Latest news with #OCBBerhad
Yahoo
02-05-2025
- Business
- Yahoo
OCB Berhad's (KLSE:OCB) Soft Earnings Are Actually Better Than They Appear
The market for OCB Berhad's (KLSE:OCB) shares didn't move much after it posted weak earnings recently. We did some digging, and we believe the earnings are stronger than they seem. Our free stock report includes 5 warning signs investors should be aware of before investing in OCB Berhad. Read for free now. To properly understand OCB Berhad's profit results, we need to consider the RM12m expense attributed to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that's hardly a surprise given these line items are considered unusual. OCB Berhad took a rather significant hit from unusual items in the year to December 2024. All else being equal, this would likely have the effect of making the statutory profit look worse than its underlying earnings power. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of OCB Berhad. As we discussed above, we think the significant unusual expense will make OCB Berhad's statutory profit lower than it would otherwise have been. Because of this, we think OCB Berhad's underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem! On the other hand, its EPS actually shrunk in the last twelve months. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. If you want to do dive deeper into OCB Berhad, you'd also look into what risks it is currently facing. Our analysis shows 5 warning signs for OCB Berhad (1 doesn't sit too well with us!) and we strongly recommend you look at them before investing. This note has only looked at a single factor that sheds light on the nature of OCB Berhad's profit. 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
Yahoo
27-04-2025
- Business
- Yahoo
OCB Berhad (KLSE:OCB) Is Increasing Its Dividend To MYR0.02
OCB Berhad's (KLSE:OCB) periodic dividend will be increasing on the 31st of July to MYR0.02, with investors receiving 33% more than last year's MYR0.015. Based on this payment, the dividend yield for the company will be 2.8%, which is fairly typical for the industry. Our free stock report includes 4 warning signs investors should be aware of before investing in OCB Berhad. Read for free now. While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible. However, prior to this announcement, OCB Berhad's dividend was comfortably covered by both cash flow and earnings. This means that most of what the business earns is being used to help it grow. Over the next year, EPS could expand by 61.3% if recent trends continue. If the dividend continues on this path, the payout ratio could be 18% by next year, which we think can be pretty sustainable going forward. Check out our latest analysis for OCB Berhad While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. The last annual payment of MYR0.02 was flat on the annual payment from10 years ago. We're glad to see the dividend has risen, but with a limited rate of growth and fluctuations in the payments the total shareholder return may be limited. Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. OCB Berhad has seen EPS rising for the last five years, at 61% per annum. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock. In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Case in point: We've spotted 4 warning signs for OCB Berhad (of which 1 is a bit concerning!) you should know about. Is OCB Berhad not quite the opportunity you were looking for? Why not check out 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.
