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Yahoo
16-05-2025
- Business
- Yahoo
The Return Trends At Globaltec Formation Berhad (KLSE:GLOTEC) Look Promising
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding 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. With that in mind, we've noticed some promising trends at Globaltec Formation Berhad (KLSE:GLOTEC) so let's look a bit deeper. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. 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 Globaltec Formation Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.031 = RM11m ÷ (RM424m - RM72m) (Based on the trailing twelve months to December 2024). Thus, Globaltec Formation Berhad has an ROCE of 3.1%. Ultimately, that's a low return and it under-performs the Electronic industry average of 12%. Check out our latest analysis for Globaltec Formation Berhad Historical performance is a great place to start when researching a stock so above you can see the gauge for Globaltec Formation Berhad's ROCE against it's prior returns. If you'd like to look at how Globaltec Formation Berhad has performed in the past in other metrics, you can view this free graph of Globaltec Formation Berhad's past earnings, revenue and cash flow. We're delighted to see that Globaltec Formation Berhad is reaping rewards from its investments and is now generating some pre-tax profits. About five years ago the company was generating losses but things have turned around because it's now earning 3.1% on its capital. In addition to that, Globaltec Formation Berhad is employing 22% more capital than previously which is expected of a company that's trying to break into profitability. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, both common traits of a multi-bagger. To the delight of most shareholders, Globaltec Formation Berhad has now broken into profitability. And investors seem to expect more of this going forward, since the stock has rewarded shareholders with a 53% return over the last five years. Therefore, we think it would be worth your time to check if these trends are going to continue. Globaltec Formation Berhad does have some risks though, and we've spotted 1 warning sign for Globaltec Formation Berhad that you might be interested in. While Globaltec Formation 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.
Yahoo
25-03-2025
- Business
- Yahoo
Alpha IVF Group Berhad (KLSE:ALPHA) Knows How To Allocate Capital Effectively
To find a multi-bagger stock, what are the underlying trends we should look for in a business? 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. Speaking of which, we noticed some great changes in Alpha IVF Group Berhad's (KLSE:ALPHA) returns on capital, so let's have a 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. The formula for this calculation on Alpha IVF Group Berhad is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.34 = RM72m ÷ (RM233m - RM22m) (Based on the trailing twelve months to November 2024). Therefore, Alpha IVF Group Berhad has an ROCE of 34%. That's a fantastic return and not only that, it outpaces the average of 9.9% earned by companies in a similar industry. See our latest analysis for Alpha IVF Group Berhad Above you can see how the current ROCE for Alpha IVF Group Berhad compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Alpha IVF Group Berhad . Investors would be pleased with what's happening at Alpha IVF Group Berhad. Over the last four years, returns on capital employed have risen substantially to 34%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 226%. So we're very much inspired by what we're seeing at Alpha IVF Group Berhad thanks to its ability to profitably reinvest capital. On a related note, the company's ratio of current liabilities to total assets has decreased to 9.5%, which basically reduces it's funding from the likes of short-term creditors or suppliers. So shareholders would be pleased that the growth in returns has mostly come from underlying business performance. To sum it up, Alpha IVF Group Berhad has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. Since the stock has only returned 3.0% to shareholders over the last year, the promising fundamentals may not be recognized yet by investors. So exploring more about this stock could uncover a good opportunity, if the valuation and other metrics stack up. If you'd like to know more about Alpha IVF Group Berhad, we've spotted 2 warning signs, and 1 of them makes us a bit uncomfortable. 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
24-03-2025
- Business
- Yahoo
Paragon Globe Berhad (KLSE:PGLOBE) Is Doing The Right Things To Multiply Its Share Price
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So on that note, Paragon Globe Berhad (KLSE:PGLOBE) looks quite promising in regards to its trends of return on capital. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Paragon Globe Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.11 = RM72m ÷ (RM860m - RM224m) (Based on the trailing twelve months to December 2024). Therefore, Paragon Globe Berhad has an ROCE of 11%. By itself that's a normal return on capital and it's in line with the industry's average returns of 11%. Check out our latest analysis for Paragon Globe Berhad While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you'd like to look at how Paragon Globe Berhad has performed in the past in other metrics, you can view this free graph of Paragon Globe Berhad's past earnings, revenue and cash flow. We like the trends that we're seeing from Paragon Globe Berhad. Over the last five years, returns on capital employed have risen substantially to 11%. The amount of capital employed has increased too, by 136%. So we're very much inspired by what we're seeing at Paragon Globe Berhad thanks to its ability to profitably reinvest capital. For the record though, there was a noticeable increase in the company's current liabilities over the period, so we would attribute some of the ROCE growth to that. Essentially the business now has suppliers or short-term creditors funding about 26% of its operations, which isn't ideal. Keep an eye out for future increases because when the ratio of current liabilities to total assets gets particularly high, this can introduce some new risks for the business. In summary, it's great to see that Paragon Globe Berhad can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. Therefore, we think it would be worth your time to check if these trends are going to continue. While Paragon Globe Berhad looks impressive, no company is worth an infinite price. The intrinsic value infographic for PGLOBE helps visualize whether it is currently trading for a fair price. While Paragon Globe 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
Yahoo
24-03-2025
- Business
- Yahoo
Paragon Globe Berhad (KLSE:PGLOBE) Is Doing The Right Things To Multiply Its Share Price
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So on that note, Paragon Globe Berhad (KLSE:PGLOBE) looks quite promising in regards to its trends of return on capital. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Paragon Globe Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.11 = RM72m ÷ (RM860m - RM224m) (Based on the trailing twelve months to December 2024). Therefore, Paragon Globe Berhad has an ROCE of 11%. By itself that's a normal return on capital and it's in line with the industry's average returns of 11%. Check out our latest analysis for Paragon Globe Berhad While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you'd like to look at how Paragon Globe Berhad has performed in the past in other metrics, you can view this free graph of Paragon Globe Berhad's past earnings, revenue and cash flow. We like the trends that we're seeing from Paragon Globe Berhad. Over the last five years, returns on capital employed have risen substantially to 11%. The amount of capital employed has increased too, by 136%. So we're very much inspired by what we're seeing at Paragon Globe Berhad thanks to its ability to profitably reinvest capital. For the record though, there was a noticeable increase in the company's current liabilities over the period, so we would attribute some of the ROCE growth to that. Essentially the business now has suppliers or short-term creditors funding about 26% of its operations, which isn't ideal. Keep an eye out for future increases because when the ratio of current liabilities to total assets gets particularly high, this can introduce some new risks for the business. In summary, it's great to see that Paragon Globe Berhad can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. Therefore, we think it would be worth your time to check if these trends are going to continue. While Paragon Globe Berhad looks impressive, no company is worth an infinite price. The intrinsic value infographic for PGLOBE helps visualize whether it is currently trading for a fair price. While Paragon Globe 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
