Latest news with #RM1.7m
New Straits Times
3 days ago
- Sport
- New Straits Times
Grealish joins Everton in bid to reignite career
London (AFP) Manchester City winger Jack Grealish joined Everton on loan for the 2025-26 season on Tuesday in a bid to salvage his troubled career. Grealish fell out of favour with City boss Pep Guardiola last season and made just seven starts in the Premier League. The 29-year-old was left out of City's squad for the Club World Cup in the United States in a clear indication that he was no longer wanted by Guardiola. Everton's deal for Grealish, who earns a reported £300,000 (RM1.7m) per week, comes just before the new Premier League campaign starts for the Toffees at Leeds on Aug 18. "I'm over the moon to have signed for Everton — it's massive for me, honestly. This is a great club, with great fans," Grealish said. Grealish has chosen the number 18 shirt at Everton in tribute to Wayne Rooney and Paul Gascoigne, who wore it during their time with the club. "My two favourite English players ever are Wayne Rooney and Paul Gascoigne and I know they both wore number 18 here," he said. Grealish joined City from Aston Villa in 2021 for a then British record fee of £100 million. The England international has won three Premier League titles, the Champions League and the FA Cup with City, but his form had dipped significantly since he played a key role in the 2022-23 treble-winning campaign. He was left out of England's Euro 2024 squad, an omission that left him "heartbroken." Guardiola rarely picked Grealish last season despite City's struggles and he was left on the bench for the shock FA Cup final defeat against Crystal Palace.
Yahoo
10-05-2025
- Business
- Yahoo
Epicon Berhad's (KLSE:EPICON) Performance Raises Some Questions
Epicon Berhad's (KLSE:EPICON) stock rose after it released a robust earnings report. However, we think that shareholders should be aware of some other factors beyond the profit numbers. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. This ratio tells us how much of a company's profit is not backed by free cashflow. 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. Over the twelve months to December 2024, Epicon Berhad recorded an accrual ratio of 1.22. As a general rule, that bodes poorly for future profitability. And indeed, during the period the company didn't produce any free cash flow whatsoever. Over the last year it actually had negative free cash flow of RM51m, in contrast to the aforementioned profit of RM9.35m. It's worth noting that Epicon Berhad generated positive FCF of RM1.7m a year ago, so at least they've done it in the past. Notably, the company has issued new shares, thus diluting existing shareholders and reducing their share of future earnings. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Epicon Berhad. In order to understand the potential for per share returns, it is essential to consider how much a company is diluting shareholders. Epicon Berhad expanded the number of shares on issue by 5.5% over the last year. Therefore, each share now receives a smaller portion of profit. To talk about net income, without noticing earnings per share, is to be distracted by the big numbers while ignoring the smaller numbers that talk to per share value. Check out Epicon Berhad's historical EPS growth by clicking on this link. Three years ago, Epicon Berhad lost money. The good news is that profit was up 115% in the last twelve months. On the other hand, earnings per share are only up 86% over the same period. And so, you can see quite clearly that dilution is influencing shareholder earnings. Changes in the share price do tend to reflect changes in earnings per share, in the long run. So it will certainly be a positive for shareholders if Epicon Berhad can grow EPS persistently. However, if its profit increases while its earnings per share stay flat (or even fall) then shareholders might not see much benefit. For the ordinary retail shareholder, EPS is a great measure to check your hypothetical "share" of the company's profit. In conclusion, Epicon Berhad has weak cashflow relative to earnings, which indicates lower quality earnings, and the dilution means its earnings per share growth is weaker than its profit growth. For the reasons mentioned above, we think that a perfunctory glance at Epicon Berhad's statutory profits might make it look better than it really is on an underlying level. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Case in point: We've spotted 3 warning signs for Epicon Berhad you should be mindful of and 1 of these doesn't sit too well with us. In this article we've looked at a number of factors that can impair the utility of profit numbers, and we've come away cautious. 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. 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
27-03-2025
- Business
- Yahoo
Elridge Energy Holdings Berhad's (KLSE:ELRIDGE) Promising Earnings May Rest On Soft Foundations
