Latest news with #TradeDistributors
Yahoo
26-05-2025
- Business
- Yahoo
Here's What's Concerning About Redox's (ASX:RDX) Returns On Capital
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. 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. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So while Redox (ASX:RDX) has a high ROCE right now, lets see what we can decipher from how returns are changing. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. 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 Redox is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.21 = AU$117m ÷ (AU$736m - AU$167m) (Based on the trailing twelve months to December 2024). Thus, Redox has an ROCE of 21%. In absolute terms that's a great return and it's even better than the Trade Distributors industry average of 12%. View our latest analysis for Redox In the above chart we have measured Redox's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for Redox . On the surface, the trend of ROCE at Redox doesn't inspire confidence. To be more specific, while the ROCE is still high, it's fallen from 33% where it was five years ago. Meanwhile, the business is utilizing more capital but this hasn't moved the needle much in terms of sales in the past 12 months, so this could reflect longer term investments. 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. On a related note, Redox has decreased its current liabilities to 23% 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, Redox is reinvesting funds back into the business for growth but unfortunately it looks like sales haven't increased much just yet. Unsurprisingly then, the total return to shareholders over the last year has been flat. On the whole, we aren't too inspired by the underlying trends and we think there may be better chances of finding a multi-bagger elsewhere. Like most companies, Redox does come with some risks, and we've found 1 warning sign that you should be aware of. If you'd like to see other companies earning high returns, check out our free list of companies earning high returns with solid balance sheets here. 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
24-05-2025
- Business
- Yahoo
Engtex Group Berhad First Quarter 2025 Earnings: EPS: RM0.001 (vs RM0.012 in 1Q 2024)
Revenue: RM310.3m (down 19% from 1Q 2024). Net income: RM407.0k (down 96% from 1Q 2024). Profit margin: 0.1% (down from 2.5% in 1Q 2024). EPS: RM0.001 (down from RM0.012 in 1Q 2024). Our free stock report includes 4 warning signs investors should be aware of before investing in Engtex Group Berhad. Read for free now. All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to grow 7.7% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the Trade Distributors industry in Malaysia. Performance of the Malaysian Trade Distributors industry. The company's shares are down 2.9% from a week ago. What about risks? Every company has them, and we've spotted 4 warning signs for Engtex Group Berhad (of which 1 is potentially serious!) you should know about. 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
23-05-2025
- Business
- Yahoo
Turbo-Mech Berhad's (KLSE:TURBO) Returns On Capital Not Reflecting Well On The Business
When we're researching a company, it's sometimes hard to find the warning signs, but there are some financial metrics that can help spot trouble early. Typically, we'll see the trend of both return on capital employed (ROCE) declining and this usually coincides with a decreasing amount of capital employed. Basically the company is earning less on its investments and it is also reducing its total assets. So after glancing at the trends within Turbo-Mech Berhad (KLSE:TURBO), we weren't too hopeful. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for Turbo-Mech Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.0064 = RM792k ÷ (RM132m - RM7.4m) (Based on the trailing twelve months to December 2024). Thus, Turbo-Mech Berhad has an ROCE of 0.6%. Ultimately, that's a low return and it under-performs the Trade Distributors industry average of 9.6%. See our latest analysis for Turbo-Mech Berhad Historical performance is a great place to start when researching a stock so above you can see the gauge for Turbo-Mech Berhad's ROCE against it's prior returns. If you're interested in investigating Turbo-Mech Berhad's past further, check out this free graph covering Turbo-Mech Berhad's past earnings, revenue and cash flow. We are a bit worried about the trend of returns on capital at Turbo-Mech Berhad. Unfortunately the returns on capital have diminished from the 2.0% that they were earning five years ago. On top of that, it's worth noting that the amount of capital employed within the business has remained relatively steady. Companies that exhibit these attributes tend to not be shrinking, but they can be mature and facing pressure on their margins from competition. So because these trends aren't typically conducive to creating a multi-bagger, we wouldn't hold our breath on Turbo-Mech Berhad becoming one if things continue as they have. In the end, the trend of lower returns on the same amount of capital isn't typically an indication that we're looking at a growth stock. It should come as no surprise then that the stock has fallen 15% over the last five years, so it looks like investors are recognizing these changes. Unless there is a shift to a more positive trajectory in these metrics, we would look elsewhere. Turbo-Mech Berhad does come with some risks though, we found 4 warning signs in our investment analysis, and 2 of those are a bit concerning... While Turbo-Mech 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
