Latest news with #RM259m
Yahoo
03-06-2025
- Business
- Yahoo
Pantech Group Holdings Berhad (KLSE:PANTECH) Is Looking To Continue Growing Its Returns On Capital
There are a few key trends to look for if we want to identify the next multi-bagger. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base 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. With that in mind, we've noticed some promising trends at Pantech Group Holdings Berhad (KLSE:PANTECH) so let's look a bit deeper. 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. 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. To calculate this metric for Pantech Group Holdings Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.10 = RM125m ÷ (RM1.5b - RM259m) (Based on the trailing twelve months to February 2025). So, Pantech Group Holdings Berhad has an ROCE of 10%. In absolute terms, that's a satisfactory return, but compared to the Metals and Mining industry average of 7.3% it's much better. See our latest analysis for Pantech Group Holdings Berhad In the above chart we have measured Pantech Group Holdings Berhad's prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Pantech Group Holdings Berhad . Investors would be pleased with what's happening at Pantech Group Holdings Berhad. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 10%. The amount of capital employed has increased too, by 69%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed. To sum it up, Pantech Group Holdings Berhad has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. Since the stock has returned a staggering 151% to shareholders over the last five years, it looks like investors are recognizing these changes. Therefore, we think it would be worth your time to check if these trends are going to continue. Pantech Group Holdings Berhad does have some risks though, and we've spotted 1 warning sign for Pantech Group Holdings Berhad that you might be interested in. 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. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
20-04-2025
- Business
- Yahoo
Returns on Capital Paint A Bright Future For Hume Cement Industries Berhad (KLSE:HUMEIND)
What are the early trends we should look for to identify a stock that could multiply in value over the long term? Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. Speaking of which, we noticed some great changes in Hume Cement Industries Berhad's (KLSE:HUMEIND) returns on capital, so let's have a look. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. 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. Analysts use this formula to calculate it for Hume Cement Industries Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.31 = RM311m ÷ (RM1.3b - RM259m) (Based on the trailing twelve months to December 2024). So, Hume Cement Industries Berhad has an ROCE of 31%. In absolute terms that's a great return and it's even better than the Basic Materials industry average of 7.0%. Check out our latest analysis for Hume Cement Industries Berhad In the above chart we have measured Hume Cement Industries 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 Hume Cement Industries Berhad for free. We're delighted to see that Hume Cement Industries Berhad is reaping rewards from its investments and is now generating some pre-tax profits. About five years ago the company was generating losses but things have turned around because it's now earning 31% on its capital. And unsurprisingly, like most companies trying to break into the black, Hume Cement Industries Berhad is utilizing 57% more capital than it was five years ago. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, both common traits of a multi-bagger. One more thing to note, Hume Cement Industries Berhad has decreased current liabilities to 20% of total assets over this period, which effectively reduces the amount of funding from suppliers or short-term creditors. Therefore we can rest assured that the growth in ROCE is a result of the business' fundamental improvements, rather than a cooking class featuring this company's books. Long story short, we're delighted to see that Hume Cement Industries Berhad's reinvestment activities have paid off and the company is now profitable. And a remarkable 148% total return over the last five years tells us that investors are expecting more good things to come in the future. In light of that, we think it's worth looking further into this stock because if Hume Cement Industries Berhad can keep these trends up, it could have a bright future ahead. On a final note, we've found 2 warning signs for Hume Cement Industries Berhad that we think you should be aware of. Hume Cement Industries Berhad is not the only stock earning high returns. If you'd like to see more, check out our free list of companies earning high returns on equity with solid fundamentals. 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
12-03-2025
- Business
- Yahoo
Aneka Jaringan Holdings Berhad (KLSE:ANEKA) Is Finding It Tricky To Allocate Its Capital
Ignoring the stock price of a company, what are the underlying trends that tell us a business is past the growth phase? More often than not, we'll see a declining return on capital employed (ROCE) and a declining amount of capital employed. This indicates to us that the business is not only shrinking the size of its net assets, but its returns are falling as well. Having said that, after a brief look, Aneka Jaringan Holdings Berhad (KLSE:ANEKA) we aren't filled with optimism, but let's investigate further. 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 Aneka Jaringan Holdings Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.036 = RM4.2m ÷ (RM259m - RM142m) (Based on the trailing twelve months to November 2024). Thus, Aneka Jaringan Holdings Berhad has an ROCE of 3.6%. Ultimately, that's a low return and it under-performs the Construction industry average of 8.9%. See our latest analysis for Aneka Jaringan Holdings Berhad Historical performance is a great place to start when researching a stock so above you can see the gauge for Aneka Jaringan Holdings Berhad's ROCE against it's prior returns. If you're interested in investigating Aneka Jaringan Holdings Berhad's past further, check out this free graph covering Aneka Jaringan Holdings Berhad's past earnings, revenue and cash flow. There is reason to be cautious about Aneka Jaringan Holdings Berhad, given the returns are trending downwards. To be more specific, the ROCE was 24% five years ago, but since then it has dropped noticeably. On top of that, it's worth noting that the amount of capital employed within the business has remained relatively steady. Companies that exhibit these attributes tend to not be shrinking, but they can be mature and facing pressure on their margins from competition. If these trends continue, we wouldn't expect Aneka Jaringan Holdings Berhad to turn into a multi-bagger. On a separate but related note, it's important to know that Aneka Jaringan Holdings Berhad has a current liabilities to total assets ratio of 55%, which we'd consider pretty high. This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk. Ideally we'd like to see this reduce as that would mean fewer obligations bearing risks. In the end, the trend of lower returns on the same amount of capital isn't typically an indication that we're looking at a growth stock. It should come as no surprise then that the stock has fallen 21% over the last three years, so it looks like investors are recognizing these changes. That being the case, unless the underlying trends revert to a more positive trajectory, we'd consider looking elsewhere. If you want to continue researching Aneka Jaringan Holdings Berhad, you might be interested to know about the 3 warning signs that our analysis has discovered. While Aneka Jaringan 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
