Latest news with #MuhibbahEngineering(M)Bhd
Yahoo
2 days ago
- Business
- Yahoo
Here's Why We Think Muhibbah Engineering (M) Bhd (KLSE:MUHIBAH) Might Deserve Your Attention Today
Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Muhibbah Engineering (M) Bhd (KLSE:MUHIBAH). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing. 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 business, profits are a key measure of success; and share prices tend to reflect earnings per share (EPS) performance. So for many budding investors, improving EPS is considered a good sign. It's an outstanding feat for Muhibbah Engineering (M) Bhd to have grown EPS from RM0.0057 to RM0.11 in just one year. When you see earnings grow that quickly, it often means good things ahead for the company. Could this be a sign that the business has reached an inflection point? Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. EBIT margins for Muhibbah Engineering (M) Bhd remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 40% to RM1.9b. That's encouraging news for the company! You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers. View our latest analysis for Muhibbah Engineering (M) Bhd Muhibbah Engineering (M) Bhd isn't a huge company, given its market capitalisation of RM434m. That makes it extra important to check on its balance sheet strength. Many consider high insider ownership to be a strong sign of alignment between the leaders of a company and the ordinary shareholders. So those who are interested in Muhibbah Engineering (M) Bhd will be delighted to know that insiders have shown their belief, holding a large proportion of the company's shares. In fact, they own 35% of the shares, making insiders a very influential shareholder group. Those who are comforted by solid insider ownership like this should be happy, as it implies that those running the business are genuinely motivated to create shareholder value. With that sort of holding, insiders have about RM153m riding on the stock, at current prices. That's nothing to sneeze at! Muhibbah Engineering (M) Bhd's earnings per share growth have been climbing higher at an appreciable rate. That EPS growth certainly is attention grabbing, and the large insider ownership only serves to further stoke our interest. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. Based on the sum of its parts, we definitely think its worth watching Muhibbah Engineering (M) Bhd very closely. You still need to take note of risks, for example - Muhibbah Engineering (M) Bhd has 2 warning signs (and 1 which is potentially serious) we think you should know about. While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in MY with promising growth potential and insider confidence. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. 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
New Straits Times
3 days ago
- Business
- New Straits Times
Muhibbah Q1 earnings rise 14pct to RM16mil on stronger concession gains
KUALA LUMPUR: Muhibbah Engineering (M) Bhd's net profit for the first quarter ended March 31, 2025, rose 14 per cent to RM16.17 million from RM14.19 million a year earlier, lifted by higher contributions from its concession business. In a filing with Bursa Malaysia, the group said this was driven by its airport and road concession operations, which contributed RM22.1 million in pre-tax profit, up 116.7 per cent from RM10.2 million previously. Quarterly revenue, however, declined 2.2 per cent to RM319.96 million from RM327.01 million a year ago. Muhibbah said the dip was due to slightly lower construction activity during the quarter. On a proforma basis, which includes its share of revenue from associates, total revenue rose 4.2 per cent to RM431.3 million from RM413.9 million. Earnings per share rose to 2.22 sen from 1.95 sen a year ago. As at end-March, the group had RM516.7 million in cash and bank balances, down from RM571.2 million at the end of December 2024. Total borrowings stood at RM468.2 million, comprising RM306.6 million in short-term and RM161.6 million in long-term loans. The group's outstanding order book stood at RM1.14 billion as at May 22, spanning construction and cranes projects. Despite global headwinds, including inflation, supply chain disruptions and geopolitical uncertainties, Muhibbah said it will continue to monitor developments and pursue new contracts.
Yahoo
21-04-2025
- Business
- Yahoo
Muhibbah Engineering (M) Bhd (KLSE:MUHIBAH) Is Looking To Continue Growing Its Returns On Capital
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. Speaking of which, we noticed some great changes in Muhibbah Engineering (M) Bhd's (KLSE:MUHIBAH) returns on capital, so let's have a look. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for Muhibbah Engineering (M) Bhd: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.027 = RM62m ÷ (RM3.6b - RM1.3b) (Based on the trailing twelve months to December 2024). So, Muhibbah Engineering (M) Bhd has an ROCE of 2.7%. In absolute terms, that's a low return and it also under-performs the Construction industry average of 10.0%. Check out our latest analysis for Muhibbah Engineering (M) Bhd Above you can see how the current ROCE for Muhibbah Engineering (M) Bhd compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Muhibbah Engineering (M) Bhd . Even though ROCE is still low in absolute terms, it's good to see it's heading in the right direction. Over the last five years, returns on capital employed have risen substantially to 2.7%. Basically the business is earning more per dollar of capital invested and in addition to that, 27% more capital is being employed now too. So we're very much inspired by what we're seeing at Muhibbah Engineering (M) Bhd thanks to its ability to profitably reinvest capital. On a related note, the company's ratio of current liabilities to total assets has decreased to 37%, which basically reduces it's funding from the likes of short-term creditors or suppliers. This tells us that Muhibbah Engineering (M) Bhd has grown its returns without a reliance on increasing their current liabilities, which we're very happy with. A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what Muhibbah Engineering (M) Bhd has. Given the stock has declined 40% in the last five years, this could be a good investment if the valuation and other metrics are also appealing. With that in mind, we believe the promising trends warrant this stock for further investigation. One more thing, we've spotted 1 warning sign facing Muhibbah Engineering (M) Bhd that you might find interesting. While Muhibbah Engineering (M) Bhd isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. 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
27-02-2025
- Business
- Yahoo
Muhibbah Engineering (M) Bhd (KLSE:MUHIBAH) shareholders have endured a 49% loss from investing in the stock five years ago
In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But the main game is to find enough winners to more than offset the losers So we wouldn't blame long term Muhibbah Engineering (M) Bhd. (KLSE:MUHIBAH) shareholders for doubting their decision to hold, with the stock down 51% over a half decade. Shareholders have had an even rougher run lately, with the share price down 18% in the last 90 days. Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns. Check out our latest analysis for Muhibbah Engineering (M) Bhd 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. Muhibbah Engineering (M) Bhd became profitable within the last five years. That would generally be considered a positive, so we are surprised to see the share price is down. Other metrics may better explain the share price move. The revenue decline of 0.6% isn't too bad. But it's quite possible the market had expected better; a closer look at the revenue trends might explain the pessimism. The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image). It is of course excellent to see how Muhibbah Engineering (M) Bhd has grown profits over the years, but the future is more important for shareholders. This free interactive report on Muhibbah Engineering (M) Bhd's balance sheet strength is a great place to start, if you want to investigate the stock further. Investors should note that there's a difference between Muhibbah Engineering (M) Bhd's total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Dividends have been really beneficial for Muhibbah Engineering (M) Bhd shareholders, and that cash payout explains why its total shareholder loss of 49%, over the last 5 years, isn't as bad as the share price return. While the broader market gained around 4.8% in the last year, Muhibbah Engineering (M) Bhd shareholders lost 13%. 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. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 8% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. Before forming an opinion on Muhibbah Engineering (M) Bhd you might want to consider these 3 valuation metrics. For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket. 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
