We Think DPS Resources Berhad (KLSE:DPS) Is Taking Some Risk With Its Debt

Warren Buffett famously said, 'Volatility is far from synonymous with risk.'  It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses.  Importantly, DPS Resources Berhad (KLSE:DPS) does carry debt.  But the more important question is: how much risk is that debt creating?  What Risk Does Debt Bring?  Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow.   Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing.  However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet.  Of course, debt can be an important tool in businesses, particularly capital heavy businesses.  When we think about a company's use of debt, we first look at cash and debt together.   View our latest analysis for DPS Resources Berhad  What Is DPS Resources Berhad's Net Debt?  As you can see below, at the end of June 2022, DPS Resources Berhad had RM21.1m of debt, up from RM9.54m a year ago. Click the image for more detail.    However, because it has a cash reserve of RM14.6m, its net debt is less, at about RM6.53m.  KLSE:DPS Debt to Equity History September 22nd 2022 How Strong Is DPS Resources Berhad's Balance Sheet?  The latest balance sheet data shows that DPS Resources Berhad had liabilities of RM30.1m due within a year, and liabilities of RM24.7m falling due after that.   Offsetting this, it had RM14.6m in cash and RM46.7m in receivables that were due within 12 months.   So it can boast RM6.42m more liquid assets than total liabilities.   This short term liquidity is a sign that DPS Resources Berhad could probably pay off its debt with ease, as its balance sheet is far from stretched.    In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover).  The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio).   With net debt sitting at just 0.88 times EBITDA, DPS Resources Berhad is arguably pretty conservatively geared.  And this view is supported by the solid interest coverage, with EBIT coming in at 8.1 times the interest expense over the last year.        It is just as well that DPS Resources Berhad's load is not too heavy, because its EBIT was down 72% over the last year.   Falling earnings (if the trend continues) could eventually make even modest debt quite risky.      The balance sheet is clearly the area to focus on when you are analysing debt.  But it is DPS Resources Berhad's earnings that will influence how the balance sheet holds up in the future.  So if you're keen to discover more about its earnings, it might be worth checking out this graph of its long term earnings trend.  Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash.   So we always check how much of that EBIT is translated into free cash flow.    Over the last three years, DPS Resources Berhad saw substantial negative free cash flow, in total.  While investors are no doubt expecting a reversal of that situation in due course, it clearly does mean its use of debt is more risky.    Our View While DPS Resources Berhad's conversion of EBIT to free cash flow makes us cautious about it, its track record of (not) growing its EBIT is no better.   But its not so bad at managing its debt, based on its EBITDA,.       Taking the abovementioned factors together we do think DPS Resources Berhad's debt poses some risks to the business.  So while that leverage does boost returns on equity, we wouldn't really want to see it increase from here.    The balance sheet is clearly the area to focus on when you are analysing debt.  However, not all investment risk resides within the balance sheet - far from it.   These risks can be hard to spot. Every company has them, and we've spotted   2 warning signs for DPS Resources Berhad   you should know about.      When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now. Valuation is complex, but we're helping make it simple.Find out whether DPS Resources Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


Ecomate Holdings Berhad Second Quarter 2023 Earnings: EPS: RM0.005 (vs RM0.011 in 2Q 2022)

Ecomate Holdings Berhad (KLSE:ECOMATE) Second Quarter 2023 ResultsKey Financial Results Revenue: RM13.1m (down 26% from 2Q 2022). Net income: RM1.58m (down 59% from 2Q 2022). Profit margin: 12% (down from 22% in 2Q 2022).The decrease in margin was driven by lower revenue. EPS: RM0.005 (down from RM0.011 in 2Q 2022).  KLSE:ECOMATE Earnings and Revenue History October 26th 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Ecomate Holdings Berhad's share price is broadly unchanged from a week ago.   Risk Analysis Don't forget that there may still be risks. For instance, we've identified   2 warning signs for Ecomate Holdings Berhad (1 makes us a bit uncomfortable)  you should be aware of.Valuation is complex, but we're helping make it simple.Find out whether Ecomate Holdings Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


Is Ecomate Holdings Berhad's (KLSE:ECOMATE) Latest Stock Performance A Reflection Of Its Financial Health?

Ecomate Holdings Berhad's (KLSE:ECOMATE) stock is up by a considerable 29% over the past three months.   Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance.      Specifically, we decided to study Ecomate Holdings Berhad's  ROE in this article.    ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders.  In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.  Check out the opportunities and risks within the MY Consumer Durables industry.  How Do You Calculate Return On Equity?  The formula for ROE is:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Ecomate Holdings Berhad is:29% = RM10m ÷ RM35m (Based on the trailing twelve months to August 2022). The 'return' refers to a company's earnings over the last year.  So, this means that for every MYR1 of its shareholder's investments, the company generates a profit of MYR0.29.   What Is The Relationship Between ROE And Earnings Growth?  So far, we've learned that ROE is a measure of a company's profitability.  Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential.  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.  A Side By Side comparison of Ecomate Holdings Berhad's Earnings Growth And 29% ROE  First thing first, we like that Ecomate Holdings Berhad has an impressive ROE.   Additionally, the company's ROE is higher compared to the industry average of 10% which is quite remarkable.   Under the circumstances, Ecomate Holdings Berhad's considerable five year net income growth of 28% was to be expected.     As a next step, we compared Ecomate Holdings Berhad'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 4.9%.   KLSE:ECOMATE Past Earnings Growth December 2nd 2022 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).   This then helps them determine if the stock is placed for a bright or bleak future.    If you're wondering about Ecomate Holdings Berhad's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.    Is Ecomate Holdings Berhad Using Its Retained Earnings Effectively?    Ecomate Holdings Berhad's three-year median payout ratio is a pretty moderate 36%, meaning the company retains 64% of its income.  This suggests that its dividend is well covered, and given the high growth we discussed above, it looks like Ecomate Holdings Berhad is reinvesting its earnings efficiently.     While Ecomate Holdings Berhad has seen growth in its earnings, it only recently started to pay a dividend. It is most likely that the company decided to impress new and existing shareholders with a dividend.     Conclusion    In total, we are pretty happy with Ecomate Holdings Berhad's performance.      Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth.        If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices.  Let's not forget, business risk is also one of the factors that affects the price of the stock. So this is also an important area that investors need to pay attention to before making a decision on any business.    To know the 2 risks we have identified for Ecomate Holdings Berhad visit our risks dashboard for free. Valuation is complex, but we're helping make it simple.Find out whether Ecomate Holdings Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


Can Mixed Fundamentals Have A Negative Impact on EG Industries Berhad (KLSE:EG) Current Share Price Momentum?

