Latest news with #financialsustainability
The Independent
2 days ago
- Business
- The Independent
National Trust could be forced to ditch British favourite from menu due to job cuts
The National Trust is proposing to cut approximately 550 jobs, representing six per cent of its staff, as part of a plan to save £26m. The charity attributes the need for these savings to rising costs, including increases in employers' National Insurance and the National Living Wage. As part of the cost-cutting measures, some National Trust cafes may cease baking scones on-site, with the beloved British treats potentially being shipped in from a central source. These changes to scone provision are expected to affect less than ten per cent of the charity's cafes, specifically smaller, less financially sustainable outlets. The National Trust stated that despite growing visitor numbers and donations, increasing costs are outstripping this growth, necessitating measures to ensure long-term financial sustainability.
Yahoo
3 days ago
- Business
- Yahoo
Does MoneyMax Financial Services (Catalist:5WJ) Deserve A Spot On Your Watchlist?
It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in MoneyMax Financial Services (Catalist:5WJ). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide MoneyMax Financial Services with the means to add long-term value to shareholders. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. How Quickly Is MoneyMax Financial Services Increasing Earnings Per Share? If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Impressively, MoneyMax Financial Services has grown EPS by 24% per year, compound, in the last three years. If growth like this continues on into the future, then shareholders will have plenty to smile about. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. EBIT margins for MoneyMax Financial Services remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 37% to S$390m. That's progress. You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart. See our latest analysis for MoneyMax Financial Services Since MoneyMax Financial Services is no giant, with a market capitalisation of S$287m, you should definitely check its cash and debt before getting too excited about its prospects. Are MoneyMax Financial Services Insiders Aligned With All Shareholders? It's pleasing to see company leaders with putting their money on the line, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. So it is good to see that MoneyMax Financial Services insiders have a significant amount of capital invested in the stock. Given insiders own a significant chunk of shares, currently valued at S$87m, they have plenty of motivation to push the business to succeed. That holding amounts to 30% of the stock on issue, thus making insiders influential owners of the business and aligned with the interests of shareholders. Does MoneyMax Financial Services Deserve A Spot On Your Watchlist? For growth investors, MoneyMax Financial Services' raw rate of earnings growth is a beacon in the night. This EPS growth rate is something the company should be proud of, and so it's no surprise that insiders are holding on to a considerable chunk of shares. Fast growth and confident insiders should be enough to warrant further research, so it would seem that it's a good stock to follow. Before you take the next step you should know about the 1 warning sign for MoneyMax Financial Services that we have uncovered. There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of Singaporean companies which have demonstrated growth backed by significant insider holdings. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. 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
4 days ago
- Business
- Yahoo
Should You Be Adding Korvest (ASX:KOV) To Your Watchlist Today?
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. In contrast to all that, many investors prefer to focus on companies like Korvest (ASX:KOV), which has not only revenues, but also profits. While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing. 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. How Fast Is Korvest Growing? If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. That makes EPS growth an attractive quality for any company. We can see that in the last three years Korvest grew its EPS by 4.2% per year. This may not be setting the world alight, but it does show that EPS is on the upwards trend. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. EBIT margins for Korvest remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 17% to AU$120m. That's progress. The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers. View our latest analysis for Korvest Korvest isn't a huge company, given its market capitalisation of AU$141m. That makes it extra important to check on its balance sheet strength. Are Korvest Insiders Aligned With All Shareholders? It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. Of course, we can never be sure what insiders are thinking, we can only judge their actions. We haven't seen any insiders selling Korvest shares, in the last year. With that in mind, it's heartening that Warrick R. Ranson, the Independent Non-Executive Director of the company, paid AU$25k for shares at around AU$9.93 each. It seems that at least one insider is prepared to show the market there is potential within Korvest. Should You Add Korvest To Your Watchlist? As previously touched on, Korvest is a growing business, which is encouraging. Not every business can grow its EPS, but Korvest certainly can. Despite there being a solitary insider adding to their holdings, it's enough to consider adding this to the watchlist. Even so, be aware that Korvest is showing 2 warning signs in our investment analysis , you should know about... There are plenty of other companies that have insiders buying up shares. So if you like the sound of Korvest, you'll probably love this curated collection of companies in AU that have an attractive valuation alongside insider buying in the last three months. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. 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
5 days ago
- Business
- Yahoo
Do Monadelphous Group's (ASX:MND) Earnings Warrant Your Attention?
