Latest news with #unprofitable
Yahoo
9 hours ago
- Business
- Yahoo
We Wouldn't Be Too Quick To Buy Ecora Resources PLC (LON:ECOR) Before It Goes Ex-Dividend
Ecora Resources PLC (LON:ECOR) is about to trade ex-dividend in the next three days. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Thus, you can purchase Ecora Resources' shares before the 26th of June in order to receive the dividend, which the company will pay on the 25th of July. The company's next dividend payment will be US$0.0111 per share, on the back of last year when the company paid a total of US$0.082 to shareholders. Based on the last year's worth of payments, Ecora Resources has a trailing yield of 2.5% on the current stock price of UK£0.662. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! So we need to investigate whether Ecora Resources can afford its dividend, and if the dividend could grow. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Ecora Resources paid a dividend last year despite being unprofitable. This might be a one-off event, but it's not a sustainable state of affairs in the long run. With the recent loss, it's important to check if the business generated enough cash to pay its dividend. If Ecora Resources didn't generate enough cash to pay the dividend, then it must have either paid from cash in the bank or by borrowing money, neither of which is sustainable in the long term. Dividends consumed 51% of the company's free cash flow last year, which is within a normal range for most dividend-paying organisations. See our latest analysis for Ecora Resources Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Ecora Resources was unprofitable last year, but at least the general trend suggests its earnings have been improving over the past five years. Even so, an unprofitable company whose business does not quickly recover is usually not a good candidate for dividend investors. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Ecora Resources has seen its dividend decline 17% per annum on average over the past 10 years, which is not great to see. Remember, you can always get a snapshot of Ecora Resources's financial health, by checking our visualisation of its financial health, here. Is Ecora Resources worth buying for its dividend? It's hard to get used to Ecora Resources paying a dividend despite reporting a loss over the past year. At least the dividend was covered by free cash flow, however. It's not that we think Ecora Resources is a bad company, but these characteristics don't generally lead to outstanding dividend performance. Although, if you're still interested in Ecora Resources and want to know more, you'll find it very useful to know what risks this stock faces. Case in point: We've spotted 1 warning sign for Ecora Resources you should be aware of. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. — Investing narratives with Fair Values Vita Life Sciences Set for a 12.72% Revenue Growth While Tackling Operational Challenges By Robbo – Community Contributor Fair Value Estimated: A$2.42 · 0.1% Overvalued Vossloh rides a €500 billion wave to boost growth and earnings in the next decade By Chris1 – Community Contributor Fair Value Estimated: €78.41 · 0.1% Overvalued Intuitive Surgical Will Transform Healthcare with 12% Revenue Growth By Unike – Community Contributor Fair Value Estimated: $325.55 · 0.6% Undervalued View more featured narratives — 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
6 days ago
- Business
- Yahoo
1 Unprofitable Stock on Our Watchlist and 2 to Turn Down
Running at a loss can be a red flag. Many of these businesses face mounting challenges as competition increases and funding becomes harder to secure. Unprofitable companies face an uphill battle, but not all are created equal. Luckily for you, StockStory is here to separate the promising ones from the weak. That said, here is one unprofitable company with the potential to become an industry leader and two that could struggle to survive. Trailing 12-Month GAAP Operating Margin: -12.9% Used to manage the multi-year expansion of the Panama Canal that began in 2007, Procore (NYSE:PCOR) offers a software-as-service project, finance, and quality management platform for the construction industry. Why Are We Wary of PCOR? Track record of operating margin losses stem from its decision to pursue growth instead of profits Low free cash flow margin of 9.8% for the last year gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders Procore is trading at $64.18 per share, or 7.3x forward price-to-sales. Dive into our free research report to see why there are better opportunities than PCOR. Trailing 12-Month GAAP Operating Margin: -186% One of the first EV charging companies to go public, Blink Charging (NASDAQ:BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services. Why Is BLNK Not Exciting? Issuance of new shares over the last five years caused its earnings per share to fall by 10.2% annually while its revenue grew Cash burn makes us question whether it can achieve sustainable long-term growth Short cash runway increases the probability of a capital raise that dilutes existing shareholders At $0.90 per share, Blink Charging trades at 0.8x forward price-to-sales. To fully understand why you should be careful with BLNK, check out our full research report (it's free). Trailing 12-Month GAAP Operating Margin: -4.2% Based in Tel Aviv, Fiverr (NYSE:FVRR) operates a fixed price global freelance marketplace for digital services. Why Are We Fans of FVRR? Customers are spending more money on its platform as its average revenue per buyer has increased by 17.4% annually over the last two years Additional sales over the last three years increased its profitability as the 52.1% annual growth in its earnings per share outpaced its revenue Free cash flow margin grew by 9.7 percentage points over the last few years, giving the company more chips to play with Fiverr's stock price of $29.70 implies a valuation ratio of 12.4x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today 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