Most readers would already be aware that EG Industries Berhad's (KLSE:EG) stock increased significantly by 23% over the past week.   But the company's key financial indicators appear to be differing across the board and that makes us question whether or not the company's current share price momentum can be maintained.      Particularly, we will be paying attention to EG Industries Berhad's  ROE today.    ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders.  In short, ROE shows the profit each dollar generates with respect to its shareholder investments.  See our latest analysis for EG Industries Berhad  How To Calculate Return On Equity?  The formula for return on equity is:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for EG Industries Berhad is:5.7% = RM24m ÷ RM421m (Based on the trailing twelve months to March 2023). The 'return' is the amount earned after tax over the last twelve months.  One way to conceptualize this is that for each MYR1 of shareholders' capital it has, the company made MYR0.06 in profit.   What Has ROE Got To Do With Earnings Growth?  So far, we've learned that ROE is a measure of a company's profitability.  Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits.  Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.  EG Industries Berhad's Earnings Growth And 5.7% ROE   When you first look at it, EG Industries Berhad's ROE doesn't look that attractive.   We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 8.4%.   Thus, the low net income growth of 2.9% seen by EG Industries Berhad over the past five years could probably be the result of the low ROE.     As a next step, we compared EG Industries Berhad'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 17% in the same period.   KLSE:EG Past Earnings Growth July 7th 2023 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).  By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await.    If you're wondering about EG Industries Berhad's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.    Is EG Industries Berhad Making Efficient Use Of Its Profits?    EG Industries Berhad doesn't pay any dividend, meaning that potentially all of its profits are being reinvested in the business.  However, this doesn't explain the low earnings growth the company has seen.  So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds.     Conclusion    Overall, we have mixed feelings about EG Industries Berhad.      Even though it appears to be retaining most of its profits, given the low ROE, investors may not be benefitting from all that reinvestment after all. The low earnings growth suggests our theory correct.       Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum.     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. Valuation is complex, but we're helping make it simple.Find out whether EG Industries Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


EG Industries Berhad Full Year 2022 Earnings: EPS: RM0.028 (vs RM0.041 in FY 2021)

EG Industries Berhad (KLSE:EG) Full Year 2022 ResultsKey Financial Results Revenue: RM1.11b (up 5.6% from FY 2021). Net income: RM10.8m (down 23% from FY 2021). Profit margin: 1.0% (down from 1.3% in FY 2021).The decrease in margin was driven by higher expenses. EPS: RM0.028 (down from RM0.041 in FY 2021).  KLSE:EG Earnings and Revenue History November 2nd 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period EG Industries Berhad's share price is broadly unchanged from a week ago.   Risk Analysis You should always think about risks. Case in point, we've spotted   4 warning signs for EG Industries Berhad  you should be aware of, and 2 of them don't sit too well with us.Valuation is complex, but we're helping make it simple.Find out whether EG Industries Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


EG Industries Berhad (KLSE:EG) Could Be Struggling To Allocate Capital

What are the early trends we should look for to identify a stock that could multiply in value over the long term?  In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing.  This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns.    However, after investigating EG Industries Berhad (KLSE:EG), we don't think it's current trends fit the mold of a multi-bagger.     Understanding Return On Capital Employed (ROCE)  For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business.  The formula for this calculation on EG Industries Berhad is:  Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.065 = RM29m ÷ (RM1.1b - RM643m) (Based on the trailing twelve months to December 2022). Therefore, EG Industries Berhad has an ROCE of 6.5%. Ultimately, that's a low return and it under-performs the Consumer Durables industry average of 11%.    See our latest analysis for EG Industries Berhad  KLSE:EG Return on Capital Employed March 14th 2023 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, revenue and cash flow of EG Industries Berhad, check out these free graphs here.  What Does the ROCE Trend For EG Industries Berhad Tell Us?  On the surface, the trend of ROCE at EG Industries Berhad doesn't inspire confidence.   To be more specific, ROCE has fallen from 8.1% over the last five years.    However, given capital employed and revenue have both increased it appears that the business is currently pursuing growth, at the consequence of short term returns.  And if the increased capital generates additional returns, the business, and thus shareholders, will benefit in the long run.     On a side note, EG Industries Berhad's current liabilities have increased over the last  five years to 59% of total assets, effectively distorting the ROCE to some degree.  Without this increase, it's likely that ROCE would be even lower than 6.5%.   What this means is that in reality, a rather large portion of the business is being funded by the likes of the company's suppliers or short-term creditors, which can bring some risks of its own.      The Bottom Line On EG Industries Berhad's ROCE  While returns have fallen for EG Industries Berhad in recent times, we're encouraged to see that sales are growing and that the business is reinvesting in its operations.        And long term investors must be optimistic going forward because the stock has returned a huge 126% to shareholders in the last  five years.   So while investors seem to be recognizing these promising trends, we would look further into this stock to make sure the other metrics justify the positive view.     EG Industries Berhad does come with some risks though, we found 4 warning signs in our investment analysis, and 2 of those are potentially serious...     While EG Industries Berhad may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. Valuation is complex, but we're helping make it simple.Find out whether EG Industries Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


