Latest news with #WirelessTelecom
Yahoo
27-07-2025
- Business
- Yahoo
1&1's (ETR:1U1) Returns On Capital Not Reflecting Well On The Business
There are a few key trends to look for if we want to identify the next multi-bagger. 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. Although, when we looked at 1&1 (ETR:1U1), it didn't seem to tick all of these boxes. 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. Understanding Return On Capital Employed (ROCE) 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 1&1 is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.07 = €546m ÷ (€8.4b - €680m) (Based on the trailing twelve months to March 2025). Therefore, 1&1 has an ROCE of 7.0%. In absolute terms, that's a low return and it also under-performs the Wireless Telecom industry average of 9.0%. Check out our latest analysis for 1&1 Above you can see how the current ROCE for 1&1 compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for 1&1 . The Trend Of ROCE On the surface, the trend of ROCE at 1&1 doesn't inspire confidence. To be more specific, ROCE has fallen from 13% over the last five years. 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. The Bottom Line On 1&1's ROCE To conclude, we've found that 1&1 is reinvesting in the business, but returns have been falling. Since the stock has declined 16% over the last five years, investors may not be too optimistic on this trend improving either. All in all, the inherent trends aren't typical of multi-baggers, so if that's what you're after, we think you might have more luck elsewhere. One more thing to note, we've identified 2 warning signs with 1&1 and understanding these should be part of your investment process. While 1&1 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. 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
27-07-2025
- Business
- Yahoo
1&1's (ETR:1U1) Returns On Capital Not Reflecting Well On The Business
There are a few key trends to look for if we want to identify the next multi-bagger. 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. Although, when we looked at 1&1 (ETR:1U1), it didn't seem to tick all of these boxes. 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. Understanding Return On Capital Employed (ROCE) 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 1&1 is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.07 = €546m ÷ (€8.4b - €680m) (Based on the trailing twelve months to March 2025). Therefore, 1&1 has an ROCE of 7.0%. In absolute terms, that's a low return and it also under-performs the Wireless Telecom industry average of 9.0%. Check out our latest analysis for 1&1 Above you can see how the current ROCE for 1&1 compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for 1&1 . The Trend Of ROCE On the surface, the trend of ROCE at 1&1 doesn't inspire confidence. To be more specific, ROCE has fallen from 13% over the last five years. 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. The Bottom Line On 1&1's ROCE To conclude, we've found that 1&1 is reinvesting in the business, but returns have been falling. Since the stock has declined 16% over the last five years, investors may not be too optimistic on this trend improving either. All in all, the inherent trends aren't typical of multi-baggers, so if that's what you're after, we think you might have more luck elsewhere. One more thing to note, we've identified 2 warning signs with 1&1 and understanding these should be part of your investment process. While 1&1 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
26-07-2025
- Business
- Yahoo
Airtel Africa First Quarter 2026 Earnings: EPS: US$0.034 (vs US$0.002 in 1Q 2025)
Airtel Africa (LON:AAF) First Quarter 2026 Results Key Financial Results Revenue: US$1.42b (up 22% from 1Q 2025). Net income: US$126.0m (up by US$119.0m from 1Q 2025). Profit margin: 8.9% (up from 0.6% in 1Q 2025). The increase in margin was driven by higher revenue. EPS: US$0.034 (up from US$0.002 in 1Q 2025). 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. All figures shown in the chart above are for the trailing 12 month (TTM) period Airtel Africa Earnings Insights Looking ahead, revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Wireless Telecom industry in Europe. Performance of the market in the United Kingdom. The company's shares are up 4.3% from a week ago. Risk Analysis Be aware that Airtel Africa is showing 2 warning signs in our investment analysis and 1 of those makes us a bit uncomfortable... 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
25-07-2025
- Business
- Yahoo
T-Mobile US Second Quarter 2025 Earnings: EPS Beats Expectations
T-Mobile US (NASDAQ:TMUS) Second Quarter 2025 Results Key Financial Results Revenue: US$21.1b (up 6.9% from 2Q 2024). Net income: US$3.22b (up 10% from 2Q 2024). Profit margin: 15% (in line with 2Q 2024). EPS: US$2.84 (up from US$2.50 in 2Q 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period T-Mobile US EPS Beats Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.3%. Looking ahead, revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Wireless Telecom industry in the US. Performance of the American Wireless Telecom industry. The company's shares are up 9.0% from a week ago. Risk Analysis What about risks? Every company has them, and we've spotted 1 warning sign for T-Mobile US 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
XOX Berhad's (KLSE:XOX) Returns On Capital Are Heading Higher
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding 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. Speaking of which, we noticed some great changes in XOX Berhad's (KLSE:XOX) returns on capital, so let's have a look. Our free stock report includes 3 warning signs investors should be aware of before investing in XOX Berhad. Read for free now. 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 XOX Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.14 = RM22m ÷ (RM310m - RM146m) (Based on the trailing twelve months to December 2024). Therefore, XOX Berhad has an ROCE of 14%. In absolute terms, that's a satisfactory return, but compared to the Wireless Telecom industry average of 11% it's much better. See our latest analysis for XOX 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 XOX Berhad. The fact that XOX Berhad is now generating some pre-tax profits from its prior investments is very encouraging. About five years ago the company was generating losses but things have turned around because it's now earning 14% on its capital. And unsurprisingly, like most companies trying to break into the black, XOX Berhad is utilizing 60% more capital than it was five years ago. We like this trend, because it tells us the company has profitable reinvestment opportunities available to it, and if it continues going forward that can lead to a multi-bagger performance. On a separate but related note, it's important to know that XOX Berhad has a current liabilities to total assets ratio of 47%, which we'd consider pretty high. 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. In summary, it's great to see that XOX Berhad has managed to break into profitability and is continuing to reinvest in its business. Although the company may be facing some issues elsewhere since the stock has plunged 80% in the last five years. In any case, we believe the economic trends of this company are positive and looking into the stock further could prove rewarding. If you want to know some of the risks facing XOX Berhad we've found 3 warning signs (1 is a bit unpleasant!) that you should be aware of before investing here. While XOX 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. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
