Latest news with #RM41.7m
Yahoo
03-03-2025
- Business
- Yahoo
Turbo-Mech Berhad Full Year 2024 Earnings: EPS: RM0.008 (vs RM0.028 in FY 2023)
Revenue: RM41.7m (down 1.5% from FY 2023). Net income: RM879.0k (down 71% from FY 2023). Profit margin: 2.1% (down from 7.2% in FY 2023). The decrease in margin was primarily driven by higher expenses. EPS: RM0.008 (down from RM0.028 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Turbo-Mech Berhad shares are down 9.1% from a week ago. It's necessary to consider the ever-present spectre of investment risk. We've identified 4 warning signs with Turbo-Mech Berhad (at least 2 which are concerning), and understanding them should be part of your investment process. 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
28-02-2025
- Business
- Yahoo
Concerns Surrounding Uzma Berhad's (KLSE:UZMA) Performance
The recent earnings posted by Uzma Berhad (KLSE:UZMA) were solid, but the stock didn't move as much as we expected. We think this is due to investors looking beyond the statutory profits and being concerned with what they see. View our latest analysis for Uzma Berhad Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. 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. The ratio shows us how much a company's profit exceeds its FCF. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. 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, Uzma Berhad had an accrual ratio of 0.35. Therefore, we know that it's free cashflow was significantly lower than its statutory profit, raising questions about how useful that profit figure really is. Even though it reported a profit of RM41.7m, a look at free cash flow indicates it actually burnt through RM366m in the last year. We also note that Uzma Berhad's free cash flow was actually negative last year as well, so we could understand if shareholders were bothered by its outflow of RM366m. Unfortunately for shareholders, the company has also been issuing new shares, diluting their share of future earnings. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. To understand the value of a company's earnings growth, it is imperative to consider any dilution of shareholders' interests. Uzma Berhad expanded the number of shares on issue by 14% over the last year. As a result, its net income is now split between a greater number of shares. Per share metrics like EPS help us understand how much actual shareholders are benefitting from the company's profits, while the net income level gives us a better view of the company's absolute size. Check out Uzma Berhad's historical EPS growth by clicking on this link. Three years ago, Uzma Berhad lost money. On the bright side, in the last twelve months it grew profit by 6.8%. But EPS was far less impressive, dropping 3.9% in that time. This is a great example of why it's rather imprudent to rely only on net income as a growth measure. So you can see that the dilution has had a bit of an impact on shareholders. If Uzma Berhad's EPS can grow over time then that drastically improves the chances of the share price moving in the same direction. But on the other hand, we'd be far less excited to learn profit (but not EPS) was improving. For the ordinary retail shareholder, EPS is a great measure to check your hypothetical "share" of the company's profit. As it turns out, Uzma Berhad couldn't match its profit with cashflow and its dilution means that shareholders own less of the company than the did before (unless they bought more shares). For the reasons mentioned above, we think that a perfunctory glance at Uzma Berhad's statutory profits might make it look better than it really is on an underlying level. So while earnings quality is important, it's equally important to consider the risks facing Uzma Berhad at this point in time. Every company has risks, and we've spotted 4 warning signs for Uzma Berhad (of which 2 are potentially serious!) you should know about. Our examination of Uzma Berhad has focussed on certain factors that can make its earnings look better than they are. And, on that basis, we are somewhat skeptical. 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. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. 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
