Latest news with #RM1.6b
Yahoo
5 days ago
- Business
- Yahoo
Bumi Armada Berhad (KLSE:ARMADA) Is Posting Promising Earnings But The Good News Doesn't Stop There
The stock was sluggish on the back of Bumi Armada Berhad's (KLSE:ARMADA) recent earnings report. Along with the solid headline numbers, we think that investors have some reasons for optimism. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. The ratio shows us how much a company's profit exceeds its FCF. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. Bumi Armada Berhad has an accrual ratio of -0.11 for the year to March 2025. Therefore, its statutory earnings were quite a lot less than its free cashflow. In fact, it had free cash flow of RM1.6b in the last year, which was a lot more than its statutory profit of RM576.2m. Bumi Armada Berhad's free cash flow improved over the last year, which is generally good to see. Having said that, there is more to the story. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part. Check out our latest analysis for Bumi Armada Berhad 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. Bumi Armada Berhad's profit was reduced by unusual items worth RM312m in the last twelve months, and this helped it produce high cash conversion, as reflected by its unusual items. This is what you'd expect to see where a company has a non-cash charge reducing paper profits. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And, after all, that's exactly what the accounting terminology implies. If Bumi Armada Berhad doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year. In conclusion, both Bumi Armada Berhad's accrual ratio and its unusual items suggest that its statutory earnings are probably reasonably conservative. Looking at all these factors, we'd say that Bumi Armada Berhad's underlying earnings power is at least as good as the statutory numbers would make it seem. If you want to do dive deeper into Bumi Armada Berhad, you'd also look into what risks it is currently facing. You'd be interested to know, that we found 1 warning sign for Bumi Armada Berhad and you'll want to know about this. Our examination of Bumi Armada Berhad has focussed on certain factors that can make its earnings look better than they are. And it has passed with flying colours. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. 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
04-03-2025
- Business
- Yahoo
The total return for Gamuda Berhad (KLSE:GAMUDA) investors has risen faster than earnings growth over the last three years
The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But if you buy shares in a really great company, you can more than double your money. To wit, the Gamuda Berhad (KLSE:GAMUDA) share price has flown 170% in the last three years. Most would be happy with that. The last week saw the share price soften some 6.2%. Although Gamuda Berhad has shed RM1.6b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns. Check out our latest analysis for Gamuda Berhad While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During three years of share price growth, Gamuda Berhad achieved compound earnings per share growth of 39% per year. Notably, the 39% average annual share price gain matches up nicely with the EPS growth rate. That suggests that the market sentiment around the company hasn't changed much over that time. Quite to the contrary, the share price has arguably reflected the EPS growth. You can see below how EPS has changed over time (discover the exact values by clicking on the image). It is of course excellent to see how Gamuda Berhad has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling Gamuda Berhad stock, you should check out this FREE detailed report on its balance sheet. It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Gamuda Berhad the TSR over the last 3 years was 225%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return. We're pleased to report that Gamuda Berhad shareholders have received a total shareholder return of 71% over one year. That's including the dividend. That gain is better than the annual TSR over five years, which is 27%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Gamuda Berhad , and understanding them should be part of your investment process. If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying. 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
Yahoo
01-03-2025
- Business
- Yahoo
Results: Hong Leong Bank Berhad Beat Earnings Expectations And Analysts Now Have New Forecasts
Hong Leong Bank Berhad (KLSE:HLBANK) just released its quarterly report and things are looking bullish. The company beat expectations with revenues of RM1.6b arriving 4.8% ahead of forecasts. Statutory earnings per share (EPS) were RM0.56, 6.4% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. Check out our latest analysis for Hong Leong Bank Berhad Following the latest results, Hong Leong Bank Berhad's 15 analysts are now forecasting revenues of RM6.34b in 2025. This would be a satisfactory 2.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 2.2% to RM2.15. In the lead-up to this report, the analysts had been modelling revenues of RM6.31b and earnings per share (EPS) of RM2.16 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates. It will come as no surprise then, to learn that the consensus price target is largely unchanged at RM25.41. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Hong Leong Bank Berhad, with the most bullish analyst valuing it at RM31.40 and the most bearish at RM23.20 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Hong Leong Bank Berhad's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.9% growth on an annualised basis. This is compared to a historical growth rate of 6.7% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that Hong Leong Bank Berhad is also expected to grow slower than other industry participants. The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Hong Leong Bank Berhad's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Hong Leong Bank Berhad going out to 2027, and you can see them free on our platform here.. We don't want to rain on the parade too much, but we did also find 1 warning sign for Hong Leong Bank Berhad that you need to be mindful 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.
Yahoo
25-02-2025
- Business
- Yahoo
Perak Transit Berhad (KLSE:PTRANS) Will Be Hoping To Turn Its Returns On Capital Around
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? 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. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. Having said that, from a first glance at Perak Transit Berhad (KLSE:PTRANS) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look. 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 Perak Transit Berhad is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.06 = RM92m ÷ (RM1.6b - RM105m) (Based on the trailing twelve months to September 2024). So, Perak Transit Berhad has an ROCE of 6.0%. In absolute terms, that's a low return but it's around the Transportation industry average of 6.7%. See our latest analysis for Perak Transit Berhad Above you can see how the current ROCE for Perak Transit Berhad 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 Perak Transit Berhad . When we looked at the ROCE trend at Perak Transit Berhad, we didn't gain much confidence. Around five years ago the returns on capital were 9.8%, but since then they've fallen to 6.0%. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. 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 Perak Transit Berhad is reinvesting in the business, but returns have been falling. Investors must think there's better things to come because the stock has knocked it out of the park, delivering a 136% gain to shareholders who have held over the last five years. Ultimately, if the underlying trends persist, we wouldn't hold our breath on it being a multi-bagger going forward. On a final note, we found 2 warning signs for Perak Transit Berhad (1 is concerning) 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
Yahoo
18-02-2025
- Business
- Yahoo
Investors Will Want Zecon Berhad's (KLSE:ZECON) Growth In ROCE To Persist
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base 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. With that in mind, we've noticed some promising trends at Zecon Berhad (KLSE:ZECON) so let's look a bit deeper. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Zecon Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.067 = RM88m ÷ (RM1.6b - RM314m) (Based on the trailing twelve months to September 2024). Therefore, Zecon Berhad has an ROCE of 6.7%. Ultimately, that's a low return and it under-performs the Construction industry average of 11%. See our latest analysis for Zecon 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're interested in investigating Zecon Berhad's past further, check out this free graph covering Zecon Berhad's past earnings, revenue and cash flow. Even though ROCE is still low in absolute terms, it's good to see it's heading in the right direction. The data shows that returns on capital have increased substantially over the last five years to 6.7%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 192%. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers. One more thing to note, Zecon Berhad has decreased current liabilities to 19% of total assets over this period, which effectively reduces the amount of funding from suppliers or short-term creditors. So this improvement in ROCE has come from the business' underlying economics, which is great to see. 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 Zecon Berhad has. Astute investors may have an opportunity here because the stock has declined 11% in the last five years. With that in mind, we believe the promising trends warrant this stock for further investigation. One more thing: We've identified 3 warning signs with Zecon Berhad (at least 2 which are potentially serious) , and understanding these would certainly be useful. While Zecon 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. Sign in to access your portfolio