Here's Why EG Industries Berhad (KLSE:EG) Has A Meaningful Debt Burden

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.'  When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin.  We can see that EG Industries Berhad (KLSE:EG) does use debt in its business.  But is this debt a concern to shareholders?  Why Does Debt Bring Risk?  Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy.  If things get really bad, the lenders can take control of the business.  While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price.  Of course, debt can be an important tool in businesses, particularly capital heavy businesses.  When we think about a company's use of debt, we first look at cash and debt together.   Check out our latest analysis for EG Industries Berhad  What Is EG Industries Berhad's Debt?  You can click the graphic below for the historical numbers, but it shows that as of March 2023 EG Industries Berhad had RM350.0m of debt, an increase on RM222.5m, over one year.    However, because it has a cash reserve of RM22.8m, its net debt is less, at about RM327.2m.  KLSE:EG Debt to Equity History June 21st 2023 How Healthy Is EG Industries Berhad's Balance Sheet?  The latest balance sheet data shows that EG Industries Berhad had liabilities of RM694.7m due within a year, and liabilities of RM51.3m falling due after that.   Offsetting these obligations, it had cash of RM22.8m as well as receivables valued at RM313.7m due within 12 months.   So it has liabilities totalling RM409.5m more than its cash and near-term receivables, combined.   This is a mountain of leverage  relative to its  market capitalization of RM422.6m.  Should its lenders demand that it shore up the balance sheet, shareholders would likely face severe dilution.    We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short).  Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.   EG Industries Berhad's debt is 4.3 times its EBITDA, and its EBIT cover its interest expense 2.7 times over.  Taken together this implies that, while we wouldn't want to see debt levels rise, we think it can handle its current leverage.        The good news is that EG Industries Berhad grew its EBIT a smooth 78% over the last twelve months.  Like the milk of human kindness that sort of growth increases resilience, making the company more capable of managing debt.      The balance sheet is clearly the area to focus on when you are analysing debt.  But ultimately the future profitability of the business will decide if EG Industries Berhad can strengthen its balance sheet over time.  So if you're focused on the future you can check out this free report showing analyst profit forecasts.  Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it.   So we clearly need to look at whether that EBIT is leading to corresponding free cash flow.    Over the last three years, EG Industries Berhad saw substantial negative free cash flow, in total.  While investors are no doubt expecting a reversal of that situation in due course, it clearly does mean its use of debt is more risky.    Our View We'd go so far as to say EG Industries Berhad's conversion of EBIT to free cash flow was disappointing.    But on the bright side, its EBIT growth rate is a good sign, and makes us more optimistic.      Overall, we think it's fair to say that EG Industries Berhad has enough debt that there are some real risks around the balance sheet.  If everything goes well that may pay off but the downside of this debt is a greater risk of permanent losses.    When analysing debt levels, the balance sheet is the obvious place to start.  But ultimately, every company can contain risks that exist outside of the balance sheet.   For example, we've discovered 3 warning signs for EG Industries Berhad (1 doesn't sit too well with us!) that you should be aware of before investing here.     If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet. Valuation is complex, but we're helping make it simple.Find out whether EG Industries Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


Individual investors invested in EG Industries Berhad (KLSE:EG) up 45% last week, insiders too were rewarded

Key Insights  The considerable ownership by individual investors in EG Industries Berhad indicates that they collectively have a greater say in management and business strategy   The top 15 shareholders own 51% of the company    32% of EG Industries Berhad is held by insiders   If you want to know who really controls EG Industries Berhad (KLSE:EG), then you'll have to look at the makeup of its share registry.  The group holding the most number of shares in the company, around 44% to be precise, is individual investors.   That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).  Individual investors gained the most after market cap touched RM512m last week, while insiders who own 32% also benefitted.      Let's take a closer look to see what the different types of shareholders can tell us about EG Industries Berhad.  Check out our latest analysis for EG Industries Berhad KLSE:EG Ownership Breakdown February 27th 2023 What Does The Lack Of Institutional Ownership Tell Us About EG Industries Berhad? Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.   There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position.  Alternatively, there might be something about the company that has kept institutional investors away.  EG Industries Berhad's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely. KLSE:EG Earnings and Revenue Growth February 27th 2023  Hedge funds don't have many shares in EG Industries Berhad.      The company's CEO Pang Kang is the largest shareholder with 8.9% of shares outstanding.       In comparison, the second and third largest shareholders hold about 6.8% and 4.7% of the stock.       Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 15 shareholders, meaning that no single shareholder has a majority interest in the ownership.    While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing.   We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.  Insider Ownership Of EG Industries Berhad While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.  The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.  Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.   It seems insiders own a significant proportion of EG Industries Berhad.   Insiders own RM163m worth of shares in the RM512m company.  We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can  click here to see if those insiders have been buying or selling.   General Public Ownership The general public, who are usually individual investors, hold a 44% stake in EG Industries Berhad.   While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.  Private Company Ownership We can see that Private Companies own 21%, of the shares on issue.  It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.   Next Steps: I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.    Be aware that  EG Industries Berhad is showing  4 warning signs in our investment analysis , and 2 of those are potentially serious...      Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.  NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.Valuation is complex, but we're helping make it simple.Find out whether EG Industries Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


Emico Holdings Berhad Second Quarter 2023 Earnings: EPS: RM0.013 (vs RM0.007 loss in 2Q 2022)

Emico Holdings Berhad (KLSE:EMICO) Second Quarter 2023 ResultsKey Financial Results Revenue: RM17.9m (up 103% from 2Q 2022). Net income: RM1.55m (up from RM818.0k loss in 2Q 2022). Profit margin: 8.7% (up from net loss in 2Q 2022). EPS: RM0.013 (up from RM0.007 loss in 2Q 2022).  KLSE:EMICO Earnings and Revenue History November 24th 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Emico Holdings Berhad shares are up 5.2% from a week ago.   Risk Analysis What about risks? Every company has them, and we've spotted   2 warning signs for Emico Holdings Berhad   (of which 1 doesn't sit too well with us!) you should know about.  Valuation is complex, but we're helping make it simple.Find out whether Emico Holdings Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Emico Holdings Berhad's (KLSE:EMICO) CEO For Now

