Latest news with #OpenSys(M)Berhad
Yahoo
08-04-2025
- Business
- Yahoo
OpenSys (M) Berhad (KLSE:OPENSYS) Is Reinvesting At Lower Rates Of Return
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount 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. Having said that, from a first glance at OpenSys (M) Berhad (KLSE:OPENSYS) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for OpenSys (M) Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.15 = RM16m ÷ (RM127m - RM21m) (Based on the trailing twelve months to December 2024). Therefore, OpenSys (M) Berhad has an ROCE of 15%. On its own, that's a standard return, however it's much better than the 8.2% generated by the Tech industry. View our latest analysis for OpenSys (M) Berhad While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of OpenSys (M) Berhad . In terms of OpenSys (M) Berhad's historical ROCE movements, the trend isn't fantastic. Over the last five years, returns on capital have decreased to 15% from 20% five years ago. However it looks like OpenSys (M) Berhad might be reinvesting for long term growth because while capital employed has increased, the company's sales haven't changed much in the last 12 months. 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. To conclude, we've found that OpenSys (M) Berhad is reinvesting in the business, but returns have been falling. Although the market must be expecting these trends to improve because the stock has gained 54% over the last five years. But if the trajectory of these underlying trends continue, we think the likelihood of it being a multi-bagger from here isn't high. OpenSys (M) Berhad does have some risks though, and we've spotted 2 warning signs for OpenSys (M) Berhad that you might be interested in. While OpenSys (M) Berhad 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
25-02-2025
- Business
- Yahoo
OpenSys (M) Berhad Full Year 2024 Earnings: EPS: RM0.027 (vs RM0.028 in FY 2023)
Revenue: RM92.7m (up 4.9% from FY 2023). Net income: RM11.9m (down 3.4% from FY 2023). Profit margin: 13% (down from 14% in FY 2023). The decrease in margin was driven by higher expenses. EPS: RM0.027 (down from RM0.028 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period OpenSys (M) Berhad shares are down 2.9% from a week ago. You should always think about risks. Case in point, we've spotted 2 warning signs for OpenSys (M) Berhad you should be aware of. 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.
