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Does PTT Synergy Group Berhad (KLSE:PTT) Deserve A Spot On Your Watchlist?
Does PTT Synergy Group Berhad (KLSE:PTT) Deserve A Spot On Your Watchlist?

Yahoo

time29-05-2025

  • Business
  • Yahoo

Does PTT Synergy Group Berhad (KLSE:PTT) Deserve A Spot On Your Watchlist?

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up. So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like PTT Synergy Group Berhad (KLSE:PTT). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. We can see that in the last three years PTT Synergy Group Berhad grew its EPS by 8.1% per year. That's a good rate of growth, if it can be sustained. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. The good news is that PTT Synergy Group Berhad is growing revenues, and EBIT margins improved by 7.8 percentage points to 16%, over the last year. Both of which are great metrics to check off for potential growth. In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers. Check out our latest analysis for PTT Synergy Group Berhad PTT Synergy Group Berhad isn't a huge company, given its market capitalisation of RM527m. That makes it extra important to check on its balance sheet strength. Seeing insiders owning a large portion of the shares on issue is often a good sign. Their incentives will be aligned with the investors and there's less of a probability in a sudden sell-off that would impact the share price. So we're pleased to report that PTT Synergy Group Berhad insiders own a meaningful share of the business. Actually, with 38% of the company to their names, insiders are profoundly invested in the business. Those who are comforted by solid insider ownership like this should be happy, as it implies that those running the business are genuinely motivated to create shareholder value. To give you an idea, the value of insiders' holdings in the business are valued at RM198m at the current share price. So there's plenty there to keep them focused! As previously touched on, PTT Synergy Group Berhad is a growing business, which is encouraging. To add an extra spark to the fire, significant insider ownership in the company is another highlight. The combination definitely favoured by investors so consider keeping the company on a watchlist. We should say that we've discovered 2 warning signs for PTT Synergy Group Berhad (1 is a bit unpleasant!) that you should be aware of before investing here. There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of Malaysian companies which have demonstrated growth backed by significant insider holdings. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. 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.

Does PTT Synergy Group Berhad (KLSE:PTT) Deserve A Spot On Your Watchlist?
Does PTT Synergy Group Berhad (KLSE:PTT) Deserve A Spot On Your Watchlist?

Yahoo

time29-05-2025

  • Business
  • Yahoo

Does PTT Synergy Group Berhad (KLSE:PTT) Deserve A Spot On Your Watchlist?

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up. So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like PTT Synergy Group Berhad (KLSE:PTT). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. We can see that in the last three years PTT Synergy Group Berhad grew its EPS by 8.1% per year. That's a good rate of growth, if it can be sustained. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. The good news is that PTT Synergy Group Berhad is growing revenues, and EBIT margins improved by 7.8 percentage points to 16%, over the last year. Both of which are great metrics to check off for potential growth. In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers. Check out our latest analysis for PTT Synergy Group Berhad PTT Synergy Group Berhad isn't a huge company, given its market capitalisation of RM527m. That makes it extra important to check on its balance sheet strength. Seeing insiders owning a large portion of the shares on issue is often a good sign. Their incentives will be aligned with the investors and there's less of a probability in a sudden sell-off that would impact the share price. So we're pleased to report that PTT Synergy Group Berhad insiders own a meaningful share of the business. Actually, with 38% of the company to their names, insiders are profoundly invested in the business. Those who are comforted by solid insider ownership like this should be happy, as it implies that those running the business are genuinely motivated to create shareholder value. To give you an idea, the value of insiders' holdings in the business are valued at RM198m at the current share price. So there's plenty there to keep them focused! As previously touched on, PTT Synergy Group Berhad is a growing business, which is encouraging. To add an extra spark to the fire, significant insider ownership in the company is another highlight. The combination definitely favoured by investors so consider keeping the company on a watchlist. We should say that we've discovered 2 warning signs for PTT Synergy Group Berhad (1 is a bit unpleasant!) that you should be aware of before investing here. There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of Malaysian companies which have demonstrated growth backed by significant insider holdings. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. 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

Malaysia Smelting Corporation Berhad (KLSE:MSC) Is Reinvesting At Lower Rates Of Return
Malaysia Smelting Corporation Berhad (KLSE:MSC) Is Reinvesting At Lower Rates Of Return

Yahoo

time30-01-2025

  • Business
  • Yahoo

Malaysia Smelting Corporation Berhad (KLSE:MSC) Is Reinvesting At Lower Rates Of Return

To find a multi-bagger stock, what are the underlying trends we should look for in a business? 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. Although, when we looked at Malaysia Smelting Corporation Berhad (KLSE:MSC), it didn't seem to tick all of these boxes. 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 Malaysia Smelting Corporation Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.11 = RM104m ÷ (RM1.4b - RM527m) (Based on the trailing twelve months to September 2024). Thus, Malaysia Smelting Corporation Berhad has an ROCE of 11%. On its own, that's a standard return, however it's much better than the 6.8% generated by the Metals and Mining industry. See our latest analysis for Malaysia Smelting Corporation Berhad In the above chart we have measured Malaysia Smelting Corporation Berhad's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for Malaysia Smelting Corporation Berhad . When we looked at the ROCE trend at Malaysia Smelting Corporation Berhad, we didn't gain much confidence. To be more specific, ROCE has fallen from 18% over the last five years. However, given capital employed and revenue have both increased it appears that the business is currently pursuing growth, at the consequence of short term returns. If these investments prove successful, this can bode very well for long term stock performance. Even though returns on capital have fallen in the short term, we find it promising that revenue and capital employed have both increased for Malaysia Smelting Corporation Berhad. And long term investors must be optimistic going forward because the stock has returned a huge 226% to shareholders in the last five years. So while the underlying trends could already be accounted for by investors, we still think this stock is worth looking into further. On a final note, we found 2 warning signs for Malaysia Smelting Corporation Berhad (1 can't be ignored) you should be aware of. 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. Sign in to access your portfolio

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