Latest news with #SimplyW
Yahoo
30-05-2025
- Business
- Yahoo
CSC Steel Holdings Berhad (KLSE:CSCSTEL) Has Announced That Its Dividend Will Be Reduced To MYR0.07
CSC Steel Holdings Berhad (KLSE:CSCSTEL) is reducing its dividend from last year's comparable payment to MYR0.07 on the 10th of July. This means the annual payment is 5.9% of the current stock price, which is above the average for the industry. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. A big dividend yield for a few years doesn't mean much if it can't be sustained. The last dividend was quite easily covered by CSC Steel Holdings Berhad's earnings. This means that a large portion of its earnings are being retained to grow the business. The next year is set to see EPS grow by 26.9%. If the dividend continues along recent trends, we estimate the payout ratio will be 55%, which is in the range that makes us comfortable with the sustainability of the dividend. See our latest analysis for CSC Steel Holdings Berhad The company has a long dividend track record, but it doesn't look great with cuts in the past. The dividend has gone from an annual total of MYR0.03 in 2015 to the most recent total annual payment of MYR0.07. This means that it has been growing its distributions at 8.8% per annum over that time. We like to see dividends have grown at a reasonable rate, but with at least one substantial cut in the payments, we're not certain this dividend stock would be ideal for someone intending to live on the income. With a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. CSC Steel Holdings Berhad hasn't seen much change in its earnings per share over the last five years. The company has been growing at a pretty soft 1.5% per annum, and is paying out quite a lot of its earnings to shareholders. While this isn't necessarily a negative, it definitely signals that dividend growth could be constrained in the future unless earnings start to pick up again. Overall, we think that CSC Steel Holdings Berhad could make a reasonable income stock, even though it did cut the dividend this year. The payout ratio looks good, but unfortunately the company's dividend track record isn't stellar. The dividend looks okay, but there have been some issues in the past, so we would be a little bit cautious. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For example, we've picked out 1 warning sign for CSC Steel Holdings Berhad that investors should know about before committing capital to this stock. Is CSC Steel Holdings Berhad not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. 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
08-04-2025
- Business
- Yahoo
OpenSys (M) Berhad (KLSE:OPENSYS) Is Reinvesting At Lower Rates Of Return
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing 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. Having said that, from a first glance at OpenSys (M) Berhad (KLSE:OPENSYS) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look. 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. To calculate this metric for OpenSys (M) Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.15 = RM16m ÷ (RM127m - RM21m) (Based on the trailing twelve months to December 2024). Therefore, OpenSys (M) Berhad has an ROCE of 15%. On its own, that's a standard return, however it's much better than the 8.2% generated by the Tech industry. View our latest analysis for OpenSys (M) 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 OpenSys (M) Berhad . In terms of OpenSys (M) Berhad's historical ROCE movements, the trend isn't fantastic. Over the last five years, returns on capital have decreased to 15% from 20% five years ago. However it looks like OpenSys (M) Berhad might be reinvesting for long term growth because while capital employed has increased, the company's sales haven't changed much in the last 12 months. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line. To conclude, we've found that OpenSys (M) Berhad is reinvesting in the business, but returns have been falling. Although the market must be expecting these trends to improve because the stock has gained 54% over the last five years. But if the trajectory of these underlying trends continue, we think the likelihood of it being a multi-bagger from here isn't high. OpenSys (M) Berhad does have some risks though, and we've spotted 2 warning signs for OpenSys (M) Berhad that you might be interested in. While OpenSys (M) 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.
Yahoo
25-03-2025
- Business
- Yahoo
Cepatwawasan Group Berhad (KLSE:CEPAT) Is Increasing Its Dividend To MYR0.05
Cepatwawasan Group Berhad's (KLSE:CEPAT) periodic dividend will be increasing on the 29th of April to MYR0.05, with investors receiving 25% more than last year's MYR0.04. This will take the annual payment to 5.6% of the stock price, which is above what most companies in the industry pay. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. Before making this announcement, Cepatwawasan Group Berhad was easily earning enough to cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business. If the trend of the last few years continues, EPS will grow by 120.2% over the next 12 months. If the dividend continues along recent trends, we estimate the payout ratio will be 33%, which is in the range that makes us comfortable with the sustainability of the dividend. View our latest analysis for Cepatwawasan Group Berhad While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. Since 2015, the annual payment back then was MYR0.02, compared to the most recent full-year payment of MYR0.04. This means that it has been growing its distributions at 7.2% per annum over that time. A reasonable rate of dividend growth is good to see, but we're wary that the dividend history is not as solid as we'd like, having been cut at least once. Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. We are encouraged to see that Cepatwawasan Group Berhad has grown earnings per share at 120% per year over the past five years. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock. Overall, a dividend increase is always good, and we think that Cepatwawasan Group Berhad is a strong income stock thanks to its track record and growing earnings. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All of these factors considered, we think this has solid potential as a dividend stock. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. As an example, we've identified 2 warning signs for Cepatwawasan Group Berhad that you should be aware of before investing. Is Cepatwawasan Group Berhad not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. 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.