The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Monadelphous Group (ASX:MND). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. How Quickly Is Monadelphous Group Increasing Earnings Per Share? The market is a voting machine in the short term, but a weighing machine in the long term, so you'd expect share price to follow earnings per share (EPS) outcomes eventually. That means EPS growth is considered a real positive by most successful long-term investors. Over the last three years, Monadelphous Group has grown EPS by 16% per year. That's a pretty good rate, if the company can sustain it. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. EBIT margins for Monadelphous Group remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 11% to AU$2.0b. That's encouraging news for the company! In the chart below, you can see how the company has grown earnings and revenue, over time. For finer detail, click on the image. See our latest analysis for Monadelphous Group In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Monadelphous Group's forecast profits? Are Monadelphous Group Insiders Aligned With All Shareholders? It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. Of course, we can never be sure what insiders are thinking, we can only judge their actions. We note that Monadelphous Group insiders spent AU$158k on stock, over the last year; in contrast, we didn't see any selling. That's nice to see, because it suggests insiders are optimistic. We also note that it was the MD & Director, Zoran Bebic, who made the biggest single acquisition, paying AU$118k for shares at about AU$11.80 each. On top of the insider buying, it's good to see that Monadelphous Group insiders have a valuable investment in the business. Holding AU$78m worth of stock in the company is no laughing matter and insiders will be committed in delivering the best outcomes for shareholders. This would indicate that the goals of shareholders and management are one and the same. While insiders are apparently happy to hold and accumulate shares, that is just part of the big picture. That's because Monadelphous Group's CEO, Zoran Bebic, is paid at a relatively modest level when compared to other CEOs for companies of this size. The median total compensation for CEOs of companies similar in size to Monadelphous Group, with market caps between AU$1.5b and AU$4.9b, is around AU$2.0m. Monadelphous Group offered total compensation worth AU$1.6m to its CEO in the year to June 2024. That is actually below the median for CEO's of similarly sized companies. CEO compensation is hardly the most important aspect of a company to consider, but when it's reasonable, that gives a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of good governance, more generally. Should You Add Monadelphous Group To Your Watchlist? As previously touched on, Monadelphous Group is a growing business, which is encouraging. On top of that, we've seen insiders buying shares even though they already own plenty. These factors alone make the company an interesting prospect for your watchlist, as well as continuing research. Even so, be aware that Monadelphous Group is showing 1 warning sign in our investment analysis , you should know about... There are plenty of other companies that have insiders buying up shares. So if you like the sound of Monadelphous Group, you'll probably love this curated collection of companies in AU that have an attractive valuation alongside insider buying in the last three months. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. 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
Associated Press
6 days ago
- Business
- Associated Press
Cal State is still in the red despite tuition increase and spending cuts
California State University says it's short $2.3 billion, a staggering budget gap that's grown sharply since the system first revealed two years ago that it didn't have the money to properly educate its students. How the nation's largest public four-year university system will generate that revenue is anyone's guess, as annual tuition increases of 6% that kicked in last year and an influx of state taxpayer support have been insufficient to pay for Cal State's growing labor, energy and education expenses. The details of that cumulative gap were unveiled at the bimonthly Cal State Board of Trustees meeting this week. More state support is increasingly unlikely, as California budget experts forecast multi-billion-dollar budget shortfalls worsened by severe federal cuts to major public safety-net programs, like Medicaid, and possible cuts to financial aid. The funding shortfall, which doesn't include billions of dollars in building maintenance backlogs, is a large portion of the system's roughly $9 billion operating budget. 'This growing gap demonstrates why we need immediate action to achieve financial sustainability,' said Jeni Kitchell, an assistant vice chancellor for finance of Cal State. 'We cannot sustain our current level of funding, especially while operating from a position of underfunding.' The system fought off a $375 million proposed cut to its state allocation this year, instead receiving a $144 million cut — a 3% reduction in its state support. Lawmakers are offering Cal State a zero-interest loan to make up for that cut and promised to restore the money next year. Already Cal State has cut more than 1,200 staff positions across the system in the past two years, reduced student support staff by 7% and terminated 1,400 courses during a period of ongoing budget deficits. Without an infusion of cash, the system will have to shift money from some of its initiatives — including improving graduation rates — just to cover mandatory costs, such as health care, insurance, utilities, financial aid and agreed-upon union raises, Cal State leaders said. In such a scenario, system documents show, campuses may have to continue the cost-cutting they've implemented recently, which has included layoffs, reducing job categories, cutting courses and leaving job vacancies unfilled. This year's budget gap is $164 million. State promises of more funding 'violated' Some Cal State trustees said they are frustrated that Gov. Gavin Newsom delayed his promises of five years of increasing state support, which was supposed to total more than $1 billion. Only three years of that compact have been funded to date; the fourth, which was supposed to kick in this year, will instead be spread out between 2026 and 2028, lawmakers and Newsom decided in the most recent state budget deal. Lawmakers didn't signal a fifth year of compact funding, though they may in next year's budget deal. 