Latest news with #Machinery
Business Wire
4 days ago
- Business
- Business Wire
AM Best Revises Outlooks to Negative for Machinery Insurance, Inc., An Assessable Mutual Insurer
BUSINESS WIRE)-- AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of 'bbb' (Good) of Machinery Insurance, Inc., An Assessable Mutual Insurer (Machinery) (Jacksonville, FL). The Credit Ratings (ratings) reflect Machinery's balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, very limited business profile and appropriate enterprise risk management (ERM). The negative outlooks reflect the deterioration in Machinery's net underwriting income and pre-tax operating income over the most recent five-year period, driven by a significant decline in premiums over most of that period. The decline in premiums was attributable to the intentional graduation of policies to larger surety writers by its agency, which was accelerated by inflationary trends, as well as increased competition by larger surety writers in the company's own small account market niche. Consequently, Machinery's operating performance metrics have fallen out of line in recent years with the median of 'strong' assessed rating units within its fidelity and surety composite. A continuation of this trend could result in a reduction of the company's 'strong' operating performance assessment. However, Machinery has continued to grow surplus organically in each of the last five years through net investment income, net underwriting income and capital gains on its equity portfolio. Despite the deterioration in operating performance, Machinery maintains a strong overall balance sheet, support by risk-adjusted capitalization at the strongest level. Machinery's business profile is assessed as 'very limited' due to its geographic and product concentration, as well as its intention to remain a tax-exempt organization under federal law, which limits its revenue to less than $600,000 annually. Machinery's ERM is considered appropriate for its risk profile, commensurate with the complexity and scale of the company. Machinery's small size allows for management to remain actively involved in all risk assessments and continuing to develop its risk appetite through strict underwriting practices. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Yahoo
25-05-2025
- Business
- Yahoo
The Return Trends At KSB SE KGaA (ETR:KSB) Look Promising
To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. Speaking of which, we noticed some great changes in KSB SE KGaA's (ETR:KSB) returns on capital, so let's have a look. We've discovered 1 warning sign about KSB SE KGaA. View them 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. To calculate this metric for KSB SE KGaA, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.13 = €243m ÷ (€2.9b - €983m) (Based on the trailing twelve months to December 2024). Thus, KSB SE KGaA has an ROCE of 13%. In absolute terms, that's a satisfactory return, but compared to the Machinery industry average of 8.7% it's much better. Check out our latest analysis for KSB SE KGaA In the above chart we have measured KSB SE KGaA's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering KSB SE KGaA for free. KSB SE KGaA has not disappointed with their ROCE growth. More specifically, while the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 115% in that same time. So our take on this is that the business has increased efficiencies to generate these higher returns, all the while not needing to make any additional investments. It's worth looking deeper into this though because while it's great that the business is more efficient, it might also mean that going forward the areas to invest internally for the organic growth are lacking. In summary, we're delighted to see that KSB SE KGaA has been able to increase efficiencies and earn higher rates of return on the same amount of capital. And a remarkable 309% total return over the last five years tells us that investors are expecting more good things to come in the future. In light of that, we think it's worth looking further into this stock because if KSB SE KGaA can keep these trends up, it could have a bright future ahead. One more thing to note, we've identified 1 warning sign with KSB SE KGaA and understanding it should be part of your investment process. While KSB SE KGaA may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. 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
19-05-2025
- Business
- Yahoo
Returns On Capital At China Yuchai International (NYSE:CYD) Paint A Concerning Picture
What underlying fundamental trends can indicate that a company might be in decline? More often than not, we'll see a declining return on capital employed (ROCE) and a declining amount of capital employed. This reveals that the company isn't compounding shareholder wealth because returns are falling and its net asset base is shrinking. So after we looked into China Yuchai International (NYSE:CYD), the trends above didn't look too great. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. 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 China Yuchai International is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.037 = CN¥508m ÷ (CN¥27b - CN¥13b) (Based on the trailing twelve months to December 2024). Therefore, China Yuchai International has an ROCE of 3.7%. Ultimately, that's a low return and it under-performs the Machinery industry average of 11%. Check out our latest analysis for China Yuchai International In the above chart we have measured China Yuchai International's prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for China Yuchai International . In terms of China Yuchai International's historical ROCE movements, the trend doesn't inspire confidence. To be more specific, the ROCE was 7.5% five years ago, but since then it has dropped noticeably. And on the capital employed front, the business is utilizing roughly the same amount of capital as it was back then. Since returns are falling and the business has the same amount of assets employed, this can suggest it's a mature business that hasn't had much growth in the last five years. So because these trends aren't typically conducive to creating a multi-bagger, we wouldn't hold our breath on China Yuchai International becoming one if things continue as they have. On a separate but related note, it's important to know that China Yuchai International has a current liabilities to total assets ratio of 49%, which we'd consider pretty high. This can bring about some risks because the company is basically operating with a rather large reliance on its suppliers or other sorts of short-term creditors. While it's not necessarily a bad thing, it can be beneficial if this ratio is lower. In the end, the trend of lower returns on the same amount of capital isn't typically an indication that we're looking at a growth stock. But investors must be expecting an improvement of sorts because over the last five yearsthe stock has delivered a respectable 76% return. In any case, the current underlying trends don't bode well for long term performance so unless they reverse, we'd start looking elsewhere. China Yuchai International does have some risks though, and we've spotted 2 warning signs for China Yuchai International that you might be interested in. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive 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. 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
19-05-2025
- Business
- Yahoo
Aumann First Quarter 2025 Earnings: EPS: €0.27 (vs €0.27 in 1Q 2024)
Revenue: €61.7m (down 5.4% from 1Q 2024). Net income: €3.90m (down 1.0% from 1Q 2024). Profit margin: 6.3% (up from 6.0% in 1Q 2024). The increase in margin was driven by lower expenses. EPS: €0.27. 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. All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to stay flat during the next 3 years compared to a 5.5% growth forecast for the Machinery industry in Germany. Performance of the German Machinery industry. The company's shares are down 1.6% from a week ago. What about risks? Every company has them, and we've spotted 2 warning signs for Aumann (of which 1 shouldn't be ignored!) 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. 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
19-05-2025
- Business
- Yahoo
Should You Be Worried About Stadler Rail AG's (VTX:SRAIL) 7.1% Return On Equity?
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine Stadler Rail AG (VTX:SRAIL), by way of a worked example. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. Our free stock report includes 1 warning sign investors should be aware of before investing in Stadler Rail. Read for free now. 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 Stadler Rail is: 7.1% = CHF55m ÷ CHF774m (Based on the trailing twelve months to December 2024). The 'return' is the amount earned after tax over the last twelve months. That means that for every CHF1 worth of shareholders' equity, the company generated CHF0.07 in profit. Check out our latest analysis for Stadler Rail One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As is clear from the image below, Stadler Rail has a lower ROE than the average (12%) in the Machinery industry. Unfortunately, that's sub-optimal. Although, we think that a lower ROE could still mean that a company has the opportunity to better its returns with the use of leverage, provided its existing debt levels are low. A company with high debt levels and low ROE is a combination we like to avoid given the risk involved. Companies usually need to invest money to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used. Stadler Rail clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.12. With a fairly low ROE, and significant use of debt, it's hard to get excited about this business at the moment. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it. Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In our books, the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREE visualization of analyst forecasts for the company. But note: Stadler Rail may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt. 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.