Performance at Emico Holdings Berhad (KLSE:EMICO) has been reasonably good and CEO Francis Lim has done a decent job of steering the company in the right direction.  As shareholders go into the upcoming AGM on 22 September 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum.    However, some shareholders will still be cautious of paying the CEO excessively.      See our latest analysis for Emico Holdings Berhad  Comparing Emico Holdings Berhad's CEO Compensation With The Industry  According to our data, Emico Holdings Berhad has a market capitalization of RM38m, and paid its CEO total annual compensation worth RM692k over the year to March 2022.   We note that's an increase of 71% above last year.    We note that the salary portion, which stands at RM582.8k constitutes the majority of total compensation received by the CEO.   For comparison, other companies in the industry with market capitalizations below RM905m, reported a median total CEO compensation of RM92k.    Hence, we can conclude that Francis Lim is remunerated higher than the industry median.    Furthermore, Francis Lim directly owns RM7.7m worth of shares in the company, implying that they are deeply invested in the company's success.  Component20222021Proportion (2022)Salary RM583k RM307k 84% Other RM109k RM99k 16% Total CompensationRM692k RM406k100% On an industry level, roughly 78% of total compensation represents salary and 22% is other remuneration.    Emico Holdings Berhad is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation.    If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.  KLSE:EMICO CEO Compensation September 15th 2022 Emico Holdings Berhad's Growth  Emico Holdings Berhad has reduced its earnings per share by 85% a year over the last three years.     Its revenue is up 40% over the last year.    The decrease in EPS could be a concern for some investors.  On the other hand, the strong revenue growth suggests the business is growing.  In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching.     Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.   Has Emico Holdings Berhad Been A Good Investment? Boasting a total shareholder return of 91% over three years, Emico Holdings Berhad has done well by shareholders.  As a result, some may believe the CEO should be paid more than is normal for companies of similar size.    To Conclude...  The overall company performance has been commendable, however there are still areas for improvement.     EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.       CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company.  That's why we did our research, and identified 3 warning signs for Emico Holdings Berhad (of which 2 are potentially serious!) that you should know about in order to have a holistic understanding of the stock.    Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.  Valuation is complex, but we're helping make it simple.Find out whether Emico Holdings Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


Eurospan Holdings Berhad First Quarter 2023 Earnings: RM0.012 loss per share (vs RM0.051 loss in 1Q 2022)

Eurospan Holdings Berhad (KLSE:EUROSP) First Quarter 2023 ResultsKey Financial Results Revenue: RM14.2m (up 186% from 1Q 2022). Net loss: RM529.0k (loss narrowed by 77% from 1Q 2022). RM0.012 loss per share (improved from RM0.051 loss in 1Q 2022).  KLSE:EUROSP Earnings and Revenue History October 21st 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Eurospan Holdings Berhad's share price is broadly unchanged from a week ago.   Risk Analysis It's necessary to consider the ever-present spectre of investment risk.   We've identified 3 warning signs  with Eurospan Holdings Berhad (at least 2 which are a bit unpleasant), and understanding them should be part of your investment process.Valuation is complex, but we're helping make it simple.Find out whether Eurospan Holdings Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


FACB Industries Berhad Full Year 2022 Earnings: EPS: RM0.087 (vs RM0.017 in FY 2021)

FACB Industries Berhad (KLSE:FACBIND) Full Year 2022 ResultsKey Financial Results Revenue: RM47.8m (up 5.4% from FY 2021). Net income: RM7.30m (up 415% from FY 2021). Profit margin: 15% (up from 3.1% in FY 2021).The increase in margin was primarily driven by lower expenses. EPS: RM0.087 (up from RM0.017 in FY 2021).  KLSE:FACBIND Earnings and Revenue History October 31st 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period FACB Industries Berhad shares are down 3.7% from a week ago.   Risk Analysis Don't forget that there may still be risks. For instance, we've identified   3 warning signs for FACB Industries Berhad (2 are concerning)  you should be aware of.Valuation is complex, but we're helping make it simple.Find out whether FACB Industries Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


Is It Worth Considering FACB Industries Incorporated Berhad (KLSE:FACBIND) For Its Upcoming Dividend?

It looks like FACB Industries Incorporated Berhad (KLSE:FACBIND) is about to go ex-dividend in the next 3 days.  The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled 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.   Meaning, you will need to purchase FACB Industries Berhad's shares before the 29th of December to receive the dividend, which will be paid on the 18th of January.   The company's next dividend payment will be RM0.026 per share, on the back of last year when the company paid a total of RM0.052 to shareholders.  Looking at the last 12 months of distributions, FACB Industries Berhad has a trailing yield of approximately 4.5% on its current stock price of MYR1.16.    Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid.  That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.  View our latest analysis for FACB Industries Berhad  Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut.   FACB Industries Berhad paid out a comfortable 27% of its profit last year.    Click here to see how much of its profit FACB Industries Berhad paid out over the last 12 months. KLSE:FACBIND Historic Dividend December 25th 2022 Have Earnings And Dividends Been Growing? When earnings decline, dividend companies become much harder to analyse and own safely.   If business enters a downturn and the dividend is cut, the company could see its value fall precipitously.     That's why it's not ideal to see FACB Industries Berhad's earnings per share have been shrinking at 2.4% a year over the previous five years.       The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth.     FACB Industries Berhad has delivered 5.5% dividend growth per year on average over the past nine years.        The Bottom Line  Is FACB Industries Berhad an attractive dividend stock, or better left on the shelf?      Earnings per share have shrunk noticeably in recent years, although we like that the company has a low payout ratio. This could suggest a cut to the dividend may not be a major risk in the near future.        We think this is a pretty attractive combination, and would be interested in investigating FACB Industries Berhad more closely.    While it's tempting to invest in FACB Industries Berhad for the dividends alone, you should always be mindful of the risks involved.     For example, we've found 3 warning signs for FACB Industries Berhad (1 makes us a bit uncomfortable!) that deserve your attention before investing in the shares.   Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Valuation is complex, but we're helping make it simple.Find out whether FACB Industries Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