Elridge Energy Holdings Berhad (KLSE:ELRIDGE) announced strong profits, but the stock was stagnant. Our analysis suggests that shareholders have noticed something concerning in the numbers. 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. 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. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. Elridge Energy Holdings Berhad has an accrual ratio of 0.72 for the year to December 2024. As a general rule, that bodes poorly for future profitability. And indeed, during the period the company didn't produce any free cash flow whatsoever. Over the last year it actually had negative free cash flow of RM1.7m, in contrast to the aforementioned profit of RM41.2m. It's worth noting that Elridge Energy Holdings Berhad generated positive FCF of RM19m a year ago, so at least they've done it in the past. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Elridge Energy Holdings Berhad. As we discussed above, we think Elridge Energy Holdings Berhad's earnings were not supported by free cash flow, which might concern some investors. For this reason, we think that Elridge Energy Holdings Berhad's statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company. Sadly, its EPS was down over the last twelve months. 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. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example - Elridge Energy Holdings Berhad has 1 warning sign we think you should be aware of. This note has only looked at a single factor that sheds light on the nature of Elridge Energy Holdings Berhad'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. Sign in to access your portfolio
Yahoo
04-03-2025
- Business
- Yahoo
Epicon Berhad (KLSE:EPICON) Posted Healthy Earnings But There Are Some Other Factors To Be Aware Of
Last week's profit announcement from Epicon Berhad (KLSE:EPICON) was underwhelming for investors, despite headline numbers being robust. We did some digging and found some worrying underlying problems. Check out our latest analysis for Epicon Berhad One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. The ratio shows us how much a company's profit exceeds its FCF. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking. For the year to December 2024, Epicon Berhad had an accrual ratio of 1.05. As a general rule, that bodes poorly for future profitability. And indeed, during the period the company didn't produce any free cash flow whatsoever. In the last twelve months it actually had negative free cash flow, with an outflow of RM51m despite its profit of RM9.39m, mentioned above. It's worth noting that Epicon Berhad generated positive FCF of RM1.7m a year ago, so at least they've done it in the past. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Epicon Berhad. As we discussed above, we think Epicon Berhad's earnings were not supported by free cash flow, which might concern some investors. As a result, we think it may well be the case that Epicon Berhad's underlying earnings power is lower than its statutory profit. But the happy news is that, while acknowledging we have to look beyond the statutory numbers, those numbers are still improving, with EPS growing at a very high rate over the last year. 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 Epicon Berhad, you'd also look into what risks it is currently facing. Be aware that Epicon Berhad is showing 2 warning signs in our investment analysis and 1 of those is concerning... This note has only looked at a single factor that sheds light on the nature of Epicon 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
04-03-2025
- Business
- Yahoo
Elridge Energy Holdings Berhad's (KLSE:ELRIDGE) Earnings Are Weaker Than They Seem
Elridge Energy Holdings Berhad (KLSE:ELRIDGE) announced strong profits, but the stock was stagnant. We did some digging, and we found some concerning factors in the details. View our latest analysis for Elridge Energy Holdings Berhad In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. This ratio tells us how much of a company's profit is not backed by free cashflow. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". For the year to December 2024, Elridge Energy Holdings Berhad had an accrual ratio of 0.72. As a general rule, that bodes poorly for future profitability. To wit, the company did not generate one whit of free cashflow in that time. Even though it reported a profit of RM41.2m, a look at free cash flow indicates it actually burnt through RM1.7m in the last year. We saw that FCF was RM18m a year ago though, so Elridge Energy Holdings Berhad has at least been able to generate positive FCF in the past. 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. As we discussed above, we think Elridge Energy Holdings Berhad's earnings were not supported by free cash flow, which might concern some investors. For this reason, we think that Elridge Energy Holdings Berhad's statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company. In further bad news, its earnings per share decreased in the last year. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. If you want to do dive deeper into Elridge Energy Holdings Berhad, you'd also look into what risks it is currently facing. While conducting our analysis, we found that Elridge Energy Holdings Berhad has 1 warning sign and it would be unwise to ignore it. Today we've zoomed in on a single data point to better understand the nature of Elridge Energy Holdings 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. 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.
