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Yahoo
30-05-2025
- Business
- Yahoo
Here's Why We Think Muhibbah Engineering (M) Bhd (KLSE:MUHIBAH) Might Deserve Your Attention Today
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. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Muhibbah Engineering (M) Bhd (KLSE:MUHIBAH). 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. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. In business, profits are a key measure of success; and share prices tend to reflect earnings per share (EPS) performance. So for many budding investors, improving EPS is considered a good sign. It's an outstanding feat for Muhibbah Engineering (M) Bhd to have grown EPS from RM0.0057 to RM0.11 in just one year. When you see earnings grow that quickly, it often means good things ahead for the company. Could this be a sign that the business has reached an inflection point? Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. EBIT margins for Muhibbah Engineering (M) Bhd remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 40% to RM1.9b. 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. View our latest analysis for Muhibbah Engineering (M) Bhd Muhibbah Engineering (M) Bhd isn't a huge company, given its market capitalisation of RM434m. That makes it extra important to check on its balance sheet strength. Many consider high insider ownership to be a strong sign of alignment between the leaders of a company and the ordinary shareholders. So those who are interested in Muhibbah Engineering (M) Bhd will be delighted to know that insiders have shown their belief, holding a large proportion of the company's shares. In fact, they own 35% of the shares, making insiders a very influential shareholder group. Those who are comforted by solid insider ownership like this should be happy, as it implies that those running the business are genuinely motivated to create shareholder value. With that sort of holding, insiders have about RM153m riding on the stock, at current prices. That's nothing to sneeze at! Muhibbah Engineering (M) Bhd's earnings per share growth have been climbing higher at an appreciable rate. That EPS growth certainly is attention grabbing, and the large insider ownership only serves to further stoke our interest. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. Based on the sum of its parts, we definitely think its worth watching Muhibbah Engineering (M) Bhd very closely. You still need to take note of risks, for example - Muhibbah Engineering (M) Bhd has 2 warning signs (and 1 which is potentially serious) we think you should know about. 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. 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
Press Metal Aluminium Holdings Berhad (KLSE:PMETAL) Is Doing The Right Things To Multiply Its Share Price
There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. Speaking of which, we noticed some great changes in Press Metal Aluminium Holdings Berhad's (KLSE:PMETAL) returns on capital, so let's have a look. The end of cancer? These 15 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for Press Metal Aluminium Holdings Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.14 = RM1.9b ÷ (RM17b - RM3.3b) (Based on the trailing twelve months to December 2024). Therefore, Press Metal Aluminium Holdings Berhad has an ROCE of 14%. On its own, that's a standard return, however it's much better than the 6.0% generated by the Metals and Mining industry. View our latest analysis for Press Metal Aluminium Holdings Berhad In the above chart we have measured Press Metal Aluminium Holdings Berhad's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Press Metal Aluminium Holdings Berhad for free. Press Metal Aluminium Holdings Berhad is displaying some positive trends. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 14%. The amount of capital employed has increased too, by 65%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed. All in all, it's terrific to see that Press Metal Aluminium Holdings Berhad is reaping the rewards from prior investments and is growing its capital base. Since the stock has returned a staggering 245% to shareholders over the last five years, it looks like investors are recognizing these changes. In light of that, we think it's worth looking further into this stock because if Press Metal Aluminium Holdings Berhad can keep these trends up, it could have a bright future ahead. Before jumping to any conclusions though, we need to know what value we're getting for the current share price. That's where you can check out our that compares the share price and estimated value. While Press Metal Aluminium Holdings Berhad may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. 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
10-03-2025
- Business
- Yahoo
Returns At TASCO Berhad (KLSE:TASCO) Are On The Way Up
