Latest news with #YongmaoHoldings
Yahoo
6 days ago
- Business
- Yahoo
Yongmao Holdings (SGX:BKX) Will Pay A Dividend Of CN¥0.01
Yongmao Holdings Limited's (SGX:BKX) investors are due to receive a payment of CN¥0.01 per share on 5th of September. This payment means the dividend yield will be 1.4%, which is below the average for the industry. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Yongmao Holdings' Projected Earnings Seem Likely To Cover Future Distributions If it is predictable over a long period, even low dividend yields can be attractive. Yongmao Holdings is quite easily earning enough to cover the dividend, however it is being let down by weak cash flows. We think that cash flows should take priority over earnings, so this is definitely a worry for the dividend going forward. EPS is set to fall by 11.1% over the next 12 months if recent trends continue. If the dividend continues along recent trends, we estimate the payout ratio could be 2.7%, which we consider to be quite comfortable, with most of the company's earnings left over to grow the business in the future. Check out our latest analysis for Yongmao Holdings Dividend Volatility The company has a long dividend track record, but it doesn't look great with cuts in the past. Since 2015, the dividend has gone from CN¥0.138 total annually to CN¥0.056. The dividend has shrunk at around 8.6% a year during that period. 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. The Dividend Has Limited Growth Potential With a relatively unstable dividend, and a poor history of shrinking dividends, it's even more important to see if EPS is growing. Over the past five years, it looks as though Yongmao Holdings' EPS has declined at around 11% a year. This steep decline can indicate that the business is going through a tough time, which could constrain its ability to pay a larger dividend each year in the future. The Dividend Could Prove To Be Unreliable In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about Yongmao Holdings' payments, as there could be some issues with sustaining them into the future. While Yongmao Holdings is earning enough to cover the payments, the cash flows are lacking. We would probably look elsewhere for an income investment. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. For example, we've identified 5 warning signs for Yongmao Holdings (2 shouldn't be ignored!) that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield 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.
Yahoo
29-04-2025
- Business
- Yahoo
Yongmao Holdings (SGX:BKX) Might Be Having Difficulty Using Its Capital Effectively
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. However, after investigating Yongmao Holdings (SGX:BKX), we don't think it's current trends fit the mold of a multi-bagger. We've discovered 5 warning signs about Yongmao Holdings. View them 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. Analysts use this formula to calculate it for Yongmao Holdings: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.027 = CN¥32m ÷ (CN¥2.2b - CN¥1.0b) (Based on the trailing twelve months to September 2024). Thus, Yongmao Holdings has an ROCE of 2.7%. Ultimately, that's a low return and it under-performs the Machinery industry average of 4.4%. See our latest analysis for Yongmao Holdings 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're interested in investigating Yongmao Holdings' past further, check out this free graph covering Yongmao Holdings' past earnings, revenue and cash flow. On the surface, the trend of ROCE at Yongmao Holdings doesn't inspire confidence. To be more specific, ROCE has fallen from 15% over the last five years. And considering revenue has dropped while employing more capital, we'd be cautious. If this were to continue, you might be looking at a company that is trying to reinvest for growth but is actually losing market share since sales haven't increased. On a side note, Yongmao Holdings' current liabilities are still rather high at 46% of total assets. This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk. Ideally we'd like to see this reduce as that would mean fewer obligations bearing risks. We're a bit apprehensive about Yongmao Holdings because despite more capital being deployed in the business, returns on that capital and sales have both fallen. And long term shareholders have watched their investments stay flat over the last five years. With underlying trends that aren't great in these areas, we'd consider looking elsewhere. On a final note, we found 5 warning signs for Yongmao Holdings (2 can't be ignored) you should be aware of. While Yongmao Holdings 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.