Returns On Capital At Federal International Holdings Berhad (KLSE:FIHB) Have Hit The Brakes

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for?  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.  If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities.    However, after investigating Federal International Holdings Berhad (KLSE:FIHB), we don't think it's current trends fit the mold of a multi-bagger.     What Is 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 Federal International Holdings Berhad is:  Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.097 = RM14m ÷ (RM199m - RM58m) (Based on the trailing twelve months to December 2022). Therefore, Federal International Holdings Berhad has an ROCE of 9.7%. Even though it's in line with the industry average of 9.8%, it's still a low return by itself.   View our latest analysis for Federal International Holdings Berhad KLSE:FIHB Return on Capital Employed June 1st 2023 Historical performance is a great place to start when researching a stock so above you can see the gauge for Federal International Holdings Berhad's ROCE against it's prior returns.  If you'd like to look at how Federal International Holdings Berhad has performed in the past in other metrics, you can view this free graph of past earnings, revenue and cash flow.   What Does the ROCE Trend For Federal International Holdings Berhad Tell Us?  In terms of Federal International Holdings Berhad's historical ROCE trend, it doesn't exactly demand attention.   The company has employed 27% more capital in the last  five years, and the returns on that capital have remained stable at 9.7%.   This poor ROCE doesn't inspire confidence right now, and with the increase in capital employed, it's evident that the business isn't deploying the funds into high return investments.    The Bottom Line On Federal International Holdings Berhad's ROCE  In conclusion, Federal International Holdings Berhad has been investing more capital into the business, but returns on that capital haven't increased.        Although the market must be expecting these trends to improve because the stock has gained 74% over the last  five years.   Ultimately, if the underlying trends persist, we wouldn't hold our breath on it being a multi-bagger going forward.     Federal International Holdings Berhad does come with some risks though, we found 3 warning signs in our investment analysis, and 1 of those is concerning...     While Federal International Holdings 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. Valuation is complex, but we're helping make it simple.Find out whether Federal International Holdings Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


Formosa Prosonic Industries Berhad Full Year 2022 Earnings: EPS: RM0.42 (vs RM0.39 in FY 2021)

Formosa Prosonic Industries Berhad (KLSE:FPI) Full Year 2022 ResultsKey Financial Results Revenue: RM984.0m (up 4.8% from FY 2021). Net income: RM106.0m (up 9.4% from FY 2021). Profit margin: 11% (in line with FY 2021). EPS: RM0.42 (up from RM0.39 in FY 2021).  KLSE:FPI Earnings and Revenue History February 24th 2023 All figures shown in the chart above are for the trailing 12 month (TTM) period Formosa Prosonic Industries Berhad shares are down 9.9% from a week ago.   Risk Analysis Be aware that  Formosa Prosonic Industries Berhad is showing  1 warning sign in our investment analysis that you should know about... Valuation is complex, but we're helping make it simple.Find out whether Formosa Prosonic Industries Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


Formosa Prosonic Industries Berhad's (KLSE:FPI) Upcoming Dividend Will Be Larger Than Last Year's

Formosa Prosonic Industries Berhad (KLSE:FPI) has announced that it will be increasing its dividend from last year's comparable payment on the 28th of April to MYR0.21.       This makes the dividend yield 6.6%, which is above the industry average.    See our latest analysis for Formosa Prosonic Industries Berhad  Formosa Prosonic Industries Berhad's Earnings Easily Cover The Distributions  If the payments aren't sustainable, a high yield for a few years won't matter that much.     Based on the last payment, Formosa Prosonic Industries Berhad was quite comfortably earning enough to cover the dividend.  This means that a large portion of its earnings are being retained to grow the business.    Looking forward, earnings per share could rise by 20.3% over the next year if the trend from the last few years continues.   If the dividend continues along recent trends, we estimate the payout ratio will be 50%, which is in the range that makes us comfortable with the sustainability of the dividend.     KLSE:FPI Historic Dividend February 26th 2023 Dividend Volatility  Although the company has a long dividend history, it has been cut at least once in the last 10 years.      Since 2013, the annual payment back then was MYR0.04, compared to the most recent full-year payment of MYR0.21.      This works out to be a compound annual growth rate (CAGR) of approximately 18% a year over that time.     Formosa Prosonic Industries Berhad has grown distributions at a rapid rate despite cutting the dividend at least once in the past. Companies that cut once often cut again, so we would be cautious about buying this stock solely for the dividend income.     The Dividend Looks Likely To Grow  With a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future.      Formosa Prosonic Industries Berhad has impressed us by growing EPS at 20% per year over the past five years.      The company doesn't have any problems growing, despite returning a lot of capital to shareholders, which is a very nice combination for a dividend stock to have.    Formosa Prosonic Industries Berhad Looks Like A Great Dividend Stock  In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability.       Earnings are easily covering distributions, and the company is generating plenty of cash.       All in all, this checks a lot of the boxes we look for when choosing an income stock.    Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach.  Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company.   For example, we've picked out 1 warning sign for Formosa Prosonic Industries Berhad that investors should know about before committing capital to this stock.   Is Formosa Prosonic Industries Berhad not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.  Valuation is complex, but we're helping make it simple.Find out whether Formosa Prosonic Industries Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


Is Weakness In Formosa Prosonic Industries Berhad (KLSE:FPI) Stock A Sign That The Market Could be Wrong Given Its Strong Financial Prospects?