To find a multi-bagger stock, what are the underlying trends we should look for in a business? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. With that in mind, we've noticed some promising trends at TASCO Berhad (KLSE:TASCO) so let's look a bit deeper. 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. The formula for this calculation on TASCO Berhad is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.064 = RM62m ÷ (RM1.9b - RM977m) (Based on the trailing twelve months to December 2024). Thus, TASCO Berhad has an ROCE of 6.4%. On its own that's a low return on capital but it's in line with the industry's average returns of 6.3%. Check out our latest analysis for TASCO Berhad Above you can see how the current ROCE for TASCO Berhad compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering TASCO Berhad for free. TASCO Berhad's ROCE growth is quite impressive. More specifically, while the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 62% in that same time. Basically the business is generating higher returns from the same amount of capital and that is proof that there are improvements in the company's efficiencies. On that front, things are looking good so it's worth exploring what management has said about growth plans going forward. For the record though, there was a noticeable increase in the company's current liabilities over the period, so we would attribute some of the ROCE growth to that. Effectively this means that suppliers or short-term creditors are now funding 50% of the business, which is more than it was five years ago. And with current liabilities at those levels, that's pretty high. As discussed above, TASCO Berhad appears to be getting more proficient at generating returns since capital employed has remained flat but earnings (before interest and tax) are up. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. Therefore, we think it would be worth your time to check if these trends are going to continue. On a separate note, we've found 1 warning sign for TASCO Berhad you'll probably want to know about. 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.
Yahoo
09-03-2025
- Business
- Yahoo
Analysts Just Published A Bright New Outlook For MBSB Berhad's (KLSE:MBSB)
MBSB Berhad (KLSE:MBSB) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Following the upgrade, the most recent consensus for MBSB Berhad from its three analysts is for revenues of RM1.9b in 2025 which, if met, would be a major 26% increase on its sales over the past 12 months. Statutory earnings per share are presumed to soar 41% to RM0.07. Prior to this update, the analysts had been forecasting revenues of RM1.7b and earnings per share (EPS) of RM0.06 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates. See our latest analysis for MBSB Berhad With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.6% to RM0.76 per share. 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 clear from the latest estimates that MBSB Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that MBSB Berhad is expected to grow much faster than its industry. The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, MBSB Berhad could be worth investigating further. 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 MBSB Berhad going out to 2027, and you can see them free on our platform here.. Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free 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.
Yahoo
23-02-2025
- Business
- Yahoo
Kossan Rubber Industries Bhd (KLSE:KOSSAN) Just Reported, And Analysts Assigned A RM2.43 Price Target
There's been a notable change in appetite for Kossan Rubber Industries Bhd (KLSE:KOSSAN) shares in the week since its annual report, with the stock down 18% to RM1.91. Revenues came in 3.7% below expectations, at RM1.9b. Statutory earnings per share were relatively better off, with a per-share profit of RM0.047 being roughly in line with analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kossan Rubber Industries Bhd after the latest results. View our latest analysis for Kossan Rubber Industries Bhd Taking into account the latest results, the consensus forecast from Kossan Rubber Industries Bhd's 16 analysts is for revenues of RM2.24b in 2025. This reflects a notable 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 30% to RM0.061. Before this earnings report, the analysts had been forecasting revenues of RM2.35b and earnings per share (EPS) of RM0.072 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates. The consensus price target fell 6.7% to RM2.43, with the weaker earnings outlook clearly leading valuation estimates. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Kossan Rubber Industries Bhd at RM3.35 per share, while the most bearish prices it at RM1.60. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business. These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kossan Rubber Industries Bhd's past performance and to peers in the same industry. For example, we noticed that Kossan Rubber Industries Bhd's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 17% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 16% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 14% per year. So it looks like Kossan Rubber Industries Bhd is expected to grow at about the same rate as the wider industry. The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Kossan Rubber Industries Bhd. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business. With that in mind, we wouldn't be too quick to come to a conclusion on Kossan Rubber Industries Bhd. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Kossan Rubber Industries Bhd analysts - going out to 2027, and you can see them free on our platform here. You still need to take note of risks, for example - Kossan Rubber Industries Bhd has 3 warning signs (and 2 which are a bit concerning) we think you should know about. 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.