'We were promised a five-year compact,' said Jack McGrory, a Cal State trustee. He argued that Cal State trustees approved 10% or more in salary increases for workers the past two years based on those promises. 'We did rely on the promise, and the promise was violated, and that's the story that we have to tell, and it's unfortunate, and it's going to put our relationships with the unions and our employees in a really bad situation,' McGrory added. If the compact money or the $144 million state spending cut aren't restored, Cal State won't be able to grow student enrollment at a time when more high school graduates are completing the courses needed to be eligible for Cal State admissions. The system currently enrolls 460,000 students. 'How do we enroll more students if we do not have the resources to hire more faculty, to provide more staff support,' add mental health counselors and more free-food programs for Cal State's largely low-income students, asked Patrick Lenz, the interim chief financial officer of Cal State. Cal State has been trying to slow its spending. The chancellor's office is cutting its budget by $18 million, or 8%, trustees learned at this week's meeting. Several campuses in the Bay Area are consolidating their administrative offices to lower expenses. And last fall the system approved the merging of two campuses to avoid millions of dollars in new spending. Unions say they're owed raises Meanwhile, thousands of employees are in a dispute with Cal State leadership over whether their union contracts guarantee them raises this year. The contracts say that if lawmakers fully fund the Cal State system, some of its workers get raises. Cal State's leadership says that because state lawmakers reduced the system's funding by $144 million, they can't give raises. Unions say because the state is allowing Cal State to borrow that money as a zero-interest loan, the system is fully funded. Cal State says borrowing money isn't the same as being fully funded by the state. System leaders also lack confidence that the state will restore the $144 million cut next year. If the money doesn't appear next year, Cal State would be stuck with a loan that adds to their budget crisis. At least two state lawmakers are siding with unions. 'Damn it, we are here to send a clear message. Do you hear us? Because guess what, if they don't get what they deserve, we're going to shut the s— down,' said Assemblymember Mike Gipson, a Democrat from Gardena, at a press conference outside the system's headquarters Tuesday morning. He was addressing Cal State's chancellor and other leaders who were assembled yards away for their meeting. 'With everything going on with ICE, we don't need to add additional pressure on not only the students but the faculty here. They're already traumatized. Our state is already traumatized,' Gipson added. Assemblymember Al Muratsuchi, a Democrat from Torrance, said he stands in 'solidarity' with union workers to 'to call on the chancellor and the trustees to keep your promise.' The California State University Employees Union, with 35,000 clerical, custodial and student assistant members, says that the raises they think they're owed are worth $30 million more than what Cal State plans to give them. Erin Foote, a vice president for organizing for the union, said in an interview that Cal State leaders should partner with the union in pushing for legislation or a ballot measure to ensure Cal State and University of California have guaranteed funding. 'It costs millions of dollars to run a revenue measure, and we would need the CSU to be our partner,' Foote said. Cal State's cash reserves are at $760 million — enough to operate the system for a month. How Cal State's budget shortfall grew How did Cal State's cumulative funding gap grow from $1.5 billion to $2.3 billion since 2023? Chancellor's office staff point to these latest budget realities: In that same time, Cal State's revenue grew, but not by enough to cover the increase in costs. State funding that goes to the system's operating budget — the corpus of money to pay for its education mission — grew from $4.5 billion to $4.87 billion last year. State support is Cal State's largest source of funding for its operations. And the system's tuition revenue jumped from $3.24 billion to $3.53 billion. Combined, those are increases of almost $700 million, according to the system's financial transparency portal. Next year is projected to be more of the same fiscal hurt. Cal State budget officials say that the system will incur $365 million in new, mandatory costs in 2026-27, including $63 million in increased staff health care premiums and about $160 million in wage increases. That amount doesn't include growing enrollment by the 3,500 students that the compact requires, which would cost $56 million. For Cal State to afford the new, mandatory expenses, the state would need to return the 3% cut and a portion of the compact funding the system was supposed to get this year. None of that is a sure bet. The funding they can rely on is new tuition revenue: students will be charged another 6% increase next fall. ___ This story was originally published by CalMatters and distributed through a partnership with The Associated Press.
