Latest news with #RM321m
Yahoo
27-05-2025
- Business
- Yahoo
One HeveaBoard Berhad (KLSE:HEVEA) Analyst Has Been Cutting Their Forecasts
Market forces rained on the parade of HeveaBoard Berhad (KLSE:HEVEA) shareholders today, when the covering analyst downgraded their forecasts for this year. Revenue estimates were cut sharply as the analyst signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Following this downgrade, HeveaBoard Berhad's single analyst are forecasting 2025 revenues to be RM321m, approximately in line with the last 12 months. Previously, the analyst had been modelling revenues of RM432m and earnings per share (EPS) of RM0.003 in 2025. Indeed, we can see that the analyst is a lot more bearish about HeveaBoard Berhad's prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot. Check out our latest analysis for HeveaBoard Berhad Notably, the analyst has cut their price target 8.3% to RM0.22, suggesting concerns around HeveaBoard Berhad's valuation. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's also worth noting that the years of declining sales look to have come to an end, with the forecast for flat revenues to the end of 2025. Historically, HeveaBoard Berhad's sales have shrunk approximately 5.6% annually over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 13% annually. Although HeveaBoard Berhad's revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry. The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for HeveaBoard Berhad. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that HeveaBoard Berhad's revenues are expected to grow slower than the wider market. The consensus price target fell measurably, with the analyst seemingly not reassured by recent business developments, leading to a lower estimate of HeveaBoard Berhad's future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on HeveaBoard Berhad after today. That said, this analyst might have good reason to be negative on HeveaBoard Berhad, given the risk of cutting its dividend. Learn more, and discover the 1 other risk we've identified, for free on our platform here. Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders. 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
18-04-2025
- Business
- Yahoo
With A 5.3% Return On Equity, Is Eversendai Corporation Berhad (KLSE:SENDAI) A Quality Stock?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. By way of learning-by-doing, we'll look at ROE to gain a better understanding of Eversendai Corporation Berhad (KLSE:SENDAI). Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Put another way, it reveals the company's success at turning shareholder investments into profits. Our free stock report includes 4 warning signs investors should be aware of before investing in Eversendai Corporation Berhad. Read for free now. 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 Eversendai Corporation Berhad is: 5.3% = RM17m ÷ RM321m (Based on the trailing twelve months to December 2024). The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every MYR1 worth of equity, the company was able to earn MYR0.05 in profit. See our latest analysis for Eversendai Corporation Berhad By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. If you look at the image below, you can see Eversendai Corporation Berhad has a lower ROE than the average (8.5%) in the Construction industry classification. Unfortunately, that's sub-optimal. That being said, a low ROE is not always a bad thing, especially if the company has low leverage as this still leaves room for improvement if the company were to take on more debt. When a company has low ROE but high debt levels, we would be cautious as the risk involved is too high. To know the 4 risks we have identified for Eversendai Corporation Berhad visit our risks dashboard for free. Companies usually need to invest money to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. Eversendai Corporation Berhad does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.98. With a fairly low ROE, and significant use of debt, it's hard to get excited about this business at the moment. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it. Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. All else being equal, a higher ROE is better. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. Check the past profit growth by Eversendai Corporation Berhad by looking at this visualization of past earnings, revenue and cash flow. Of course Eversendai Corporation Berhad may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt. 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
01-04-2025
- Business
- Yahoo
Returns On Capital Signal Tricky Times Ahead For SFP Tech Holdings Berhad (KLSE:SFPTECH)
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? 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. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. In light of that, when we looked at SFP Tech Holdings Berhad (KLSE:SFPTECH) and its ROCE trend, we weren't exactly thrilled. 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. 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. The formula for this calculation on SFP Tech Holdings Berhad is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.082 = RM22m ÷ (RM321m - RM56m) (Based on the trailing twelve months to December 2024). Therefore, SFP Tech Holdings Berhad has an ROCE of 8.2%. On its own that's a low return on capital but it's in line with the industry's average returns of 8.2%. View our latest analysis for SFP Tech Holdings Berhad In the above chart we have measured SFP Tech 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 SFP Tech Holdings Berhad for free. On the surface, the trend of ROCE at SFP Tech Holdings Berhad doesn't inspire confidence. Around five years ago the returns on capital were 23%, but since then they've fallen to 8.2%. Although, given both revenue and the amount of assets employed in the business have increased, it could suggest the company is investing in growth, and the extra capital has led to a short-term reduction in ROCE. If these investments prove successful, this can bode very well for long term stock performance. In summary, despite lower returns in the short term, we're encouraged to see that SFP Tech Holdings Berhad is reinvesting for growth and has higher sales as a result. These growth trends haven't led to growth returns though, since the stock has fallen 62% over the last year. So we think it'd be worthwhile to look further into this stock given the trends look encouraging. Since virtually every company faces some risks, it's worth knowing what they are, and we've spotted 3 warning signs for SFP Tech Holdings Berhad (of which 2 don't sit too well with us!) that you should know about. While SFP Tech 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
