Latest news with #RM9.67m
Yahoo
03-04-2025
- Business
- Yahoo
Jati Tinggi Group Berhad Full Year 2024 Earnings: EPS: RM0.025 (vs RM0.012 in FY 2023)
Revenue: RM128.0m (up 11% from FY 2023). Net income: RM9.67m (up 146% from FY 2023). Profit margin: 7.6% (up from 3.4% in FY 2023). The increase in margin was driven by higher revenue. EPS: RM0.025 (up from RM0.012 in FY 2023). This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. All figures shown in the chart above are for the trailing 12 month (TTM) period Jati Tinggi Group Berhad shares are down 2.8% from a week ago. Before we wrap up, we've discovered 3 warning signs for Jati Tinggi Group Berhad (1 is a bit concerning!) that you should be aware of. 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
28-01-2025
- Business
- Yahoo
Why Jati Tinggi Group Berhad's (KLSE:JTGROUP) Earnings Are Weaker Than They Seem
Strong earnings weren't enough to please Jati Tinggi Group Berhad's (KLSE:JTGROUP) shareholders over the last week. We did some digging and found some underlying numbers that are worrying. View our latest analysis for Jati Tinggi Group 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. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. 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. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. Jati Tinggi Group Berhad has an accrual ratio of 0.61 for the year to November 2024. Statistically speaking, that's a real negative for future earnings. To wit, the company did not generate one whit of free cashflow in that time. Over the last year it actually had negative free cash flow of RM24m, in contrast to the aforementioned profit of RM9.67m. It's worth noting that Jati Tinggi Group Berhad generated positive FCF of RM2.7m a year ago, so at least they've done it in the past. Unfortunately for shareholders, the company has also been issuing new shares, diluting their share of future earnings. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Jati Tinggi Group Berhad. To understand the value of a company's earnings growth, it is imperative to consider any dilution of shareholders' interests. In fact, Jati Tinggi Group Berhad increased the number of shares on issue by 39,080% over the last twelve months by issuing new shares. 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 Jati Tinggi Group Berhad's historical EPS growth by clicking on this link. Jati Tinggi Group Berhad has improved its profit over the last three years, with an annualized gain of 34% in that time. In contrast, earnings per share were actually down by 100% per year, in the exact same period. And the 146% profit boost in the last year certainly seems impressive at first glance. On the other hand, earnings per share are only up 104% in that time. Therefore, one can observe that the dilution is having a fairly profound effect on shareholder returns. Changes in the share price do tend to reflect changes in earnings per share, in the long run. So it will certainly be a positive for shareholders if Jati Tinggi Group Berhad can grow EPS persistently. But on the other hand, we'd be far less excited to learn profit (but not EPS) was improving. For that reason, you could say that EPS is more important that net income in the long run, assuming the goal is to assess whether a company's share price might grow. In conclusion, Jati Tinggi Group Berhad has weak cashflow relative to earnings, which indicates lower quality earnings, and the dilution means its earnings per share growth is weaker than its profit growth. On reflection, the above-mentioned factors give us the strong impression that Jati Tinggi Group Berhad'sunderlying earnings power is not as good as it might seem, based on the statutory profit numbers. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. To that end, you should learn about the 4 warning signs we've spotted with Jati Tinggi Group Berhad (including 2 which are potentially serious). Our examination of Jati Tinggi Group 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. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. 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
