Latest news with #RM91m
Yahoo
06-05-2025
- Business
- Yahoo
Companies Like Compugates Holdings Berhad (KLSE:COMPUGT) Are In A Position To Invest In Growth
Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the right price. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly. So, the natural question for Compugates Holdings Berhad (KLSE:COMPUGT) shareholders is whether they should be concerned by its rate of cash burn. In this report, we will consider the company's annual negative free cash flow, henceforth referring to it as the 'cash burn'. Let's start with an examination of the business' cash, relative to its cash burn. 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. A company's cash runway is the amount of time it would take to burn through its cash reserves at its current cash burn rate. When Compugates Holdings Berhad last reported its December 2024 balance sheet in April 2025, it had zero debt and cash worth RM6.7m. In the last year, its cash burn was RM3.8m. So it had a cash runway of approximately 21 months from December 2024. While that cash runway isn't too concerning, sensible holders would be peering into the distance, and considering what happens if the company runs out of cash. You can see how its cash balance has changed over time in the image below. View our latest analysis for Compugates Holdings Berhad We reckon the fact that Compugates Holdings Berhad managed to shrink its cash burn by 50% over the last year is rather encouraging. And considering that its operating revenue gained 42% during that period, that's great to see. It seems to be growing nicely. Of course, we've only taken a quick look at the stock's growth metrics, here. This graph of historic revenue growth shows how Compugates Holdings Berhad is building its business over time. We are certainly impressed with the progress Compugates Holdings Berhad has made over the last year, but it is also worth considering how costly it would be if it wanted to raise more cash to fund faster growth. Companies can raise capital through either debt or equity. Many companies end up issuing new shares to fund future growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate). Compugates Holdings Berhad has a market capitalisation of RM91m and burnt through RM3.8m last year, which is 4.2% of the company's market value. Given that is a rather small percentage, it would probably be really easy for the company to fund another year's growth by issuing some new shares to investors, or even by taking out a loan. It may already be apparent to you that we're relatively comfortable with the way Compugates Holdings Berhad is burning through its cash. For example, we think its revenue growth suggests that the company is on a good path. Its cash runway wasn't quite as good, but was still rather encouraging! After taking into account the various metrics mentioned in this report, we're pretty comfortable with how the company is spending its cash. Separately, we looked at different risks affecting the company and spotted 3 warning signs for Compugates Holdings Berhad (of which 2 don't sit too well with us!) you should know about. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies, and this list of stocks growth stocks (according to analyst forecasts) 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
21-04-2025
- Business
- Yahoo
There Are Reasons To Feel Uneasy About CTOS Digital Berhad's (KLSE:CTOS) Returns On Capital
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing 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. Having said that, from a first glance at CTOS Digital Berhad (KLSE:CTOS) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look. Our free stock report includes 1 warning sign investors should be aware of before investing in CTOS Digital Berhad. Read for free now. 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 CTOS Digital Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.12 = RM91m ÷ (RM873m - RM125m) (Based on the trailing twelve months to December 2024). So, CTOS Digital Berhad has an ROCE of 12%. That's a relatively normal return on capital, and it's around the 14% generated by the Professional Services industry. View our latest analysis for CTOS Digital Berhad Above you can see how the current ROCE for CTOS Digital 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 CTOS Digital Berhad . In terms of CTOS Digital Berhad's historical ROCE movements, the trend isn't fantastic. To be more specific, ROCE has fallen from 46% over the last five years. Although, given both revenue and the amount of assets employed in the business have increased, it could suggest the company is investing in growth, and the extra capital has led to a short-term reduction in ROCE. And if the increased capital generates additional returns, the business, and thus shareholders, will benefit in the long run. On a side note, CTOS Digital Berhad has done well to pay down its current liabilities to 14% of total assets. That could partly explain why the ROCE has dropped. What's more, this can reduce some aspects of risk to the business because now the company's suppliers or short-term creditors are funding less of its operations. Since the business is basically funding more of its operations with it's own money, you could argue this has made the business less efficient at generating ROCE. In summary, despite lower returns in the short term, we're encouraged to see that CTOS Digital Berhad is reinvesting for growth and has higher sales as a result. And there could be an opportunity here if other metrics look good too, because the stock has declined 22% in the last three years. As a result, we'd recommend researching this stock further to uncover what other fundamentals of the business can show us. On a final note, we've found 1 warning sign for CTOS Digital 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.
