Latest news with #RM70m
Yahoo
01-05-2025
- Business
- Yahoo
Returns Are Gaining Momentum At Versatile Creative Berhad (KLSE:VERSATL)
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding 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. So when we looked at Versatile Creative Berhad (KLSE:VERSATL) and its trend of ROCE, we really liked what we saw. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. To calculate this metric for Versatile Creative Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.075 = RM8.1m ÷ (RM179m - RM70m) (Based on the trailing twelve months to December 2024). Thus, Versatile Creative Berhad has an ROCE of 7.5%. On its own, that's a low figure but it's around the 8.3% average generated by the Packaging industry. View our latest analysis for Versatile Creative Berhad Historical performance is a great place to start when researching a stock so above you can see the gauge for Versatile Creative Berhad's ROCE against it's prior returns. If you're interested in investigating Versatile Creative Berhad's past further, check out this free graph covering Versatile Creative Berhad's past earnings, revenue and cash flow. The fact that Versatile Creative Berhad is now generating some pre-tax profits from its prior investments is very encouraging. About five years ago the company was generating losses but things have turned around because it's now earning 7.5% on its capital. In addition to that, Versatile Creative Berhad is employing 116% more capital than previously which is expected of a company that's trying to break into profitability. This can tell us that the company has plenty of reinvestment opportunities that are able to generate higher returns. In summary, it's great to see that Versatile Creative Berhad has managed to break into profitability and is continuing to reinvest in its business. Since the stock has returned a staggering 189% to shareholders over the last five years, it looks like investors are recognizing these changes. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. On a final note, we've found 1 warning sign for Versatile Creative Berhad that we think 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
Yahoo
18-04-2025
- Business
- Yahoo
The Returns On Capital At UWC Berhad (KLSE:UWC) Don't Inspire Confidence
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. However, after briefly looking over the numbers, we don't think UWC Berhad (KLSE:UWC) has the makings of a multi-bagger going forward, but let's have a look at why that may be. Our free stock report includes 2 warning signs investors should be aware of before investing in UWC Berhad. Read for free now. 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 UWC Berhad is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.065 = RM31m ÷ (RM556m - RM70m) (Based on the trailing twelve months to January 2025). Thus, UWC Berhad has an ROCE of 6.5%. In absolute terms, that's a low return and it also under-performs the Machinery industry average of 8.2%. View our latest analysis for UWC Berhad In the above chart we have measured UWC 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 UWC Berhad . When we looked at the ROCE trend at UWC Berhad, we didn't gain much confidence. To be more specific, ROCE has fallen from 34% 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. While returns have fallen for UWC Berhad in recent times, we're encouraged to see that sales are growing and that the business is reinvesting in its operations. And the stock has followed suit returning a meaningful 68% to shareholders over 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. If you want to know some of the risks facing UWC Berhad we've found 2 warning signs (1 can't be ignored!) that you should be aware of before investing here. While UWC Berhad isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. 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
14-04-2025
- Business
- Yahoo
Here's Why We Think Zecon Berhad (KLSE:ZECON) Is Well Worth Watching
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. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Zecon Berhad (KLSE:ZECON). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. 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. Investors and investment funds chase profits, and that means share prices tend rise with positive earnings per share (EPS) outcomes. Which is why EPS growth is looked upon so favourably. Commendations have to be given in seeing that Zecon Berhad grew its EPS from RM0.014 to RM0.38, in one short year. Even though that growth rate may not be repeated, that looks like a breakout improvement. It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. Unfortunately, Zecon Berhad's revenue dropped 22% last year, but the silver lining is that EBIT margins improved from 76% to 192%. That falls short of ideal. The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers. View our latest analysis for Zecon Berhad Since Zecon Berhad is no giant, with a market capitalisation of RM70m, you should definitely check its cash and debt before getting too excited about its prospects. Theory would suggest that it's an encouraging sign to see high insider ownership of a company, since it ties company performance directly to the financial success of its management. So as you can imagine, the fact that Zecon Berhad insiders own a significant number of shares certainly is appealing. In fact, they own 78% of the company, so they will share in the same delights and challenges experienced by the ordinary shareholders. This makes it apparent they will be incentivised to plan for the long term - a positive for shareholders with a sit and hold strategy. Of course, Zecon Berhad is a very small company, with a market cap of only RM70m. So this large proportion of shares owned by insiders only