Latest news with #RM85m
Yahoo
21-05-2025
- Business
- Yahoo
Returns Are Gaining Momentum At DFCITY Group Berhad (KLSE:DFCITY)
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So on that note, DFCITY Group Berhad (KLSE:DFCITY) looks quite promising in regards to its trends of return on capital. Our free stock report includes 3 warning signs investors should be aware of before investing in DFCITY Group 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 DFCITY Group Berhad is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.033 = RM2.1m ÷ (RM85m - RM22m) (Based on the trailing twelve months to December 2024). Thus, DFCITY Group Berhad has an ROCE of 3.3%. In absolute terms, that's a low return and it also under-performs the Basic Materials industry average of 7.0%. See our latest analysis for DFCITY Group 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 want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of DFCITY Group Berhad. Shareholders will be relieved that DFCITY Group Berhad has broken into profitability. While the business was unprofitable in the past, it's now turned things around and is earning 3.3% on its capital. On top of that, what's interesting is that the amount of capital being employed has remained steady, so the business hasn't needed to put any additional money to work to generate these higher returns. That being said, while an increase in efficiency is no doubt appealing, it'd be helpful to know if the company does have any investment plans going forward. So if you're looking for high growth, you'll want to see a business's capital employed also increasing. To sum it up, DFCITY Group Berhad is collecting higher returns from the same amount of capital, and that's impressive. Considering the stock has delivered 24% to its stockholders over the last five years, 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. If you'd like to know more about DFCITY Group Berhad, we've spotted 3 warning signs, and 1 of them shouldn't be ignored. While DFCITY Group 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-05-2025
- Business
- Yahoo
Capital Investments At Powerwell Holdings Berhad (KLSE:PWRWELL) Point To A Promising Future
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount 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. That's why when we briefly looked at Powerwell Holdings Berhad's (KLSE:PWRWELL) ROCE trend, we were very happy with what we saw. Our free stock report includes 3 warning signs investors should be aware of before investing in Powerwell Holdings Berhad. Read for free now. 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 Powerwell Holdings Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.25 = RM24m ÷ (RM183m - RM85m) (Based on the trailing twelve months to December 2024). So, Powerwell Holdings Berhad has an ROCE of 25%. That's a fantastic return and not only that, it outpaces the average of 11% earned by companies in a similar industry. See our latest analysis for Powerwell Holdings Berhad Historical performance is a great place to start when researching a stock so above you can see the gauge for Powerwell Holdings Berhad's ROCE against it's prior returns. If you'd like to look at how Powerwell Holdings Berhad has performed in the past in other metrics, you can view this free graph of Powerwell Holdings Berhad's past earnings, revenue and cash flow. Powerwell Holdings Berhad deserves to be commended in regards to it's returns. Over the past five years, ROCE has remained relatively flat at around 25% and the business has deployed 59% more capital into its operations. Returns like this are the envy of most businesses and given it has repeatedly reinvested at these rates, that's even better. You'll see this when looking at well operated businesses or favorable business models. On another note, while the change in ROCE trend might not scream for attention, it's interesting that the current liabilities have actually gone up over the last five years. This is intriguing because if current liabilities hadn't increased to 46% of total assets, this reported ROCE would probably be less than25% because total capital employed would be 25% ROCE could be even lower if current liabilities weren't 46% of total assets, because the the formula would show a larger base of total capital employed. Additionally, this high level of current liabilities isn't ideal because it means the company's suppliers (or short-term creditors) are effectively funding a large portion of the business. In summary, we're delighted to see that Powerwell Holdings Berhad has been compounding returns by reinvesting at consistently high rates of return, as these are common traits of a multi-bagger. And since the stock has risen strongly over the last five years, it appears the market might expect this trend to continue. So while the positive underlying trends may be accounted for by investors, we still think this stock is worth looking into further. One more thing: We've identified 3 warning signs with Powerwell Holdings Berhad (at least 1 which is concerning) , and understanding these would certainly be useful. 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
07-04-2025
- Business
- Yahoo
Formosa Prosonic Industries Berhad (KLSE:FPI) Is Experiencing Growth In Returns On Capital