Yahoo
18-04-2025
- Business
- Yahoo
There's Been No Shortage Of Growth Recently For Sunmow Holding Berhad's (KLSE:SUNMOW) Returns On Capital
What trends should we look for it we want to identify stocks that can 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. 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, Sunmow Holding Berhad (KLSE:SUNMOW) looks quite promising in regards to its trends of return on capital. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. 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 Sunmow Holding Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.13 = RM8.7m ÷ (RM160m - RM91m) (Based on the trailing twelve months to December 2024). Thus, Sunmow Holding Berhad has an ROCE of 13%. In absolute terms, that's a satisfactory return, but compared to the Construction industry average of 10.0% it's much better. See our latest analysis for Sunmow Holding Berhad Historical performance is a great place to start when researching a stock so above you can see the gauge for Sunmow Holding Berhad's ROCE against it's prior returns. If you'd like to look at how Sunmow Holding Berhad has performed in the past in other metrics, you can view this free graph of Sunmow Holding Berhad's past earnings, revenue and cash flow. The trends we've noticed at Sunmow Holding Berhad are quite reassuring. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 13%. Basically the business is earning more per dollar of capital invested and in addition to that, 121% more capital is being employed now too. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers. Another thing to note, Sunmow Holding Berhad has a high ratio of current liabilities to total assets of 57%. This can bring about some risks because the company is basically operating with a rather large reliance on its suppliers or other sorts of short-term creditors. While it's not necessarily a bad thing, it can be beneficial if this ratio is lower. 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 Sunmow Holding Berhad has. And with a respectable 38% awarded to those who held the stock over the last three years, you could argue that these developments are starting to get the attention they deserve. Therefore, we think it would be worth your time to check if these trends are going to continue. One final note, you should learn about the 4 warning signs we've spotted with Sunmow Holding Berhad (including 2 which are a bit concerning) . While Sunmow Holding 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
16-04-2025
- Business
- Yahoo
The Returns At Amtel Holdings Berhad (KLSE:AMTEL) Aren't Growing
What trends should we look for it we want to identify stocks that can multiply in value over the long term? 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. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. However, after investigating Amtel Holdings Berhad (KLSE:AMTEL), we don't think it's current trends fit the mold of a multi-bagger. We've discovered 1 warning sign about Amtel Holdings Berhad. View them for free. 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 Amtel Holdings Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.097 = RM7.6m ÷ (RM91m - RM13m) (Based on the trailing twelve months to November 2024). Thus, Amtel Holdings Berhad has an ROCE of 9.7%. In absolute terms, that's a low return and it also under-performs the Electronic industry average of 12%. See our latest analysis for Amtel Holdings 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're interested in investigating Amtel Holdings Berhad's past further, check out this free graph covering Amtel Holdings Berhad's past earnings, revenue and cash flow. In terms of Amtel Holdings Berhad's historical ROCE trend, it doesn't exactly demand attention. Over the past five years, ROCE has remained relatively flat at around 9.7% and the business has deployed 55% more capital into its operations. Given the company has increased the amount of capital employed, it appears the investments that have been made simply don't provide a high return on capital. As we've seen above, Amtel Holdings Berhad's returns on capital haven't increased but it is reinvesting in the business. And with the stock having returned a mere 11% in the last five years to shareholders, you could argue that they're aware of these lackluster trends. So if you're looking for a multi-bagger, the underlying trends indicate you may have better chances elsewhere. On a separate note, we've found 1 warning sign for Amtel Holdings Berhad you'll probably want to know about. 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
21-02-2025
- Business
- Yahoo
Does Resintech Berhad (KLSE:RESINTC) Deserve A Spot On Your Watchlist?
Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone 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. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Resintech Berhad (KLSE:RESINTC). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Resintech Berhad with the means to add long-term value to shareholders. See our latest analysis for Resintech Berhad Even when EPS earnings per share (EPS) growth is unexceptional, company value can be created if this rate is sustained each year. So it's easy to see why many investors focus in on EPS growth. Resintech Berhad's EPS shot up from RM0.022 to RM0.036; a result that's bound to keep shareholders happy. That's a impressive gain of 67%. 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 Resintech Berhad is growing revenues, and EBIT margins improved by 3.8 percentage points to 8.5%, over the last year. Ticking those two boxes is a good sign of growth, in our book. 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. Since Resintech Berhad is no giant, with a market capitalisation of RM131m, you should definitely check its cash and debt before getting too excited about its prospects. 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 those who are interested in Resintech 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 70% of the company, so their decisions have a significant impact on their investments. This makes it apparent they will be incentivised to plan for the long term - a positive for shareholders with a sit and hold strategy. With that sort of holding, insiders have about RM91m riding on the stock, at current prices. That should be more than enough to keep them focussed on creating shareholder value! You can't deny that Resintech Berhad has grown its earnings per share at a very impressive rate. That's attractive. This EPS growth rate is something the company should be proud of, and so it's no surprise that insiders are holding on to a considerable chunk of shares. On the balance of its merits, solid EPS growth and company insiders who are aligned with the shareholders would indicate a business that is worthy of further research. We should say that we've discovered 1 warning sign for Resintech Berhad 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.
