Latest news with #RM305m
Yahoo
23-05-2025
- Business
- Yahoo
Swift Haulage Berhad (KLSE:SWIFT) Could Be Struggling To Allocate Capital
If you're looking for a multi-bagger, there's a few things to keep an eye out for. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. Having said that, from a first glance at Swift Haulage Berhad (KLSE:SWIFT) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. 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 Swift Haulage Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.053 = RM75m ÷ (RM1.7b - RM305m) (Based on the trailing twelve months to March 2025). Thus, Swift Haulage Berhad has an ROCE of 5.3%. On its own that's a low return on capital but it's in line with the industry's average returns of 5.3%. Check out our latest analysis for Swift Haulage Berhad Above you can see how the current ROCE for Swift Haulage 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 Swift Haulage Berhad for free. On the surface, the trend of ROCE at Swift Haulage Berhad doesn't inspire confidence. To be more specific, ROCE has fallen from 9.6% over the last five years. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line. On a related note, Swift Haulage Berhad has decreased its current liabilities to 18% of total assets. That could partly explain why the ROCE has dropped. What's more, this can reduce some aspects of risk to the business because now the company's suppliers or short-term creditors are funding less of its operations. Since the business is basically funding more of its operations with it's own money, you could argue this has made the business less efficient at generating ROCE. Bringing it all together, while we're somewhat encouraged by Swift Haulage Berhad's reinvestment in its own business, we're aware that returns are shrinking. Since the stock has declined 41% over the last three years, investors may not be too optimistic on this trend improving either. In any case, the stock doesn't have these traits of a multi-bagger discussed above, so if that's what you're looking for, we think you'd have more luck elsewhere. If you'd like to know more about Swift Haulage Berhad, we've spotted 4 warning signs, and 1 of them doesn't sit too well with us. 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
22-05-2025
- Business
- Yahoo
Swift Haulage Berhad (KLSE:SWIFT) Could Be Struggling To Allocate Capital
If you're looking for a multi-bagger, there's a few things to keep an eye out for. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. Having said that, from a first glance at Swift Haulage Berhad (KLSE:SWIFT) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. 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 Swift Haulage Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.053 = RM75m ÷ (RM1.7b - RM305m) (Based on the trailing twelve months to March 2025). Thus, Swift Haulage Berhad has an ROCE of 5.3%. On its own that's a low return on capital but it's in line with the industry's average returns of 5.3%. Check out our latest analysis for Swift Haulage Berhad Above you can see how the current ROCE for Swift Haulage 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 Swift Haulage Berhad for free. On the surface, the trend of ROCE at Swift Haulage Berhad doesn't inspire confidence. To be more specific, ROCE has fallen from 9.6% over the last five years. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line. On a related note, Swift Haulage Berhad has decreased its current liabilities to 18% of total assets. That could partly explain why the ROCE has dropped. What's more, this can reduce some aspects of risk to the business because now the company's suppliers or short-term creditors are funding less of its operations. Since the business is basically funding more of its operations with it's own money, you could argue this has made the business less efficient at generating ROCE. Bringing it all together, while we're somewhat encouraged by Swift Haulage Berhad's reinvestment in its own business, we're aware that returns are shrinking. Since the stock has declined 41% over the last three years, investors may not be too optimistic on this trend improving either. In any case, the stock doesn't have these traits of a multi-bagger discussed above, so if that's what you're looking for, we think you'd have more luck elsewhere. If you'd like to know more about Swift Haulage Berhad, we've spotted 4 warning signs, and 1 of them doesn't sit too well with us. 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. 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
17-03-2025
- Business
- Yahoo
Declining Stock and Solid Fundamentals: Is The Market Wrong About Amway (Malaysia) Holdings Berhad (KLSE:AMWAY)?
Amway (Malaysia) Holdings Berhad (KLSE:AMWAY) has had a rough three months with its share price down 17%. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. Specifically, we decided to study Amway (Malaysia) Holdings Berhad's ROE in this article. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. See our latest analysis for Amway (Malaysia) Holdings Berhad ROE 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 Amway (Malaysia) Holdings Berhad is: 32% = RM96m ÷ RM305m (Based on the trailing twelve months to December 2024). The 'return' is the yearly profit. That means that for every MYR1 worth of shareholders' equity, the company generated MYR0.32 in profit. 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. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. Firstly, we acknowledge that Amway (Malaysia) Holdings Berhad has a significantly high ROE. Secondly, even when compared to the industry average of 7.2% the company's ROE is quite impressive. So, the substantial 24% net income growth seen by Amway (Malaysia) Holdings Berhad over the past five years isn't overly surprising. As a next step, we compared Amway (Malaysia) Holdings Berhad's net income growth with the industry and found that the company has a similar growth figure when compared with the industry average growth rate of 20% in the same period. Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about Amway (Malaysia) Holdings Berhad's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. Amway (Malaysia) Holdings Berhad's three-year median payout ratio is a pretty moderate 42%, meaning the company retains 58% of its income. This suggests that its dividend is well covered, and given the high growth we discussed above, it looks like Amway (Malaysia) Holdings Berhad is reinvesting its earnings efficiently. Additionally, Amway (Malaysia) Holdings Berhad has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Looking at the current analyst consensus data, we can see that the company's future payout ratio is expected to rise to 70% over the next three years. On the whole, we feel that Amway (Malaysia) Holdings Berhad's performance has been quite good. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. 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
26-02-2025
- Business
- Yahoo
Here's What Analysts Are Forecasting For CTOS Digital Berhad (KLSE:CTOS) Following Its Earnings Miss
CTOS Digital Berhad (KLSE:CTOS) just released its latest annual report and things are not looking great. CTOS Digital Berhad missed analyst forecasts, with revenues of RM305m and statutory earnings per share (EPS) of RM0.046, falling short by 5.5% and 5.3% respectively. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. Check out our latest analysis for CTOS Digital Berhad After the latest results, the nine analysts covering CTOS Digital Berhad are now predicting revenues of RM348.6m in 2025. If met, this would reflect a decent 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 15% to RM0.053. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM380.1m and earnings per share (EPS) of RM0.059 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates. Despite the cuts to forecast earnings, there was no real change to the RM1.57 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic CTOS Digital Berhad analyst has a price target of RM1.84 per share, while the most pessimistic values it at RM1.40. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting CTOS Digital Berhad is an easy business to forecast or the the analysts are all using similar assumptions. 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. We would highlight that CTOS Digital Berhad's revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2025 being well below the historical 20% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.2% annually. Even after the forecast slowdown in growth, it seems obvious that CTOS Digital Berhad is also expected to grow faster than the wider industry. The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CTOS Digital Berhad. They also downgraded CTOS Digital Berhad's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at RM1.57, with the latest estimates not enough to have an impact on their price targets. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple CTOS Digital Berhad analysts - going out to 2027, and you can see them free on our platform here. You should always think about risks though. Case in point, we've spotted 1 warning sign for CTOS Digital Berhad you should be aware of. 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
