Latest news with #RM13.3m
Yahoo
10-05-2025
- Business
- Yahoo
PLYTEC Holding Berhad's (KLSE:PLYTEC) Earnings Are Weaker Than They Seem
PLYTEC Holding Berhad (KLSE:PLYTEC) announced strong profits, but the stock was stagnant. We did some digging, and we found some concerning factors in the details. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. 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). 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. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. 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. 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, PLYTEC Holding Berhad had an accrual ratio of 0.23. We can therefore deduce that its free cash flow fell well short of covering its statutory profit. Even though it reported a profit of RM13.3m, a look at free cash flow indicates it actually burnt through RM27m in the last year. We also note that PLYTEC Holding Berhad's free cash flow was actually negative last year as well, so we could understand if shareholders were bothered by its outflow of RM27m. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of PLYTEC Holding Berhad. PLYTEC Holding Berhad's accrual ratio for the last twelve months signifies cash conversion is less than ideal, which is a negative when it comes to our view of its earnings. Because of this, we think that it may be that PLYTEC Holding Berhad's statutory profits are better than its underlying earnings power. But at least holders can take some solace from the 74% EPS growth in the last year. 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. If you'd like to know more about PLYTEC Holding Berhad as a business, it's important to be aware of any risks it's facing. When we did our research, we found 3 warning signs for PLYTEC Holding Berhad (1 makes us a bit uncomfortable!) that we believe deserve your full attention. This note has only looked at a single factor that sheds light on the nature of PLYTEC Holding Berhad's profit. 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.
Yahoo
23-02-2025
- Business
- Yahoo
SkyWorld Development Berhad Third Quarter 2025 Earnings: EPS: RM0.013 (vs RM0.025 in 3Q 2024)
Revenue: RM107.9m (down 37% from 3Q 2024). Net income: RM13.3m (down 47% from 3Q 2024). Profit margin: 12% (down from 15% in 3Q 2024). The decrease in margin was driven by lower revenue. EPS: RM0.013 (down from RM0.025 in 3Q 2024). All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 7.5% growth forecast for the Real Estate industry in Malaysia. Performance of the Malaysian Real Estate industry. The company's shares are down 2.0% from a week ago. Be aware that SkyWorld Development Berhad is showing 1 warning sign in our investment analysis that 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. Sign in to access your portfolio
Yahoo
23-02-2025
- Business
- Yahoo
SkyWorld Development Berhad Third Quarter 2025 Earnings: EPS: RM0.013 (vs RM0.025 in 3Q 2024)
Revenue: RM107.9m (down 37% from 3Q 2024). Net income: RM13.3m (down 47% from 3Q 2024). Profit margin: 12% (down from 15% in 3Q 2024). The decrease in margin was driven by lower revenue. EPS: RM0.013 (down from RM0.025 in 3Q 2024). All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 7.5% growth forecast for the Real Estate industry in Malaysia. Performance of the Malaysian Real Estate industry. The company's shares are down 2.0% from a week ago. Be aware that SkyWorld Development Berhad is showing 1 warning sign in our investment analysis that 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.