With its stock down 19% over the past three months, it is easy to disregard Formosa Prosonic Industries Berhad (KLSE:FPI).   However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at.     Specifically, we decided to study Formosa Prosonic Industries Berhad's  ROE in this article.    Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money.  Put another way, it reveals the company's success at turning shareholder investments into profits.  View our latest analysis for Formosa Prosonic Industries Berhad  How To Calculate Return On Equity?  The formula for ROE is:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Formosa Prosonic Industries Berhad is:22% = RM106m ÷ RM490m (Based on the trailing twelve months to December 2022). The 'return' is the income the business earned over the last year.  That means that for every MYR1 worth of shareholders' equity, the company generated MYR0.22 in profit.   What Has ROE Got To Do With Earnings Growth?  We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings.  Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits.  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.  Formosa Prosonic Industries Berhad's Earnings Growth And 22% ROE  To start with, Formosa Prosonic Industries Berhad's ROE looks acceptable.   On comparing with the average industry ROE of 11% the company's ROE looks pretty remarkable.   This certainly adds some context to Formosa Prosonic Industries Berhad's exceptional 28% net income growth seen over the past five years.  We believe that there might also be other aspects that are positively influencing the company's earnings growth.  For instance, the company has a low payout ratio or is being managed efficiently.     Next, on comparing with the industry net income growth, we found that Formosa Prosonic Industries Berhad's growth is quite high when compared to the industry average growth of 13% in the same period, which is great to see.   KLSE:FPI Past Earnings Growth April 11th 2023 Earnings growth is a huge factor in stock valuation.  The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in.   This then helps them determine if the stock is placed for a bright or bleak future.    If you're wondering about Formosa Prosonic Industries Berhad's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.    Is Formosa Prosonic Industries Berhad Efficiently Re-investing Its Profits?   The high three-year median payout ratio of 51% (implying that it keeps only 49% of profits) for Formosa Prosonic Industries Berhad suggests that the company's growth wasn't really hampered despite it returning most of the earnings to its shareholders.      Besides, Formosa Prosonic Industries Berhad has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders.     Conclusion    On the whole, we feel that Formosa Prosonic Industries Berhad's performance has been quite good.      Especially the high ROE, Which has contributed to the impressive growth seen in earnings. Despite the company reinvesting only a small portion of its profits, it still has managed to grow its earnings so that is appreciable.       So far, we've only made a quick discussion around the company's earnings growth.  To gain further insights into Formosa Prosonic Industries Berhad's past profit growth, check out this visualization of past earnings, revenue and cash flows. Valuation is complex, but we're helping make it simple.Find out whether Formosa Prosonic Industries Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


Retail investors invested in Formosa Prosonic Industries Berhad (KLSE:FPI) copped the brunt of last week's RM72m market cap decline

Key Insights  The considerable ownership by retail investors in Formosa Prosonic Industries Berhad indicates that they collectively have a greater say in management and business strategy   51% of the business is held by the top 12 shareholders    Insider ownership in Formosa Prosonic Industries Berhad is 21%   Every investor in Formosa Prosonic Industries Berhad (KLSE:FPI) should be aware of the most powerful shareholder groups.  The group holding the most number of shares in the company, around 41% to be precise, is retail investors.   In other words, the group stands to gain the most (or lose the most) from their investment into the company.  And following last week's 10% decline in share price, retail investors suffered the most losses.     Let's delve deeper into each type of owner of Formosa Prosonic Industries Berhad, beginning with the chart below.  View our latest analysis for Formosa Prosonic Industries Berhad KLSE:FPI Ownership Breakdown May 30th 2023 What Does The Institutional Ownership Tell Us About Formosa Prosonic Industries Berhad? Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.   Formosa Prosonic Industries Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company.  This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does.  If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Formosa Prosonic Industries Berhad's earnings history below. Of course, the future is what really matters. KLSE:FPI Earnings and Revenue Growth May 30th 2023  Hedge funds don't have many shares in Formosa Prosonic Industries Berhad.      The company's largest shareholder is Wistron Corporation, with ownership of 27%.       For context, the second largest shareholder holds about 5.1% of the shares outstanding, followed by an ownership of 3.2% by the third-largest shareholder.     Chao Yuan Shih, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.        After doing some more digging, we found that the top 12 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.    While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing.   As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.  Insider Ownership Of Formosa Prosonic Industries Berhad The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least.  The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.  Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.   It seems insiders own a significant proportion of Formosa Prosonic Industries Berhad.   Insiders have a RM124m stake in this RM596m business.  We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can  click here to see if those insiders have been buying or selling.   General Public Ownership The general public, who are usually individual investors, hold a 41% stake in Formosa Prosonic Industries Berhad.   This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.  Public Company Ownership Public companies currently own 29% of Formosa Prosonic Industries Berhad stock.   We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.   Next Steps: It's always worth thinking about the different groups who own shares in a company. But to understand Formosa Prosonic Industries Berhad better, we need to consider many other factors.    To that end, you should be aware of the   1 warning sign  we've spotted with Formosa Prosonic Industries Berhad .     Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.  NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.Valuation is complex, but we're helping make it simple.Find out whether Formosa Prosonic Industries Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


