Latest news with #RM174m
Yahoo
23-05-2025
- Business
- Yahoo
Karex Berhad's (KLSE:KAREX) Returns On Capital Are Heading Higher
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? 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. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. So on that note, Karex Berhad (KLSE:KAREX) looks quite promising in regards to its trends of return on capital. We check all companies for important risks. See what we found for Karex Berhad in our free report. 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. Analysts use this formula to calculate it for Karex Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.052 = RM28m ÷ (RM711m - RM174m) (Based on the trailing twelve months to December 2024). Therefore, Karex Berhad has an ROCE of 5.2%. Ultimately, that's a low return and it under-performs the Personal Products industry average of 10%. Check out our latest analysis for Karex Berhad Above you can see how the current ROCE for Karex 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 Karex Berhad . Karex Berhad's ROCE growth is quite impressive. The figures show that over the last five years, ROCE has grown 1,524% whilst employing roughly the same amount of capital. So our take on this is that the business has increased efficiencies to generate these higher returns, all the while not needing to make any additional investments. 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. To bring it all together, Karex Berhad has done well to increase the returns it's generating from its capital employed. Considering the stock has delivered 37% 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. 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. 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. 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
23-05-2025
- Business
- Yahoo
Karex Berhad's (KLSE:KAREX) Returns On Capital Are Heading Higher
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? 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. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. So on that note, Karex Berhad (KLSE:KAREX) looks quite promising in regards to its trends of return on capital. We check all companies for important risks. See what we found for Karex Berhad in our free report. 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. Analysts use this formula to calculate it for Karex Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.052 = RM28m ÷ (RM711m - RM174m) (Based on the trailing twelve months to December 2024). Therefore, Karex Berhad has an ROCE of 5.2%. Ultimately, that's a low return and it under-performs the Personal Products industry average of 10%. Check out our latest analysis for Karex Berhad Above you can see how the current ROCE for Karex 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 Karex Berhad . Karex Berhad's ROCE growth is quite impressive. The figures show that over the last five years, ROCE has grown 1,524% whilst employing roughly the same amount of capital. So our take on this is that the business has increased efficiencies to generate these higher returns, all the while not needing to make any additional investments. 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. To bring it all together, Karex Berhad has done well to increase the returns it's generating from its capital employed. Considering the stock has delivered 37% 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. 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. 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.
Yahoo
20-05-2025
- Business
- Yahoo
NEXG Berhad's (KLSE:NEXG) market cap rose RM174m last week; retail investors who hold 37% profited and so did insiders
NEXG Berhad's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public 51% of the business is held by the top 12 shareholders Insiders own 24% of NEXG Berhad Our free stock report includes 3 warning signs investors should be aware of before investing in NEXG Berhad. Read for free now. Every investor in NEXG Berhad (KLSE:NEXG) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 37% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. While retail investors were the group that benefitted the most from last week's RM174m market cap gain, insiders too had a 24% share in those profits. Let's take a closer look to see what the different types of shareholders can tell us about NEXG Berhad. See our latest analysis for NEXG Berhad Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. NEXG Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see NEXG Berhad's historic earnings and revenue below, but keep in mind there's always more to the story. Hedge funds don't have many shares in NEXG Berhad. The company's CEO Abu Bin Noordin is the largest shareholder with 7.8% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.9% and 4.7%, of the shares outstanding, respectively. A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 51% implying that no single shareholder has a majority. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our information suggests that insiders maintain a significant holding in NEXG Berhad. Insiders have a RM265m stake in this RM1.1b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently. The general public, who are usually individual investors, hold a 37% stake in NEXG Berhad. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. Our data indicates that Private Companies hold 21%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research. It's always worth thinking about the different groups who own shares in a company. But to understand NEXG Berhad better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for NEXG Berhad you should be aware of, and 1 of them is a bit unpleasant. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. 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
07-05-2025
- Business
- Yahoo
Sunview Group Berhad's (KLSE:SUNVIEW) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?
With its stock down 15% over the past three months, it is easy to disregard Sunview Group Berhad (KLSE:SUNVIEW). However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. In this article, we decided to focus on Sunview Group Berhad's ROE. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital. We've discovered 2 warning signs about Sunview Group Berhad. View them for free. How Is ROE Calculated? Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Sunview Group Berhad is: 5.7% = RM9.9m ÷ RM174m (Based on the trailing twelve months to December 2024). The 'return' is the profit over the last twelve months. Another way to think of that is that for every MYR1 worth of equity, the company was able to earn MYR0.06 in profit. See our latest analysis for Sunview Group Berhad Why Is ROE Important For Earnings Growth? Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. Sunview Group Berhad's Earnings Growth And 5.7% ROE When you first look at it, Sunview Group Berhad's ROE doesn't look that attractive. We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 7.9%. Although, we can see that Sunview Group Berhad saw a modest net income growth of 15% over the past five years. So, there might be other aspects that are positively influencing the company's earnings growth. For instance, the company has a low payout ratio or is being managed efficiently. We then performed a comparison between Sunview Group Berhad's net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 16% in the same 5-year period. KLSE:SUNVIEW Past Earnings Growth May 7th 2025 The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Sunview Group Berhad is trading on a high P/E or a low P/E, relative to its industry.
Yahoo
21-04-2025
- Business
- Yahoo
Is V.S. Industry Berhad's (KLSE:VS) Stock Price Struggling As A Result Of Its Mixed Financials?
With its stock down 29% over the past three months, it is easy to disregard V.S. Industry Berhad (KLSE:VS). It is possible that the markets have ignored the company's differing financials and decided to lean-in to the negative sentiment. Fundamentals usually dictate market outcomes so it makes sense to study the company's financials. In this article, we decided to focus on V.S. Industry Berhad's ROE. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. We've discovered 2 warning signs about V.S. Industry Berhad. View them for free. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for V.S. Industry Berhad is: 7.7% = RM174m ÷ RM2.3b (Based on the trailing twelve months to January 2025). The 'return' refers to a company's earnings over the last year. One way to conceptualize this is that for each MYR1 of shareholders' capital it has, the company made MYR0.08 in profit. View our latest analysis for V.S. Industry Berhad So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. At first glance, V.S. Industry Berhad's ROE doesn't look very promising. Next, when compared to the average industry ROE of 10%, the company's ROE leaves us feeling even less enthusiastic. Thus, the low net income growth of 3.3% seen by V.S. Industry Berhad over the past five years could probably be the result of the low ROE. Next, on comparing with the industry net income growth, we found that V.S. Industry Berhad's reported growth was lower than the industry growth of 13% over the last few years, which is not something we like to see. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. What is VS worth today? The intrinsic value infographic in our free research report helps visualize whether VS is currently mispriced by the market. Despite having a normal three-year median payout ratio of 44% (or a retention ratio of 56% over the past three years, V.S. Industry Berhad has seen very little growth in earnings as we saw above. So there could be some other explanation in that regard. For instance, the company's business may be deteriorating. In addition, V.S. Industry Berhad has been paying dividends over a period of at least ten years suggesting that keeping up dividend payments is way more important to the management even if it comes at the cost of business growth. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 49%. Still, forecasts suggest that V.S. Industry Berhad's future ROE will rise to 14% even though the the company's payout ratio is not expected to change by much. Overall, we have mixed feelings about V.S. Industry Berhad. While the company does have a high rate of profit retention, its low rate of return is probably hampering its earnings growth. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. 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.
