Latest news with #NZSE
Yahoo
a day ago
- Business
- Yahoo
Is It Smart To Buy Marlin Global Limited (NZSE:MLN) Before It Goes Ex-Dividend?
Marlin Global Limited (NZSE:MLN) is about to trade ex-dividend in the next four days. The ex-dividend date is two business days before a company's record date in most cases, which is the date on which the company determines which shareholders are entitled to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. This means that investors who purchase Marlin Global's shares on or after the 4th of June will not receive the dividend, which will be paid on the 27th of June. The company's next dividend payment will be NZ$0.0190999 per share, on the back of last year when the company paid a total of NZ$0.078 to shareholders. Last year's total dividend payments show that Marlin Global has a trailing yield of 8.4% on the current share price of NZ$0.93. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Marlin Global paid out 50% of its earnings to investors last year, a normal payout level for most businesses. Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend. See our latest analysis for Marlin Global Click here to see how much of its profit Marlin Global paid out over the last 12 months. Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Fortunately for readers, Marlin Global's earnings per share have been growing at 19% a year for the past five years. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Marlin Global has delivered an average of 0.6% per year annual increase in its dividend, based on the past 10 years of dividend payments. It's good to see both earnings and the dividend have improved - although the former has been rising much quicker than the latter, possibly due to the company reinvesting more of its profits in growth. Is Marlin Global an attractive dividend stock, or better left on the shelf? Earnings per share are growing nicely, and Marlin Global is paying out a percentage of its earnings that is around the average for dividend-paying stocks. In summary, Marlin Global appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it. With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. Our analysis shows 2 warning signs for Marlin Global that we strongly recommend you have a look at before investing in the company. If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks. 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
3 days ago
- Business
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Radius Residential Care (NZSE:RAD) Posted Healthy Earnings But There Are Some Other Factors To Be Aware Of
Despite posting some strong earnings, the market for Radius Residential Care Limited's (NZSE:RAD) stock hasn't moved much. We did some digging, and we found some concerning factors in the 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. Importantly, our data indicates that Radius Residential Care's profit received a boost of NZ$3.1m in unusual items, over the last year. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. 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. If Radius Residential Care doesn't see that contribution repeat, then all else being equal we'd expect its profit to drop over the current 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. We'd posit that Radius Residential Care's statutory earnings aren't a clean read on ongoing productivity, due to the large unusual item. Therefore, it seems possible to us that Radius Residential Care's true underlying earnings power is actually less than its statutory profit. On the bright side, the company showed enough improvement to book a profit this year, after losing money last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. 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. For instance, we've identified 5 warning signs for Radius Residential Care (1 is significant) you should be familiar with. This note has only looked at a single factor that sheds light on the nature of Radius Residential Care'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 while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
4 days ago
- Business
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Rakon Ltd (NZSE:RAK) Full Year 2025 Earnings Call Highlights: Navigating Challenges with ...
Release Date: May 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Rakon Ltd (NZSE:RAK) achieved a significant reduction in operating expenses, down approximately 10% year on year, which helped preserve earnings despite challenging market conditions. The aerospace and defense segment delivered record revenue with double-digit year-on-year growth, continuing a positive trend for the last three years. There was a strong pick-up in telecommunications order volumes in the second half of the year, indicating stabilizing market conditions and selective global 5G investments. Rakon Ltd (NZSE:RAK) successfully reduced inventory by $8.5 million, releasing additional cash and improving working capital management. The company made significant strides in expanding into high-growth areas such as AI and cloud computing infrastructure, positioning itself for future revenue growth. FY25 revenue was down 19% year on year, reflecting tough conditions in core telecommunications and positioning markets. Rakon Ltd (NZSE:RAK) posted a net loss after tax of $5.8 million, including $3.6 million in one-off restructuring and transaction costs. The telecommunications segment faced a 33% year-on-year revenue decline due to continued demand weakness and inventory overhang at customers. Positioning revenue decreased by 21% from the prior year, with market weakness leading to lower order volumes. Gross margin percentage decreased to 43.1% due to loss of efficiencies from low production levels and fixed costs. Warning! GuruFocus has detected 4 Warning Signs with NZSE:RAK. Q: Can you talk to the level of working capital and if this new level is sustainable? A: Yes, we believe it is sustainable. As the business grows, receivables