Latest news with #UEMEdgentaBerhad
Barnama
29-05-2025
- Business
- Barnama
Edgenta Eyes Recovery As International Wins Set To Offset Q1 Challenges
KUALA LUMPUR, May 29 (Bernama) -- UEM Edgenta Berhad ('UEM Edgenta'), a regional leader in Asset Management and Infrastructure Solutions, today announced its unaudited financial results for the first quarter ended 31 March 2025 ('Q1 FY2025'), reporting a Loss Before Tax (LBT) of RM11.8 million, compared to a Profit Before Tax (PBT) of RM19.6 million in the same period last year. Revenue stood at RM646.1 million, a 4.6% decrease from RM677.6 million in Q1 FY2024. The performance was primarily affected by higher operational costs, particularly in manpower, as well as the completion of several one-off contracts and cyclical factors. Despite these headwinds, UEM Edgenta is seeing positive momentum from its international operations, which are expected to support performance moving forward. The Group's operations in Saudi Arabia and the UAE achieved a strong 24% year-on-year revenue growth, driven by effective integration efforts and the scaling of newly acquired entities. In Singapore, new contract wins amounting to RM462.8 million within the Healthcare Solutions division contributed to an encouraging orderbook, while additional wins in Taiwan (RM328.7 million) are also supporting the Group's efforts
Yahoo
26-05-2025
- Business
- Yahoo
UEM Edgenta Berhad (KLSE:EDGENTA) Is Finding It Tricky To Allocate Its Capital
What financial metrics can indicate to us that a company is maturing or even in decline? More often than not, we'll see a declining return on capital employed (ROCE) and a declining amount of capital employed. Basically the company is earning less on its investments and it is also reducing its total assets. In light of that, from a first glance at UEM Edgenta Berhad (KLSE:EDGENTA), we've spotted some signs that it could be struggling, so let's investigate. 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. Analysts use this formula to calculate it for UEM Edgenta Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.072 = RM143m ÷ (RM3.0b - RM1.0b) (Based on the trailing twelve months to December 2024). Therefore, UEM Edgenta Berhad has an ROCE of 7.2%. In absolute terms, that's a low return but it's around the Construction industry average of 8.2%. See our latest analysis for UEM Edgenta Berhad In the above chart we have measured UEM Edgenta Berhad'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 UEM Edgenta Berhad . We are a bit worried about the trend of returns on capital at UEM Edgenta Berhad. To be more specific, the ROCE was 11% five years ago, but since then it has dropped noticeably. 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 UEM Edgenta Berhad becoming one if things continue as they have. In summary, it's unfortunate that UEM Edgenta Berhad is generating lower returns from the same amount of capital. Long term shareholders who've owned the stock over the last five years have experienced a 51% depreciation in their investment, so it appears the market might not like these trends either. With underlying trends that aren't great in these areas, we'd consider looking elsewhere. If you want to continue researching UEM Edgenta Berhad, you might be interested to know about the 1 warning sign that our analysis has discovered. 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
15-04-2025
- Business
- Yahoo
Shareholders in UEM Edgenta Berhad (KLSE:EDGENTA) are in the red if they invested five years ago
Statistically speaking, long term investing is a profitable endeavour. But that doesn't mean long term investors can avoid big losses. To wit, the UEM Edgenta Berhad (KLSE:EDGENTA) share price managed to fall 71% over five long years. That's an unpleasant experience for long term holders. But it's up 8.3% in the last week. It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that. Our free stock report includes 1 warning sign investors should be aware of before investing in UEM Edgenta Berhad. Read for free now. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). Looking back five years, both UEM Edgenta Berhad's share price and EPS declined; the latter at a rate of 22% per year. This change in EPS is remarkably close to the 22% average annual decrease in the share price. This suggests that market participants have not changed their view of the company all that much. Rather, the share price change has reflected changes in earnings per share. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). We know that UEM Edgenta Berhad has improved its bottom line lately, but is it going to grow revenue? Check if analysts think UEM Edgenta Berhad will grow revenue in the future. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, UEM Edgenta Berhad's TSR for the last 5 years was -68%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. We regret to report that UEM Edgenta Berhad shareholders are down 16% for the year (even including dividends). 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. However, the loss over the last year isn't as bad as the 11% per annum loss investors have suffered over the last half decade. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 1 warning sign we've spotted with UEM Edgenta Berhad . If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation). 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.
