Latest news with #MayuGlobalGroupBerhad
Yahoo
3 days ago
- Business
- Yahoo
Mayu Global Group Berhad (KLSE:MAYU) Posted Weak Earnings But There Is More To Worry About
Shareholders didn't appear too concerned by Mayu Global Group Berhad's (KLSE:MAYU) weak earnings. We did some digging, and we believe that investors are missing some worrying factors underlying the profit figures. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. In order to understand the potential for per share returns, it is essential to consider how much a company is diluting shareholders. In fact, Mayu Global Group Berhad increased the number of shares on issue by 8.7% over the last twelve months by issuing new shares. That means its earnings are split among a greater number of shares. To celebrate net income while ignoring dilution is like rejoicing because you have a single slice of a larger pizza, but ignoring the fact that the pizza is now cut into many more slices. Check out Mayu Global Group Berhad's historical EPS growth by clicking on this link. Mayu Global Group Berhad has improved its profit over the last three years, with an annualized gain of 107% in that time. But on the other hand, earnings per share actually fell by 8.5% per year. Net profit actually dropped by 12% in the last year. But the EPS result was even worse, with the company recording a decline of 13%. Therefore, the dilution is having a noteworthy influence on shareholder returns. In the long term, if Mayu Global Group Berhad'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 that reason, you could say that EPS is more important that net income in the long run, assuming the goal is to assess whether a company's share price might grow. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Mayu Global Group Berhad. Alongside that dilution, it's also important to note that Mayu Global Group Berhad's profit was boosted by unusual items worth RM7.4m in the last twelve months. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. When we crunched the numbers on thousands of publicly listed companies, we found that a boost from unusual items in a given year is often not repeated the next year. Which is hardly surprising, given the name. We can see that Mayu Global Group Berhad's positive unusual items were quite significant relative to its profit in the year to March 2025. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be. To sum it all up, Mayu Global Group Berhad got a nice boost to profit from unusual items; without that, its statutory results would have looked worse. And furthermore, it went and issued plenty of new shares, ensuring that each shareholder (who did not tip more money in) now owns a smaller proportion of the company. Considering all this we'd argue Mayu Global Group Berhad's profits probably give an overly generous impression of its sustainable level of profitability. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Case in point: We've spotted 3 warning signs for Mayu Global Group Berhad you should be aware of. Our examination of Mayu Global Group Berhad has focussed on certain factors that can make its earnings look better than they are. And, on that basis, we are somewhat skeptical. 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. 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
3 days ago
- Business
- Yahoo
Mayu Global Group Berhad (KLSE:MAYU) Posted Weak Earnings But There Is More To Worry About
Shareholders didn't appear too concerned by Mayu Global Group Berhad's (KLSE:MAYU) weak earnings. We did some digging, and we believe that investors are missing some worrying factors underlying the profit figures. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. In order to understand the potential for per share returns, it is essential to consider how much a company is diluting shareholders. In fact, Mayu Global Group Berhad increased the number of shares on issue by 8.7% over the last twelve months by issuing new shares. That means its earnings are split among a greater number of shares. To celebrate net income while ignoring dilution is like rejoicing because you have a single slice of a larger pizza, but ignoring the fact that the pizza is now cut into many more slices. Check out Mayu Global Group Berhad's historical EPS growth by clicking on this link. Mayu Global Group Berhad has improved its profit over the last three years, with an annualized gain of 107% in that time. But on the other hand, earnings per share actually fell by 8.5% per year. Net profit actually dropped by 12% in the last year. But the EPS result was even worse, with the company recording a decline of 13%. Therefore, the dilution is having a noteworthy influence on shareholder returns. In the long term, if Mayu Global Group Berhad'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 that reason, you could say that EPS is more important that net income in the long run, assuming the goal is to assess whether a company's share price might grow. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Mayu Global Group Berhad. Alongside that dilution, it's also important to note that Mayu Global Group Berhad's profit was boosted by unusual items worth RM7.4m in the last twelve months. