Latest news with #MGBBerhad
Yahoo
04-04-2025
- Business
- Yahoo
MGB Berhad (KLSE:MGB) Is Experiencing Growth In Returns On Capital
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base 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. Speaking of which, we noticed some great changes in MGB Berhad's (KLSE:MGB) returns on capital, so let's have a look. 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. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on MGB Berhad is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.12 = RM80m ÷ (RM1.1b - RM449m) (Based on the trailing twelve months to December 2024). So, MGB Berhad has an ROCE of 12%. In absolute terms, that's a pretty normal return, and it's somewhat close to the Construction industry average of 10.0%. Check out our latest analysis for MGB Berhad Above you can see how the current ROCE for MGB Berhad compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering MGB Berhad for free. The trends we've noticed at MGB Berhad are quite reassuring. Over the last five years, returns on capital employed have risen substantially to 12%. 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 30%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed. All in all, it's terrific to see that MGB Berhad is reaping the rewards from prior investments and is growing its capital base. Considering the stock has delivered 16% to its stockholders over the last five years, it may be fair to think that investors aren't fully aware of the promising trends yet. So exploring more about this stock could uncover a good opportunity, if the valuation and other metrics stack up. MGB Berhad does have some risks though, and we've spotted 2 warning signs for MGB Berhad that you might be interested in. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high 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.
Yahoo
23-02-2025
- Business
- Yahoo
MGB Berhad Full Year 2024 Earnings: EPS Beats Expectations, Revenues Lag
Revenue: RM1.03b (up 6.2% from FY 2023). Net income: RM60.1m (up 25% from FY 2023). Profit margin: 5.8% (up from 5.0% in FY 2023). The increase in margin was driven by higher revenue. EPS: RM0.10 (up from RM0.081 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue missed analyst estimates by 18%. Earnings per share (EPS) exceeded analyst estimates by 5.1%. The primary driver behind last 12 months revenue was the Construction and Trading segment contributing a total revenue of RM957.2m (93% of total revenue). Notably, cost of sales worth RM859.8m amounted to 83% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to RM92.4m (82% of total expenses). Explore how MGB's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Construction industry in Malaysia. Performance of the Malaysian Construction industry. The company's shares are down 1.4% from a week ago. What about risks? Every company has them, and we've spotted 2 warning signs for MGB Berhad 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
23-02-2025
- Business
- Yahoo
MGB Berhad Full Year 2024 Earnings: EPS Beats Expectations, Revenues Lag
Revenue: RM1.03b (up 6.2% from FY 2023). Net income: RM60.1m (up 25% from FY 2023). Profit margin: 5.8% (up from 5.0% in FY 2023). The increase in margin was driven by higher revenue. EPS: RM0.10 (up from RM0.081 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue missed analyst estimates by 18%. Earnings per share (EPS) exceeded analyst estimates by 5.1%. The primary driver behind last 12 months revenue was the Construction and Trading segment contributing a total revenue of RM957.2m (93% of total revenue). Notably, cost of sales worth RM859.8m amounted to 83% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to RM92.4m (82% of total expenses). Explore how MGB's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Construction industry in Malaysia. Performance of the Malaysian Construction industry. The company's shares are down 1.4% from a week ago. What about risks? Every company has them, and we've spotted 2 warning signs for MGB Berhad 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.
Yahoo
17-02-2025
- Business
- Yahoo
MGB Berhad (KLSE:MGB) shareholders have endured a 19% loss from investing in the stock a year ago
Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Investors in MGB Berhad (KLSE:MGB) have tasted that bitter downside in the last year, as the share price dropped 21%. That's disappointing when you consider the market returned 7.2%. Longer term shareholders haven't suffered as badly, since the stock is down a comparatively less painful 4.8% in three years. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. Check out our latest analysis for MGB Berhad To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During the unfortunate twelve months during which the MGB Berhad share price fell, it actually saw its earnings per share (EPS) improve by 44%. It's quite possible that growth expectations may have been unreasonable in the past. The divergence between the EPS and the share price is quite notable, during the year. So it's easy to justify a look at some other metrics. MGB Berhad managed to grow revenue over the last year, which is usually a real positive. Since we can't easily explain the share price movement based on these metrics, it might be worth considering how market sentiment has changed towards the stock. The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail). It is of course excellent to see how MGB Berhad has grown profits over the years, but the future is more important for shareholders. This free interactive report on MGB Berhad's balance sheet strength is a great place to start, if you want to investigate the stock further. Investors in MGB Berhad had a tough year, with a total loss of 19% (including dividends), against a market gain of about 7.2%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 4%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for MGB Berhad you should know about. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges. 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