What are the early trends we should look for to identify a stock that could multiply in value over the long term? Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So when we looked at Formosa Prosonic Industries Berhad (KLSE:FPI) 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 Formosa Prosonic Industries Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.15 = RM85m ÷ (RM669m - RM113m) (Based on the trailing twelve months to December 2024). So, Formosa Prosonic Industries Berhad has an ROCE of 15%. On its own, that's a standard return, however it's much better than the 5.1% generated by the Consumer Durables industry. Check out our latest analysis for Formosa Prosonic Industries Berhad Historical performance is a great place to start when researching a stock so above you can see the gauge for Formosa Prosonic Industries Berhad's ROCE against it's prior returns. If you'd like to look at how Formosa Prosonic Industries Berhad has performed in the past in other metrics, you can view this free graph of Formosa Prosonic Industries Berhad's past earnings, revenue and cash flow . The trends we've noticed at Formosa Prosonic Industries Berhad are quite reassuring. Over the last five years, returns on capital employed have risen substantially to 15%. The amount of capital employed has increased too, by 70%. So we're very much inspired by what we're seeing at Formosa Prosonic Industries Berhad thanks to its ability to profitably reinvest capital. One more thing to note, Formosa Prosonic Industries Berhad has decreased current liabilities to 17% of total assets over this period, which effectively reduces the amount of funding from suppliers or short-term creditors. This tells us that Formosa Prosonic Industries Berhad has grown its returns without a reliance on increasing their current liabilities, which we're very happy with. In summary, it's great to see that Formosa Prosonic Industries 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 a remarkable 149% total return over the last five years tells us that investors are expecting more good things to come in the future. Therefore, we think it would be worth your time to check if these trends are going to continue. If you'd like to know about the risks facing Formosa Prosonic Industries Berhad, we've discovered 2 warning signs that you should be aware of. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and 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. Sign in to access your portfolio
Yahoo
28-01-2025
- Business
- Yahoo
We Ran A Stock Scan For Earnings Growth And UMS Holdings Berhad (KLSE:UMS) Passed With Ease
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. 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. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. In contrast to all that, many investors prefer to focus on companies like UMS Holdings Berhad (KLSE:UMS), which has not only revenues, but also profits. While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. Check out our latest analysis for UMS Holdings Berhad Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Impressively, UMS Holdings Berhad has grown EPS by 25% per year, compound, in the last three years. If growth like this continues on into the future, then shareholders will have plenty to smile about. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. While UMS Holdings Berhad did well to grow revenue over the last year, EBIT margins were dampened at the same time. If EBIT margins are able to stay balanced and this revenue growth continues, then we should see brighter days ahead. In the chart below, you can see how the company has grown earnings and revenue, over time. To see the actual numbers, click on the chart. UMS Holdings Berhad isn't a huge company, given its market capitalisation of RM85m. That makes it extra important to check on its balance sheet strength. 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 those who are interested in UMS Holdings Berhad will be delighted to know that insiders have shown their belief, holding a large proportion of the company's shares. To be exact, company insiders hold 58% of the company, so their decisions have a significant impact on their investments. Intuition will tell you this is a good sign because it suggests they will be incentivised to build value for shareholders over the long term. Of course, UMS Holdings Berhad is a very small company, with a market cap of only RM85m. So despite a large proportional holding, insiders only have RM50m worth of stock. That might not be a huge sum but it should be enough to keep insiders motivated! It means a lot to see insiders invested in the business, but shareholders may be wondering if remuneration policies are in their best interest. A brief analysis of the CEO compensation suggests they are. Our analysis has discovered that the median total compensation for the CEOs of companies like UMS Holdings Berhad with market caps under RM876m is about RM482k. The CEO of UMS Holdings Berhad was paid just RM8.5k in total compensation for the year ending September 2023. You could consider this pay as somewhat symbolic, which suggests the CEO does not need a lot of compensation to stay motivated. While the level of CEO compensation shouldn't be the biggest factor in how the company is viewed, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. Generally, arguments can be made that reasonable pay levels attest to good decision-making. If you believe that share price follows earnings per share you should definitely be delving further into UMS Holdings Berhad's strong EPS growth. If you need more convincing beyond that EPS growth rate, don't forget about the reasonable remuneration and the high insider ownership. This may only be a fast rundown, but the key takeaway is that UMS Holdings Berhad is worth keeping an eye on. We should say that we've discovered 2 warning signs for UMS Holdings Berhad that you should be aware of before investing here. While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in MY with promising growth potential and insider confidence. 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
