idea on the table and discuss—and disagree, please disagree—so we make the best possible decision together.'