22-05-2025
- Business
- Yahoo
Returns On Capital At KPS Consortium Berhad (KLSE:KPSCB) Have Stalled
What are the early trends we should look for to identify a stock that could multiply in value over the long term? Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base 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. However, after briefly looking over the numbers, we don't think KPS Consortium Berhad (KLSE:KPSCB) has the makings of a multi-bagger going forward, but let's have a look at why that may be. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for KPS Consortium Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.052 = RM19m ÷ (RM515m - RM158m) (Based on the trailing twelve months to December 2024). Therefore, KPS Consortium Berhad has an ROCE of 5.2%. In absolute terms, that's a low return and it also under-performs the Trade Distributors industry average of 9.6%. View our latest analysis for KPS Consortium 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'd like to look at how KPS Consortium Berhad has performed in the past in other metrics, you can view this free graph of KPS Consortium Berhad's past earnings, revenue and cash flow. Things have been pretty stable at KPS Consortium Berhad, with its capital employed and returns on that capital staying somewhat the same for the last five years. This tells us the company isn't reinvesting in itself, so it's plausible that it's past the growth phase. With that in mind, unless investment picks up again in the future, we wouldn't expect KPS Consortium Berhad to be a multi-bagger going forward. One more thing to note, even though ROCE has remained relatively flat over the last five years, the reduction in current liabilities to 31% of total assets, is good to see from a business owner's perspective. This can eliminate some of the risks inherent in the operations because the business has less outstanding obligations to their suppliers and or short-term creditors than they did previously. We can conclude that in regards to KPS Consortium Berhad's returns on capital employed and the trends, there isn't much change to report on. And investors may be recognizing these trends since the stock has only returned a total of 9.6% to shareholders over the last five years. So if you're looking for a multi-bagger, the underlying trends indicate you may have better chances elsewhere. Since virtually every company faces some risks, it's worth knowing what they are, and we've spotted 2 warning signs for KPS Consortium Berhad (of which 1 doesn't sit too well with us!) that you should know about. 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
19-05-2025
- Business
- Yahoo
Returns On Capital Are Showing Encouraging Signs At Boom Logistics (ASX:BOL)
There are a few key trends to look for if we want to identify the next multi-bagger. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing 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. With that in mind, we've noticed some promising trends at Boom Logistics (ASX:BOL) so let's look a bit deeper. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for Boom Logistics, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.065 = AU$14m ÷ (AU$275m - AU$61m) (Based on the trailing twelve months to December 2024). Therefore, Boom Logistics has an ROCE of 6.5%. In absolute terms, that's a low return and it also under-performs the Trade Distributors industry average of 12%. Check out our latest analysis for Boom Logistics Above you can see how the current ROCE for Boom Logistics 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 Boom Logistics . Boom Logistics has recently broken into profitability so their prior investments seem to be paying off. About five years ago the company was generating losses but things have turned around because it's now earning 6.5% on its capital. Not only that, but the company is utilizing 32% more capital than before, but that's to be expected from a company trying to break into profitability. This can tell us that the company has plenty of reinvestment opportunities that are able to generate higher returns. In summary, it's great to see that Boom Logistics has managed to break into profitability and is continuing to reinvest in its business. And with a respectable 90% awarded to those who held the stock over the last five years, you could argue that these developments are starting to get the attention they deserve. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. Since virtually every company faces some risks, it's worth knowing what they are, and we've spotted 2 warning signs for Boom Logistics (of which 1 shouldn't be ignored!) that you should know about. 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.