and payables will increase. Our key focus is on controlling inventory, and we have initiatives to review our inventory policies at various sites to maintain this level of working capital. (Respondent: CFO, Mark Dunwoody) Q: With net cash at the end of the year around $3 million, where do you expect this to be over FY26? A: We are working hard to return to a positive operating cash flow and are forecasting an improved cash position by the end of FY26. (Respondent: CFO, Mark Dunwoody) Q: On R&D, a large proportion of second-half spend was capitalized. Can you explain more on this and what will happen to this mix in FY26? A: Our technology teams are constantly working on new products, and we expect similar capitalization progress as we meet the IS 38 criteria during FY26. This is part of our strategy to turn R&D spending into assets for the company. (Respondent: CFO, Mark Dunwoody and CEO, Senan Oto) Q: Can you comment on the level of R&D likely to be expensed in FY26? A: We anticipate R&D expenses to be around $5 to $6 million next year, depending on the progress of our pipeline products. Our intention is to continue investing in R&D to maintain our technology leadership. (Respondent: CFO, Mark Dunwoody and CEO, Senan Oto) Q: Regarding your capital allocation priorities over the next year or two, do you expect to prioritize debt reduction, dividends, share buybacks, or reinvest in growth? A: We will continue to reinvest in growth, which remains a key focus. However, the exact strategy for capital allocation, including debt reduction, dividends, or share buybacks, has not yet been finalized with the board. (Respondent: CEO, Senan Oto) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
4 days ago
- Business
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With 63% institutional ownership, SkyCity Entertainment Group Limited (NZSE:SKC) is a favorite amongst the big guns
Significantly high institutional ownership implies SkyCity Entertainment Group's stock price is sensitive to their trading actions A total of 7 investors have a majority stake in the company with 52% ownership Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business 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. If you want to know who really controls SkyCity Entertainment Group Limited (NZSE:SKC), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 63% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait. In the chart below, we zoom in on the different ownership groups of SkyCity Entertainment Group. Check out our latest analysis for SkyCity Entertainment Group Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. SkyCity Entertainment Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see SkyCity Entertainment Group's historic earnings and revenue below, but keep in mind there's always more to the story. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in SkyCity Entertainment Group. Orbis Investment Management Limited is currently the company's largest shareholder with 15% of shares outstanding. Australian Super Pty Ltd is the second largest shareholder owning 10% of common stock, and Accident Compensation Corporation, Asset Management Arm holds about 8.8% of the company stock. On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our information suggests that SkyCity Entertainment Group Limited insiders own under 1% of the company. It has a market capitalization of just NZ$721m, and the board has only NZ$7.0m worth of shares in their own names. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling. The general public-- including retail investors -- own 35% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. It's always worth thinking about the different groups who own shares in a company. But to understand SkyCity Entertainment Group better, we need to consider many other factors. For example, we've discovered 1 warning sign for SkyCity Entertainment Group that you should be aware of before investing here. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. 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 while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
5 days ago
- Business
- Yahoo
a2 Milk (NZSE:ATM) May Have Issues Allocating Its Capital
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? 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. Having said that, from a first glance at a2 Milk (NZSE:ATM) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look. 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. 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 a2 Milk is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.14 = NZ$202m ÷ (NZ$1.9b - NZ$474m) (Based on the trailing twelve months to December 2024). Therefore, a2 Milk has an ROCE of 14%. On its own, that's a standard return, however it's much better than the 9.6% generated by the Food industry. Check out our latest analysis for a2 Milk In the above chart we have measured a2 Milk's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for a2 Milk . When we looked at the ROCE trend at a2 Milk, we didn't gain much confidence. Around five years ago the returns on capital were 47%, but since then they've fallen to 14%. Meanwhile, the business is utilizing more capital but this hasn't moved the needle much in terms of sales in the past 12 months, so this could reflect longer term investments. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line. Bringing it all together, while we're somewhat encouraged by a2 Milk's reinvestment in its own business, we're aware that returns are shrinking. And investors appear hesitant that the trends will pick up because the stock has fallen 52% in the last five years. All in all, the inherent trends aren't typical of multi-baggers, so if that's what you're after, we think you might have more luck elsewhere. If you're still interested in a2 Milk it's worth checking out our to see if it's trading at an attractive price in other respects. 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.