amounts to RM54m. That might not be a huge sum but it should be enough to keep insiders motivated! Zecon Berhad's earnings per share growth have been climbing higher at an appreciable rate. This level of EPS growth does wonders for attracting investment, and the large insider investment in the company is just the cherry on top. At times fast EPS growth is a sign the business has reached an inflection point, so there's a potential opportunity to be had here. So at the surface level, Zecon Berhad is worth putting on your watchlist; after all, shareholders do well when the market underestimates fast growing companies. We should say that we've discovered 3 warning signs for Zecon Berhad (2 make us uncomfortable!) that you should be aware of before investing here. Although Zecon Berhad certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of Malaysian companies that not only boast of strong growth but have strong insider backing. 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
Yahoo
10-03-2025
- Business
- Yahoo
Under The Bonnet, Jati Tinggi Group Berhad's (KLSE:JTGROUP) Returns Look Impressive
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing 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. So when we looked at the ROCE trend of Jati Tinggi Group Berhad (KLSE:JTGROUP) we really liked what we saw. 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 Jati Tinggi Group Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.28 = RM19m ÷ (RM137m - RM70m) (Based on the trailing twelve months to November 2024). So, Jati Tinggi Group Berhad has an ROCE of 28%. That's a fantastic return and not only that, it outpaces the average of 8.9% earned by companies in a similar industry. Check out our latest analysis for Jati Tinggi Group Berhad Historical performance is a great place to start when researching a stock so above you can see the gauge for Jati Tinggi Group Berhad's ROCE against it's prior returns. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of Jati Tinggi Group Berhad. The trends we've noticed at Jati Tinggi Group Berhad are quite reassuring. Over the last five years, returns on capital employed have risen substantially to 28%. Basically the business is earning more per dollar of capital invested and in addition to that, 253% more capital is being employed now too. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed. In another part of our analysis, we noticed that the company's ratio of current liabilities to total assets decreased to 51%, which broadly means the business is relying less on its suppliers or short-term creditors to fund its operations. 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. Nevertheless, there are some potential risks the company is bearing with current liabilities that high, so just keep that in mind. A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what Jati Tinggi Group Berhad has. Considering the stock has delivered 4.8% to its stockholders over the last year, it may be fair to think that investors aren't fully aware of the promising trends yet. So with that in mind, we think the stock deserves further research. One final note, you should learn about the 3 warning signs we've spotted with Jati Tinggi Group Berhad (including 1 which can't be ignored) . If you want to search for more stocks that have been earning high returns, check out this free list of stocks with solid balance sheets that are also earning high 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
27-02-2025
- Business
- Yahoo
The Return Trends At Marine & General Berhad (KLSE:M&G) Look Promising
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. So on that note, Marine & General Berhad (KLSE:M&G) looks quite promising in regards to its trends of return on capital. 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. To calculate this metric for Marine & General Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.099 = RM70m ÷ (RM842m - RM140m) (Based on the trailing twelve months to October 2024). So, Marine & General Berhad has an ROCE of 9.9%. Ultimately, that's a low return and it under-performs the Energy Services industry average of 14%. See our latest analysis for Marine & General Berhad Historical performance is a great place to start when researching a stock so above you can see the gauge for Marine & General Berhad's ROCE against it's prior returns. If you'd like to look at how Marine & General Berhad has performed in the past in other metrics, you can view this free graph of Marine & General Berhad's past earnings, revenue and cash flow. We're delighted to see that Marine & General Berhad is reaping rewards from its investments and has now broken into profitability. The company now earns 9.9% on its capital, because four years ago it was incurring losses. Interestingly, the capital employed by the business has remained relatively flat, so these higher returns are either from prior investments paying off or increased efficiencies. So while we're happy that the business is more efficient, just keep in mind that could mean that going forward the business is lacking areas to invest internally for growth. So if you're looking for high growth, you'll want to see a business's capital employed also increasing. In summary, we're delighted to see that Marine & General Berhad has been able to increase efficiencies and earn higher rates of return on the same amount of capital. Since the stock has returned a staggering 275% to shareholders over the last five years, it looks like investors are recognizing these changes. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist. Marine & General Berhad does come with some risks though, we found 3 warning signs in our investment analysis, and 1 of those doesn't sit too well with us... While Marine & General 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.
