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Pantech Group Holdings Berhad (KLSE:PANTECH) Is Looking To Continue Growing Its Returns On Capital
Pantech Group Holdings Berhad (KLSE:PANTECH) Is Looking To Continue Growing Its Returns On Capital

Yahoo

time03-06-2025

  • Business
  • Yahoo

Pantech Group Holdings Berhad (KLSE:PANTECH) Is Looking To Continue Growing Its Returns On Capital

There are a few key trends to look for if we want to identify the next multi-bagger. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. With that in mind, we've noticed some promising trends at Pantech Group Holdings Berhad (KLSE:PANTECH) so let's look a bit deeper. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. 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 Pantech Group Holdings Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.10 = RM125m ÷ (RM1.5b - RM259m) (Based on the trailing twelve months to February 2025). So, Pantech Group Holdings Berhad has an ROCE of 10%. In absolute terms, that's a satisfactory return, but compared to the Metals and Mining industry average of 7.3% it's much better. See our latest analysis for Pantech Group Holdings Berhad In the above chart we have measured Pantech Group Holdings Berhad's prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Pantech Group Holdings Berhad . Investors would be pleased with what's happening at Pantech Group Holdings Berhad. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 10%. The amount of capital employed has increased too, by 69%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed. To sum it up, Pantech Group Holdings Berhad has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. Since the stock has returned a staggering 151% to shareholders over the last five years, it looks like investors are recognizing these changes. Therefore, we think it would be worth your time to check if these trends are going to continue. Pantech Group Holdings Berhad does have some risks though, and we've spotted 1 warning sign for Pantech Group Holdings Berhad that you might be interested in. 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. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤

Here's Why We Think Magni-Tech Industries Berhad (KLSE:MAGNI) Is Well Worth Watching
Here's Why We Think Magni-Tech Industries Berhad (KLSE:MAGNI) Is Well Worth Watching

Yahoo

time31-03-2025

  • Business
  • Yahoo

Here's Why We Think Magni-Tech Industries Berhad (KLSE:MAGNI) Is Well Worth Watching

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. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away. In contrast to all that, many investors prefer to focus on companies like Magni-Tech Industries Berhad (KLSE:MAGNI), which has not only revenues, but also profits. 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. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That makes EPS growth an attractive quality for any company. Magni-Tech Industries Berhad managed to grow EPS by 15% per year, over three years. That growth rate is fairly good, assuming the company can keep it up. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. EBIT margins for Magni-Tech Industries Berhad remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 20% to RM1.5b. 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. See our latest analysis for Magni-Tech Industries Berhad Since Magni-Tech Industries Berhad is no giant, with a market capitalisation of RM988m, you should definitely check its cash and debt before getting too excited about its prospects. Seeing insiders owning a large portion of the shares on issue is often a good sign. Their incentives will be aligned with the investors and there's less of a probability in a sudden sell-off that would impact the share price. So we're pleased to report that Magni-Tech Industries Berhad insiders own a meaningful share of the business. Actually, with 49% of the company to their names, insiders are profoundly invested in the business. This should be a welcoming sign for investors because it suggests that the people making the decisions are also impacted by their choices. In terms of absolute value, insiders have RM480m invested in the business, at the current share price. That's nothing to sneeze at! As previously touched on, Magni-Tech Industries Berhad is a growing business, which is encouraging. To add an extra spark to the fire, significant insider ownership in the company is another highlight. The combination definitely favoured by investors so consider keeping the company on a watchlist. It is worth noting though that we have found 1 warning sign for Magni-Tech Industries Berhad that you need to take into consideration. 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. Sign in to access your portfolio

The Return Trends At SD Guthrie Berhad (KLSE:SDG) Look Promising
The Return Trends At SD Guthrie Berhad (KLSE:SDG) Look Promising

Yahoo

time26-02-2025

  • Business
  • Yahoo

The Return Trends At SD Guthrie Berhad (KLSE:SDG) Look Promising

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So on that note, SD Guthrie Berhad (KLSE:SDG) looks quite promising in regards to its trends of return on capital. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. The formula for this calculation on SD Guthrie Berhad is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.056 = RM1.5b ÷ (RM31b - RM4.9b) (Based on the trailing twelve months to September 2024). So, SD Guthrie Berhad has an ROCE of 5.6%. Ultimately, that's a low return and it under-performs the Food industry average of 8.1%. Check out our latest analysis for SD Guthrie Berhad Above you can see how the current ROCE for SD Guthrie Berhad compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for SD Guthrie Berhad . SD Guthrie Berhad has not disappointed with their ROCE growth. More specifically, while the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 174% in that same time. So it's likely that the business is now reaping the full benefits of its past investments, since the capital employed hasn't changed considerably. It's worth looking deeper into this though because while it's great that the business is more efficient, it might also mean that going forward the areas to invest internally for the organic growth are lacking. In summary, we're delighted to see that SD Guthrie Berhad has been able to increase efficiencies and earn higher rates of return on the same amount of capital. Considering the stock has delivered 17% to its stockholders over the last five years, it may be fair to think that investors aren't fully aware of the promising trends yet. So with that in mind, we think the stock deserves further research. SD Guthrie Berhad does have some risks though, and we've spotted 2 warning signs for SD Guthrie Berhad that you might be interested in. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high 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. Sign in to access your portfolio

The Returns On Capital At Gadang Holdings Berhad (KLSE:GADANG) Don't Inspire Confidence
The Returns On Capital At Gadang Holdings Berhad (KLSE:GADANG) Don't Inspire Confidence

Yahoo

time25-02-2025

  • Business
  • Yahoo

The Returns On Capital At Gadang Holdings Berhad (KLSE:GADANG) Don't Inspire Confidence

When researching a stock for investment, what can tell us that the company is in decline? Typically, we'll see the trend of both return on capital employed (ROCE) declining and this usually coincides with a decreasing amount of capital employed. This reveals that the company isn't compounding shareholder wealth because returns are falling and its net asset base is shrinking. So after we looked into Gadang Holdings Berhad (KLSE:GADANG), the trends above didn't look too great. 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 Gadang Holdings Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.015 = RM14m ÷ (RM1.5b - RM498m) (Based on the trailing twelve months to November 2024). So, Gadang Holdings Berhad has an ROCE of 1.5%. In absolute terms, that's a low return and it also under-performs the Construction industry average of 11%. Check out our latest analysis for Gadang Holdings Berhad In the above chart we have measured Gadang Holdings Berhad's prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Gadang Holdings Berhad . There is reason to be cautious about Gadang Holdings Berhad, given the returns are trending downwards. To be more specific, the ROCE was 5.0% five years ago, but since then it has dropped noticeably. And on the capital employed front, the business is utilizing roughly the same amount of capital as it was back then. This combination can be indicative of a mature business that still has areas to deploy capital, but the returns received aren't as high due potentially to new competition or smaller margins. If these trends continue, we wouldn't expect Gadang Holdings Berhad to turn into a multi-bagger. In summary, it's unfortunate that Gadang Holdings Berhad is generating lower returns from the same amount of capital. Investors haven't taken kindly to these developments, since the stock has declined 44% from where it was five years ago. With underlying trends that aren't great in these areas, we'd consider looking elsewhere. If you'd like to know about the risks facing Gadang Holdings Berhad, we've discovered 2 warning signs that you should be aware of. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high 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. Sign in to access your portfolio

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