These 4 Measures Indicate That SMIS Corporation Berhad (KLSE:SMISCOR) Is Using Debt Reasonably Well

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about... and every practical investor I know worries about.'  So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company.  We can see that SMIS Corporation Berhad (KLSE:SMISCOR) does use debt in its business.  But is this debt a concern to shareholders?  What Risk Does Debt Bring?  Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price.  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, plenty of companies use debt to fund growth, without any negative consequences.  The first step when considering a company's debt levels is to consider its cash and debt together.   View our latest analysis for SMIS Corporation Berhad  What Is SMIS Corporation Berhad's Debt?  As you can see below, SMIS Corporation Berhad had RM10.7m of debt at September 2022, down from RM13.1m a year prior.    But on the other hand it also has RM11.9m in cash, leading to a RM1.16m net cash position.  KLSE:SMISCOR Debt to Equity History February 14th 2023 How Strong Is SMIS Corporation Berhad's Balance Sheet?  According to the last reported balance sheet, SMIS Corporation Berhad had liabilities of RM33.0m due within 12 months, and liabilities of RM4.22m due beyond 12 months.   Offsetting these obligations, it had cash of RM11.9m as well as receivables valued at RM47.7m due within 12 months.   So it can boast RM22.3m more liquid assets than total liabilities.   This excess liquidity is a great indication that SMIS Corporation Berhad's balance sheet is almost as strong as Fort Knox.  With this in mind one could posit that its balance sheet means the company is able to handle some adversity.     Succinctly put, SMIS Corporation Berhad boasts net cash, so it's fair to say it does not have a heavy debt load!     Although SMIS Corporation Berhad made a loss at the EBIT level, last year, it was also good to see that it generated RM24m in EBIT over the last twelve months.     The balance sheet is clearly the area to focus on when you are analysing debt.  But it is SMIS Corporation Berhad's earnings that will influence how the balance sheet holds up in the future.  So when considering debt, it's definitely worth looking at the earnings trend. Click here for an interactive snapshot.  Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it.   SMIS Corporation Berhad may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt.    Over the last year, SMIS Corporation Berhad barely recorded positive free cash flow, in total.  Some might say that's a concern, when it comes considering how easily it would be for it to down debt.    Summing Up While we empathize with investors who find debt concerning, you should keep in mind that SMIS Corporation Berhad has net cash of RM1.16m, as well as more liquid assets than liabilities.      So is SMIS Corporation Berhad's debt a risk? It doesn't seem so to us.    When analysing debt levels, the balance sheet is the obvious place to start.  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 SMIS Corporation 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 SMIS 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.


Income Investors Should Know That Tan Chong Motor Holdings Berhad (KLSE:TCHONG) Goes Ex-Dividend Soon

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Tan Chong Motor Holdings Berhad (KLSE:TCHONG) is about to go ex-dividend in just 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.   Thus, you can purchase Tan Chong Motor Holdings Berhad's shares before the 8th of December in order to receive the dividend, which the company will pay on the 23rd of December.   The company's next dividend payment will be RM0.015 per share, on the back of last year when the company paid a total of RM0.03 to shareholders.  Based on the last year's worth of payments, Tan Chong Motor Holdings Berhad has a trailing yield of 2.6% on the current stock price of MYR1.14.    If you buy this business for its dividend, you should have an idea of whether Tan Chong Motor Holdings Berhad's dividend is reliable and sustainable.  As a result, readers should always check whether Tan Chong Motor Holdings Berhad has been able to grow its dividends, or if the dividend might be cut.   Check out our latest analysis for Tan Chong Motor Holdings Berhad   Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut.   Tan Chong Motor Holdings Berhad paid out 53% of its earnings to investors last year, a normal payout level for most businesses.     A useful secondary check can be to evaluate whether Tan Chong Motor Holdings Berhad generated enough free cash flow to afford its dividend.     Luckily it paid out just 2.7% of its free cash flow last year.      It's positive to see that Tan Chong Motor Holdings 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:TCHONG Historic Dividend December 4th 2022 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.     With that in mind, we're discomforted by Tan Chong Motor Holdings Berhad's 18% per annum decline in earnings in the past five years.  When earnings per share fall, the maximum amount of dividends that can be paid also falls.       Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time.     Tan Chong Motor Holdings Berhad's dividend payments per share have declined at 13% per year on average over the past 10 years, which is uninspiring.      It's never nice to see earnings and dividends falling, but at least management has cut the dividend rather than potentially risk the company's health in an attempt to maintain it.    The Bottom Line  Is Tan Chong Motor Holdings Berhad an attractive dividend stock, or better left on the shelf?      The payout ratios are within a reasonable range, implying the dividend may be sustainable. Declining earnings are a serious concern, however, and could pose a threat to the dividend in future.        In summary, while it has some positive characteristics, we're not inclined to race out and buy Tan Chong Motor Holdings Berhad today.    With that being said, if dividends aren't your biggest concern with Tan Chong Motor Holdings Berhad, you should know about the other risks facing this business.     For example, we've found 1 warning sign for Tan Chong Motor Holdings Berhad that we recommend you consider before investing in the business.   If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks. Valuation is complex, but we're helping make it simple.Find out whether Tan Chong Motor 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.