15-06-2025
- Business
- Yahoo
Shareholders in Hurco Companies (NASDAQ:HURC) are in the red if they invested five years ago
Ideally, your overall portfolio should beat the market average. But every investor is virtually certain to have both over-performing and under-performing stocks. At this point some shareholders may be questioning their investment in Hurco Companies, Inc. (NASDAQ:HURC), since the last five years saw the share price fall 46%. But it's up 6.7% in the last week. Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns. 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. Hurco Companies wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually desire strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size. Over five years, Hurco Companies grew its revenue at 0.08% per year. That's not a very high growth rate considering it doesn't make profits. Given this fairly low revenue growth (and lack of profits), it's not particularly surprising to see the stock down 8% (annualized) in the same time frame. The key question is whether the company can make it to profitability, and beyond, without trouble. It could be worth putting it on your watchlist and revisiting when it makes its maiden profit. You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values). We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.. We've already covered Hurco Companies' share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Dividends have been really beneficial for Hurco Companies shareholders, and that cash payout explains why its total shareholder loss of 41%, over the last 5 years, isn't as bad as the share price return. While the broader market gained around 12% in the last year, Hurco Companies shareholders lost 9.6%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. However, the loss over the last year isn't as bad as the 7% 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with Hurco Companies (including 1 which shouldn't be ignored) . If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: most of them are flying under the radar). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American 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. 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
22-05-2025
- Business
- Yahoo
Companies Like Singular Health Group (ASX:SHG) Are In A Position To Invest In Growth
There's no doubt that money can be made by owning shares of unprofitable businesses. By way of example, Singular Health Group (ASX:SHG) has seen its share price rise 190% over the last year, delighting many shareholders. Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed. In light of its strong share price run, we think now is a good time to investigate how risky Singular Health Group's cash burn is. For the purposes of this article, cash burn is the annual rate at which an unprofitable company spends cash to fund its growth; its negative free cash flow. We'll start by comparing its cash burn with its cash reserves in order to calculate its cash runway. 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. A company's cash runway is calculated by dividing its cash hoard by its cash burn. In December 2024, Singular Health Group had AU$4.6m in cash, and was debt-free. Looking at the last year, the company burnt through AU$3.2m. That means it had a cash runway of around 17 months as of December 2024. That's not too bad, but it's fair to say the end of the cash runway is in sight, unless cash burn reduces drastically. Depicted below, you can see how its cash holdings have changed over time. View our latest analysis for Singular Health Group In our view, Singular Health Group doesn't yet produce significant amounts of operating revenue, since it reported just AU$878k in the last twelve months. Therefore, for the purposes of this analysis we'll focus on how the cash burn is tracking. Over the last year its cash burn actually increased by a very significant 91%. While this spending increase is no doubt intended to drive growth, if the trend continues the company's cash runway will shrink very quickly. Admittedly, we're a bit cautious of Singular Health Group due to its lack of significant operating revenues. We prefer most of the stocks on this list of stocks that analysts expect to grow. Given its cash burn trajectory, Singular Health Group shareholders may wish to consider how easily it could raise more cash, despite its solid cash runway. Generally speaking, a listed business can raise new cash through issuing shares or taking on debt. Commonly, a business will sell new shares in itself to raise cash and drive growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate). Singular Health Group has a market capitalisation of AU$82m and burnt through AU$3.2m last year, which is 4.0% of the company's market value. Given that is a rather small percentage, it would probably be really easy for the company to fund another year's growth by issuing some new shares to investors, or even by taking out a loan. On this analysis of Singular Health Group's cash burn, we think its cash burn relative to its market cap was reassuring, while its increasing cash burn has us a bit worried. Cash burning companies are always on the riskier side of things, but after considering all of the factors discussed in this short piece, we're not too worried about its rate of cash burn. Taking a deeper dive, we've spotted 4 warning signs for Singular Health Group you should be aware of, and 2 of them shouldn't be ignored. Of course Singular Health Group may not be the best stock to buy. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. 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
