Latest news with #financialindicators
Yahoo
23-05-2025
- Business
- Yahoo
Is Generation Development Group Limited's (ASX:GDG) Recent Performance Tethered To Its Attractive Financial Prospects?
Generation Development Group's (ASX:GDG) stock up by 2.4% over the past week. Given its impressive performance, we decided to study the company's key financial indicators as a company's long-term fundamentals usually dictate market outcomes. Specifically, we decided to study Generation Development Group's ROE in this article. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital. Our free stock report includes 2 warning signs investors should be aware of before investing in Generation Development Group. Read for free now. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Generation Development Group is: 23% = AU$80m ÷ AU$346m (Based on the trailing twelve months to December 2024). The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every A$1 worth of equity, the company was able to earn A$0.23 in profit. Check out our latest analysis for Generation Development Group So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. First thing first, we like that Generation Development Group has an impressive ROE. Secondly, even when compared to the industry average of 16% the company's ROE is quite impressive. So, the substantial 80% net income growth seen by Generation Development Group over the past five years isn't overly surprising. As a next step, we compared Generation Development Group's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 19%. Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Generation Development Group is trading on a high P/E or a low P/E, relative to its industry. Generation Development Group's significant three-year median payout ratio of 84% (where it is retaining only 16% of its income) suggests that the company has been able to achieve a high growth in earnings despite returning most of its income to shareholders. Moreover, Generation Development Group is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 44% over the next three years. Still forecasts suggest that Generation Development Group's future ROE will drop to 8.5% even though the the company's payout ratio is expected to decrease. This suggests that there could be other factors could driving the anticipated decline in the company's ROE. In total, we are pretty happy with Generation Development Group's performance. We are particularly impressed by the considerable earnings growth posted by the company, which was likely backed by its high ROE. While the company is paying out most of its earnings as dividends, it has been able to grow its earnings in spite of it, so that's probably a good sign. Having said that, on studying current analyst estimates, we were concerned to see that while the company has grown its earnings in the past, analysts expect its earnings to shrink in the future. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. 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
10-05-2025
- Business
- Yahoo
Is Kimly Limited's (Catalist:1D0) Recent Stock Performance Influenced By Its Fundamentals In Any Way?
Kimly (Catalist:1D0) has had a great run on the share market with its stock up by a significant 8.2% over the last month. As most would know, fundamentals are what usually guide market price movements over the long-term, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. Particularly, we will be paying attention to Kimly's ROE today. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. 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. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Kimly is: 19% = S$36m ÷ S$190m (Based on the trailing twelve months to September 2024). The 'return' is the yearly profit. That means that for every SGD1 worth of shareholders' equity, the company generated SGD0.19 in profit. View our latest analysis for Kimly We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. To begin with, Kimly seems to have a respectable ROE. Further, the company's ROE compares quite favorably to the industry average of 7.0%. This certainly adds some context to Kimly's decent 8.4% net income growth seen over the past five years. As a next step, we compared Kimly's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 32% in the same period. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. What is 1D0 worth today? The intrinsic value infographic in our free research report helps visualize whether 1D0 is currently mispriced by the market. While Kimly has a three-year median payout ratio of 61% (which means it retains 39% of profits), the company has still seen a fair bit of earnings growth in the past, meaning that its high payout ratio hasn't hampered its ability to grow. Besides, Kimly has been paying dividends over a period of eight years. This shows that the company is committed to sharing profits with its shareholders. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 65%. As a result, Kimly's ROE is not expected to change by much either, which we inferred from the analyst estimate of 17% for future ROE. In total, it does look like Kimly has some positive aspects to its business. Its earnings have grown respectably as we saw earlier, which was likely due to the company reinvesting its earnings at a pretty high rate of return. However, given the high ROE, we do think that the company is reinvesting a small portion of its profits. This could likely be preventing the company from growing to its full extent. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. 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.
Zawya
06-05-2025
- Business
- Zawya
Egypt: President El-Sisi Meets Prime Minister, Central Bank Governor, and Minister of Finance
Today, President Abdel Fattah El-Sisi met with Prime Minister, Dr. Mostafa Madbouly, Governor of the Central Bank of Egypt, Mr. Hassan Abdallah, and Minister of Finance, Mr. Ahmed Kouchouk. Spokesman for the Presidency, Ambassador Mohamed El-Shennawy, stated that the President was briefed on macroeconomic indicators, as well as the economic and structural reforms and measures the government is implementing. These efforts aim to improve financial and economic indicators through sectoral programs that cover various economic activities, while continuing to expand and enhance social protection programs targeting the most vulnerable groups. The meeting also reviewed updates on the implementation of the economic reform program, increasing productive activities and sectors, as well as diversifying and stimulating economic sectors. This serves to maximize return for the state, contain inflationary pressures, encourage the private sector to drive economic growth and employment, and attract more domestic and foreign investment flows. President El-Sisi emphasized the necessity of continuing and strengthening coordination between fiscal and monetary policies, to ensure their alignment with the state's economic vision. The President reiterated the significance of focusing on increasing foreign currency reserves levels, fulfilling the necessary financing needs to enhance development efforts, sustainably and strongly reducing the debt of state's budget entities and servicing it, and working to reduce external debt. Distributed by APO Group on behalf of Presidency of the Arab Republic of Egypt.