G3 Global Berhad (KLSE:G3) Is In A Good Position To Deliver On Growth Plans

Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the right price.   For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery.   But while history lauds those rare successes, those that fail are often forgotten; who remembers Pets.com?  So should G3 Global Berhad (KLSE:G3) shareholders be worried about its cash burn?   In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth.  We'll start by comparing its cash burn with its cash reserves in order to calculate its cash runway.  View our latest analysis for G3 Global Berhad  SWOT Analysis for G3 Global BerhadStrength Currently debt free. Balance sheet summary for G3. WeaknessShareholders have been diluted in the past year.  See G3's current ownership breakdown. Opportunity Has sufficient cash runway for more than 3 years based on current free cash flows.Lack of analyst coverage makes it difficult to determine G3's earnings prospects.ThreatNo apparent threats visible for G3.  When Might G3 Global Berhad Run Out Of Money?  A company's cash runway is the amount of time it would take to burn through its cash reserves at its current cash burn rate.   In December 2022, G3 Global Berhad had RM27m in cash, and was debt-free.   Importantly, its cash burn was RM8.7m over the trailing twelve months.   Therefore, from December 2022 it had 3.1 years of cash runway.     A runway of this length affords the company the time and space it needs to develop the business.    You can see how its cash balance has changed over time in the image below. KLSE:G3 Debt to Equity History May 13th 2023 How Well Is G3 Global Berhad Growing? Notably, G3 Global Berhad actually ramped up its cash burn very hard and fast in the last year, by 116%, signifying heavy investment in the business.     While that's concerning on it's own, the fact that operating revenue was actually down 45% over the same period makes us positively tremulous.      Considering these two factors together makes us nervous about the direction the company seems to be heading.     In reality, this article only makes a short study of the company's growth data.   This graph of historic earnings and revenue shows how G3 Global Berhad is building its business over time.     How Easily Can G3 Global Berhad Raise Cash?  G3 Global Berhad seems to be in a fairly good position, in terms of cash burn, but we still think it's worthwhile considering how easily it could raise more money if it wanted to.    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.  We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations.  G3 Global Berhad has a market capitalisation of RM113m and burnt through RM8.7m last year, which is 7.7% 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.   How Risky Is G3 Global Berhad's Cash Burn Situation?  On this analysis of G3 Global Berhad's cash burn, we think its cash runway was reassuring, while its increasing cash burn has us a bit worried.      While we're the kind of investors who are always a bit concerned about the risks involved with cash burning companies, the metrics we have discussed in this article leave us relatively comfortable about G3 Global Berhad's situation.     Separately, we looked at different risks affecting the company and spotted 5 warning signs for G3 Global Berhad (of which 3 are a bit unpleasant!) you should know about.    Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies, and this list of stocks growth stocks (according to analyst forecasts) Valuation is complex, but we're helping make it simple.Find out whether G3 Global Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


Don't Race Out To Buy Haily Group Berhad (KLSE:HAILY) Just Because It's Going Ex-Dividend

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Haily Group Berhad (KLSE:HAILY) is about to trade ex-dividend in the next three days.  The ex-dividend date occurs one day 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.   This means that investors who purchase Haily Group Berhad's shares on or after the 23rd of March will not receive the dividend, which will be paid on the 17th of April.   The company's next dividend payment will be RM0.0056 per share. Last year, in total, the company distributed RM0.0056 to shareholders.  Looking at the last 12 months of distributions, Haily Group Berhad has a trailing yield of approximately 2.8% on its current stock price of MYR0.395.    If you buy this business for its dividend, you should have an idea of whether Haily Group Berhad's dividend is reliable and sustainable.  So we need to check whether the dividend payments are covered, and if earnings are growing.  See our latest analysis for Haily Group Berhad  If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation.   That's why it's good to see Haily Group Berhad paying out a modest 30% of its earnings.     That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow.     Click here to see how much of its profit Haily Group Berhad paid out over the last 12 months. KLSE:HAILY Historic Dividend March 19th 2023 Have Earnings And Dividends Been Growing? When earnings decline, dividend companies become much harder to analyse and own safely.   Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time.     Haily Group Berhad's earnings have collapsed faster than Wile E Coyote's schemes to trap the Road Runner; down a tremendous 66% a year over the past five years.     Given that Haily Group Berhad has only been paying a dividend for a year, there's not much of a past history to draw insight from.   The Bottom Line  Has Haily Group Berhad got what it takes to maintain its dividend payments?      Haily Group Berhad's earnings per share have fallen noticeably and, although it paid out less than half its profit as dividends last year, it paid out a disconcertingly high percentage of its cashflow, which is not a great combination.        With the way things are shaping up from a dividend perspective, we'd be inclined to steer clear of Haily Group Berhad.    With that in mind though, if the poor dividend characteristics of Haily Group Berhad don't faze you, it's worth being mindful of the risks involved with this business.     To help with this, we've discovered 5 warning signs for Haily Group Berhad (2 are a bit concerning!) that you ought to be aware of before buying the shares.   Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Valuation is complex, but we're helping make it simple.Find out whether Haily Group Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


Haily Group Berhad Third Quarter 2022 Earnings: EPS: RM0.008 (vs RM0.018 in 3Q 2021)

Haily Group Berhad (KLSE:HAILY) Third Quarter 2022 ResultsKey Financial Results Revenue: RM49.9m (up 44% from 3Q 2021). Net income: RM1.35m (down 58% from 3Q 2021). Profit margin: 2.7% (down from 9.3% in 3Q 2021). The decrease in margin was driven by higher expenses. EPS: RM0.008 (down from RM0.018 in 3Q 2021).  KLSE:HAILY Earnings and Revenue History November 20th 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Haily Group Berhad shares are up 3.1% from a week ago.   Risk Analysis Before we wrap up, we've discovered 3 warning signs for Haily Group Berhad (2 don't sit too well with us!) that you should be aware of. Valuation is complex, but we're helping make it simple.Find out whether Haily Group Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


Haily Group Berhad's (KLSE:HAILY) Stock Is Rallying But Financials Look Ambiguous: Will The Momentum Continue?