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. When we crunched the numbers on thousands of publicly listed companies, we found that a boost from unusual items in a given year is often not repeated the next year. Which is hardly surprising, given the name. We can see that Mayu Global Group Berhad's positive unusual items were quite significant relative to its profit in the year to March 2025. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be. To sum it all up, Mayu Global Group Berhad got a nice boost to profit from unusual items; without that, its statutory results would have looked worse. And furthermore, it went and issued plenty of new shares, ensuring that each shareholder (who did not tip more money in) now owns a smaller proportion of the company. Considering all this we'd argue Mayu Global Group Berhad's profits probably give an overly generous impression of its sustainable level of profitability. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Case in point: We've spotted 3 warning signs for Mayu Global Group Berhad you should be aware of. Our examination of Mayu Global Group Berhad has focussed on certain factors that can make its earnings look better than they are. And, on that basis, we are somewhat skeptical. 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. 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
06-03-2025
- Business
- Yahoo
Why Mayu Global Group Berhad's (KLSE:MAYU) Healthy Earnings Aren't As Good As They Seem
Shareholders were pleased with the recent earnings report from Mayu Global Group Berhad (KLSE:MAYU). Investors should be cautious however, as there some causes of concern deeper in the numbers. View our latest analysis for Mayu Global Group Berhad As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. 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. 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 December 2024, Mayu Global Group Berhad had an accrual ratio of 0.21. We can therefore deduce that its free cash flow fell well short of covering its statutory profit. Over the last year it actually had negative free cash flow of RM53m, in contrast to the aforementioned profit of RM18.1m. It's worth noting that Mayu Global Group Berhad generated positive FCF of RM76m a year ago, so at least they've done it in the past. However, that's not the end of the story. We must also consider the impact of unusual items on statutory profit (and thus the accrual ratio), as well as note the ramifications of the company issuing new shares. One positive for Mayu Global Group Berhad shareholders is that it's accrual ratio was significantly better last year, providing reason to believe that it may return to stronger cash conversion in the future. As a result, some shareholders may be looking for stronger cash conversion in the current year. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Mayu Global Group Berhad. To understand the value of a company's earnings growth, it is imperative to consider any dilution of shareholders' interests. In fact, Mayu Global Group Berhad increased the number of shares on issue by 8.7% over the last twelve months by issuing new shares. That means its earnings are split among 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. Check out Mayu Global Group Berhad's historical EPS growth by clicking on this link. Mayu Global Group Berhad has improved its profit over the last three years, with an annualized gain of 323% in that time. In comparison, earnings per share only gained 74% over the same period. And at a glance the 172% gain in profit over the last year impresses. On the other hand, earnings per share are only up 137% in that time. Therefore, the dilution is having a noteworthy influence on shareholder returns. In the long term, earnings per share growth should beget share price growth. So it will certainly be a positive for shareholders if Mayu Global Group Berhad can grow EPS persistently. But on the other hand, we'd be far less excited to learn profit (but not EPS) was improving. For that reason, you could say that EPS is more important that net income in the long run, assuming the goal is to assess whether a company's share price might grow. The fact that the company had unusual items boosting profit by RM7.4m, in the last year, probably goes some way to explain why its accrual ratio was so weak. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. Mayu Global Group 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. Mayu Global Group Berhad didn't back up its earnings with free cashflow, but this isn't too surprising given profits were inflated by unusual items. The dilution means the results are weaker when viewed from a per-share perspective. For all the reasons mentioned above, we think that, at a glance, Mayu Global Group Berhad's statutory profits could be considered to be low quality, because they are likely to give investors an overly positive impression of the company. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For example, we've found that Mayu Global Group Berhad has 3 warning signs (2 don't sit too well with us!) that deserve your attention before going any further with your analysis. In this article we've looked at a number of factors that can impair the utility of profit numbers, and we've come away cautious. But there are plenty of other ways to inform your opinion of a company. 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
