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Yahoo
04-05-2025
- Business
- Yahoo
Returns On Capital Signal Tricky Times Ahead For TMC Life Sciences Berhad (KLSE:TMCLIFE)
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. Having said that, from a first glance at TMC Life Sciences Berhad (KLSE:TMCLIFE) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look. 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. 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. To calculate this metric for TMC Life Sciences Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.02 = RM21m ÷ (RM1.1b - RM107m) (Based on the trailing twelve months to December 2024). Therefore, TMC Life Sciences Berhad has an ROCE of 2.0%. In absolute terms, that's a low return and it also under-performs the Healthcare industry average of 9.9%. View our latest analysis for TMC Life Sciences 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 TMC Life Sciences Berhad. On the surface, the trend of ROCE at TMC Life Sciences Berhad doesn't inspire confidence. Around five years ago the returns on capital were 4.1%, but since then they've fallen to 2.0%. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. 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 TMC Life Sciences Berhad is reinvesting in the business, but returns have been falling. And in the last five years, the stock has given away 12% so the market doesn't look too hopeful on these trends strengthening any time soon. Therefore based on the analysis done in this article, we don't think TMC Life Sciences Berhad has the makings of a multi-bagger. If you want to continue researching TMC Life Sciences Berhad, you might be interested to know about the 2 warning signs that our analysis has discovered. While TMC Life Sciences 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
15-04-2025
- Business
- Yahoo
Investing in Tropicana Corporation Berhad (KLSE:TROP) five years ago would have delivered you a 37% gain
It hasn't been the best quarter for Tropicana Corporation Berhad (KLSE:TROP) shareholders, since the share price has fallen 12% in that time. On the other hand the returns over the last half decade have not been bad. It's good to see the share price is up 37% in that time, better than its market return of 31%. So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns. We've discovered 1 warning sign about Tropicana Corporation Berhad. View them for free. Because Tropicana Corporation Berhad made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually desire strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size. For the last half decade, Tropicana Corporation Berhad can boast revenue growth at a rate of 6.7% per year. That's a pretty good long term growth rate. While the share price has beat the market, compounding at 7% yearly, over five years, there's certainly some potential that the market hasn't fully considered the growth track record. The key question is whether revenue growth will slow down, and if so, how quickly. There's no doubt that it can be difficult to value pre-profit companies. The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail). Take a more thorough look at Tropicana Corporation Berhad's financial health with this free report on its balance sheet. We regret to report that Tropicana Corporation Berhad shareholders are down 11% for the year. Unfortunately, that's worse than the broader market decline of 6.2%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 7% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for Tropicana Corporation Berhad you should be aware of. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges. 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
05-04-2025
- Business
- Yahoo
Costamare (NYSE:CMRE) Has Announced A Dividend Of $0.115
The board of Costamare Inc. (NYSE:CMRE) has announced that it will pay a dividend on the 6th of May, with investors receiving $0.115 per share. This payment means the dividend yield will be 5.1%, which is below the average for the industry. While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. Costamare's stock price has reduced by 31% in the last 3 months, which is not ideal for investors and can explain a sharp increase in the dividend yield. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If it is predictable over a long period, even low dividend yields can be attractive. However, Costamare's earnings easily cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business. Over the next year, EPS is forecast to expand by 37.5%. If the dividend continues on this path, the payout ratio could be 12% by next year, which we think can be pretty sustainable going forward. See our latest analysis for Costamare The company has a long dividend track record, but it doesn't look great with cuts in the past. Since 2015, the annual payment back then was $1.12, compared to the most recent full-year payment of $0.46. This works out to be a decline of approximately 8.5% per year over that time. Generally, we don't like to see a dividend that has been declining over time as this can degrade shareholders' returns and indicate that the company may be running into problems. Given that the track record hasn't been stellar, we really want to see earnings per share growing over time. It's encouraging to see that Costamare has been growing its earnings per share at 33% a year over the past five years. Earnings per share is growing at a solid clip, and the payout ratio is low which we think is an ideal combination in a dividend stock as the company can quite easily raise the dividend in the future. Overall, we like to see the dividend staying consistent, and we think Costamare might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we've picked out 3 warning signs for Costamare that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. 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
Those who invested in NEXT (LON:NXT) five years ago are up 178%
When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. Long term NEXT plc (LON:NXT) shareholders would be well aware of this, since the stock is up 148% in five years. Meanwhile the share price is 2.4% higher than it was a week ago. So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Over half a decade, NEXT managed to grow its earnings per share at 8.4% a year. This EPS growth is slower than the share price growth of 20% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). We know that NEXT has improved its bottom line lately, but is it going to grow revenue? Check if analysts think NEXT will grow revenue in the future. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, NEXT's TSR for the last 5 years was 178%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. NEXT provided a TSR of 9.0% over the last twelve months. Unfortunately this falls short of the market return. If we look back over five years, the returns are even better, coming in at 23% per year for five years. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. It's always interesting to track share price performance over the longer term. But to understand NEXT better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for NEXT you should be aware of. Of course NEXT may not be the best stock to buy. So you may wish to see this free collection of growth stocks. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. 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
22-03-2025
- Business
- Yahoo
Shareholders in Bausch Health Companies (NYSE:BHC) are in the red if they invested three years ago
Investing in stocks inevitably means buying into some companies that perform poorly. But long term Bausch Health Companies Inc. (NYSE:BHC) shareholders have had a particularly rough ride in the last three year. Regrettably, they have had to cope with a 69% drop in the share price over that period. And more recent buyers are having a tough time too, with a drop of 25% in the last year. On the other hand, we note it's up 10.0% in about a month. Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business. Given that Bausch Health Companies didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit. Over three years, Bausch Health Companies grew revenue at 5.4% per year. That's not a very high growth rate considering it doesn't make profits. It's likely this weak growth has contributed to an annualised return of 19% for the last three years. It can be well worth keeping an eye on growth stocks that disappoint the market, because sometimes they re-accelerate. After all, growing a business isn't easy, and the process will not always be smooth. The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image). If you are thinking of buying or selling Bausch Health Companies stock, you should check out this FREE detailed report on its balance sheet. Bausch Health Companies shareholders are down 25% for the year, but the market itself is up 9.4%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 9% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Bausch Health Companies better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Bausch Health Companies . We will like Bausch Health Companies better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. 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