Haily Group Berhad's (KLSE:HAILY) stock is up by a considerable 11% over the past week.   However, we decided to pay attention to the company's fundamentals which don't appear to give a clear sign about the company's financial health.      Particularly, we will be paying attention to Haily Group Berhad's  ROE today.    ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders.  In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.  View our latest analysis for Haily Group Berhad  How To Calculate Return On Equity?  The formula for return on equity is:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Haily Group Berhad is:8.3% = RM6.8m ÷ RM82m (Based on the trailing twelve months to March 2023). The 'return' is the income the business earned over the last year.  Another way to think of that is that for every MYR1 worth of equity, the company was able to earn MYR0.08 in profit.   What Has ROE Got To Do With Earnings Growth?  Thus far, we have learned that ROE measures how efficiently a company is generating its profits.  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.  A Side By Side comparison of Haily Group Berhad's Earnings Growth And 8.3% ROE  When you first look at it, Haily Group Berhad's ROE doesn't look that attractive.   However, given that the company's ROE is similar to the average industry ROE of 8.4%, we may spare it some thought.   But then again, Haily Group Berhad's five year net income shrunk at a rate of 10%.  Remember, the company's ROE is a bit low to begin with.  So that's what might be causing earnings growth to shrink.     So, as a next step, we compared Haily Group Berhad's performance against the industry and were disappointed to discover that while the company has been shrinking its earnings, the industry has been growing its earnings at a rate of 12% over the last few years.   KLSE:HAILY Past Earnings Growth July 20th 2023 Earnings growth is a huge factor in stock valuation.  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 Haily Group Berhad is trading on a high P/E or a low P/E, relative to its industry.    Is Haily Group Berhad Using Its Retained Earnings Effectively?    Looking at its three-year median payout ratio of 29% (or a retention ratio of 71%) which is pretty normal, Haily Group Berhad's declining earnings is rather baffling as one would expect to see a fair bit of growth when a company is retaining a good portion of its profits.  So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds.     In addition, Haily Group Berhad only recently started paying a dividend so the management probably decided the shareholders prefer dividends even though earnings have been shrinking.     Conclusion    Overall, we have mixed feelings about Haily Group Berhad.      While the company does have a high rate of reinvestment, the low ROE means that all that reinvestment is not reaping any benefit to its investors, and moreover, its having a negative impact on the earnings growth.       Wrapping up, we would proceed with caution with this company and one way of doing that would be to look at the risk profile of the business.   To know the 4 risks we have identified for Haily Group Berhad visit our risks dashboard for free. Valuation is complex, but we're helping make it simple.Find out whether Haily Group Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


Be Sure To Check Out Homeritz Corporation Berhad (KLSE:HOMERIZ) Before It Goes Ex-Dividend

Homeritz Corporation Berhad (KLSE:HOMERIZ) stock is about to trade ex-dividend in 4 days.  Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible to receive a dividend.  The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle.   Thus, you can purchase Homeritz Corporation Berhad's shares before the 13th of February in order to receive the dividend, which the company will pay on the 10th of March.   The company's next dividend payment will be RM0.01 per share. Last year, in total, the company distributed RM0.02 to shareholders.  Calculating the last year's worth of payments shows that Homeritz Corporation Berhad has a trailing yield of 3.8% on the current share price of MYR0.53.    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 Homeritz Corporation Berhad can afford its dividend, and if the dividend could grow.  Check out our latest analysis for Homeritz Corporation Berhad  If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation.   Homeritz Corporation Berhad is paying out just 23% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events.     That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow.     The good news is it paid out just 14% of its free cash flow in the last year.      It's positive to see that Homeritz Corporation Berhad's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.   Click here to see the company's payout ratio, plus analyst estimates of its future dividends. KLSE:HOMERIZ Historic Dividend February 8th 2023 Have Earnings And Dividends Been Growing? Stocks with flat earnings can still be attractive dividend payers, but it is important to be more conservative with your approach and demand a greater margin for safety when it comes to dividend sustainability.   If business enters a downturn and the dividend is cut, the company could see its value fall precipitously.     It's not encouraging to see that Homeritz Corporation Berhad's earnings are effectively flat over the past five years.  Better than seeing them fall off a cliff, for sure, but the best dividend stocks grow their earnings meaningfully over the long run.        Homeritz Corporation Berhad is retaining more than three-quarters of its earnings and has a history of generating some growth in earnings. We think this is a reasonable combination.      Homeritz Corporation Berhad also issued more than 5% of its market cap in new stock during the past year, which we feel is likely to hurt its dividend prospects in the long run.  Trying to grow the dividend while issuing large amounts of new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill.   Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time.     In the past 10 years, Homeritz Corporation Berhad has increased its dividend at approximately 2.3% a year on average.      Final Takeaway  Should investors buy Homeritz Corporation Berhad for the upcoming dividend?      The company has barely grown earnings per share over this time, but at least it's paying out a decently low percentage of its earnings and cashflow as dividends. This could suggest management is reinvesting in future growth opportunities.  Generally we like to see both low payout ratios and strong earnings per share growth, but Homeritz Corporation Berhad is halfway there.         Overall we think this is an attractive combination and worthy of further research.    In light of that, while Homeritz Corporation Berhad has an appealing dividend, it's worth knowing the risks involved with this stock.     For instance, we've identified 4 warning signs for Homeritz Corporation Berhad (1 is significant) 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. Valuation is complex, but we're helping make it simple.Find out whether Homeritz Corporation Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.


Homeritz Corporation Berhad Full Year 2022 Earnings: EPS: RM0.096 (vs RM0.055 in FY 2021)

Homeritz Corporation Berhad (KLSE:HOMERIZ) Full Year 2022 ResultsKey Financial Results Revenue: RM243.3m (up 45% from FY 2021). Net income: RM41.0m (up 84% from FY 2021). Profit margin: 17% (up from 13% in FY 2021).The increase in margin was driven by higher revenue. EPS: RM0.096 (up from RM0.055 in FY 2021).  KLSE:HOMERIZ Earnings and Revenue History October 30th 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Homeritz Corporation Berhad Earnings Insights  Looking ahead, revenue is expected to decline by 1.6% p.a. on average during the next 2 years, while revenues in the Consumer Durables industry in Malaysia are expected to grow by 8.3%.    Performance of the Malaysian Consumer Durables industry.  The company's shares are up 1.9% from a week ago.   Risk Analysis It is worth noting though that we have found 4 warning signs for Homeritz Corporation Berhad (1 shouldn't be ignored!) that you need to take into consideration.Valuation is complex, but we're helping make it simple.Find out whether Homeritz Corporation Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This 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.