Tan Chong Motor Holdings Berhad (KLSE:TCHONG) Is Due To Pay A Dividend Of MYR0.01

The board of Tan Chong Motor Holdings Berhad (KLSE:TCHONG) has announced that it will pay a dividend of MYR0.01 per share on the 30th of June.      The dividend yield is 1.8% based on this payment, which is a little bit low compared to the other companies in the industry.    View our latest analysis for Tan Chong Motor Holdings Berhad  Tan Chong Motor Holdings Berhad's Earnings Easily Cover The Distributions  Even a low dividend yield can be attractive if it is sustained for years on end.     Even in the absence of profits, Tan Chong Motor Holdings Berhad is paying a dividend.  The company is also yet to generate cash flow, so the dividend sustainability is definitely questionable.    Analysts expect a massive rise in earnings per share in the next year.   If the dividend extends its recent trend, estimates say the dividend could reach 8.0%, which we would be comfortable to see continuing.     KLSE:TCHONG Historic Dividend May 26th 2023 Dividend Volatility  The company's dividend history has been marked by instability, with at least one cut in the last 10 years.      Since 2013, the dividend has gone from MYR0.12 total annually to MYR0.02.      This works out to a decline of approximately 83% over that time.    A company that decreases its dividend over time generally isn't what we are looking for.    The Dividend Has Limited Growth Potential  With a relatively unstable dividend, and a poor history of shrinking dividends, it's even more important to see if EPS is growing.      Earnings per share has been sinking by 32% over the last five years.  This steep decline can indicate that the business is going through a tough time, which could constrain its ability to pay a larger dividend each year in the future.   However, the next year is actually looking up, with earnings set to rise. We would just wait until it becomes a pattern before getting too excited.     Tan Chong Motor Holdings Berhad's Dividend Doesn't Look Great  Overall, this isn't a great candidate as an income investment, even though the dividend was stable this year.      The company's earnings aren't high enough to be making such big distributions, and it isn't backed up by strong growth or consistency either.     Overall, the dividend is not reliable enough to make this a good income stock.   Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable.  At the same time, there are other factors our readers should be conscious of before pouring capital into a stock.   Without at least some growth in earnings per share over time, the dividend will eventually come under pressure either from competition or inflation.  See if the 6 analysts are forecasting a turnaround in our free collection of analyst estimates here. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Valuation is complex, but we're helping make it simple.Find out whether Tan Chong Motor 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.


Tan Chong Motor Holdings Berhad Third Quarter 2022 Earnings: EPS: RM0.011 (vs RM0.068 loss in 3Q 2021)

Tan Chong Motor Holdings Berhad (KLSE:TCHONG) Third Quarter 2022 ResultsKey Financial Results Revenue: RM729.9m (up 66% from 3Q 2021). Net income: RM6.88m (up from RM44.2m loss in 3Q 2021). Profit margin: 0.9% (up from net loss in 3Q 2021). The move to profitability was driven by higher revenue. EPS: RM0.011 (up from RM0.068 loss in 3Q 2021).  KLSE:TCHONG Earnings and Revenue Growth November 23rd 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Tan Chong Motor Holdings Berhad Earnings Insights  Looking ahead, revenue is forecast to grow 1.2% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Auto industry in Asia.    Performance of the market in Malaysia.  The company's shares are up 5.7% from a week ago.   Risk Analysis Before we wrap up, we've discovered 1 warning sign for Tan Chong Motor Holdings Berhad that you should be aware of. Valuation is complex, but we're helping make it simple.Find out whether Tan Chong Motor 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.


Tan Chong Motor Holdings Berhad's (KLSE:TCHONG) Earnings Are Weaker Than They Seem

Unsurprisingly, Tan Chong Motor Holdings Berhad's (KLSE:TCHONG) stock price was strong on the back of its healthy earnings report.  We did some analysis and think that investors are missing some details hidden beneath the profit numbers.      Our analysis indicates that TCHONG is potentially overvalued!  KLSE:TCHONG Earnings and Revenue History November 29th 2022  The Impact Of Unusual Items On Profit  For anyone who wants to understand Tan Chong Motor Holdings Berhad's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit gained from RM7.3m worth of unusual items.   We can't deny that higher profits generally leave us optimistic, but we'd prefer it if the profit were to be sustainable.  When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated.  And that's as you'd expect, given these boosts are described as 'unusual'.   If Tan Chong Motor Holdings Berhad doesn't see that contribution repeat, then all else being equal we'd expect its profit to drop over the current year.    That might leave you wondering what analysts are forecasting in terms of future profitability.  Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.   Our Take On Tan Chong Motor Holdings Berhad's Profit Performance Arguably, Tan Chong Motor Holdings Berhad's statutory earnings have been distorted by unusual items boosting profit.      Because of this, we think that it may be that Tan Chong Motor Holdings Berhad's statutory profits are better than its underlying earnings power.    On the bright side, the company showed enough improvement to book a profit this year, after losing money last year.     Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors.     So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing.    In terms of investment risks, we've identified 1 warning sign with Tan Chong Motor Holdings Berhad, and understanding it should be part of your investment process.   This note has only looked at a single factor that sheds light on the nature of Tan Chong Motor Holdings Berhad's profit.   But there are plenty of other ways to inform your opinion of a company.  For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying.  So you may wish to see this free  collection of companies boasting high return on equity, or  this list of stocks that insiders are buying. Valuation is complex, but we're helping make it simple.Find out whether Tan Chong Motor 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.


Despite Investor Losses Of 33% Over Five Years, UMW Holdings Berhad Grew Its Earnings

UMW Holdings Berhad (KLSE:UMW) shareholders should be happy to see the share price up 15% in the last quarter.    But over the last half decade, the stock has not performed well.  After all, the share price is down 37% in that time, significantly under-performing the market.      On a more encouraging note the company has added RM234m to its market cap in just the last 7 days, so let's see if we can determine what's driven the five-year loss for shareholders.   View our latest analysis for UMW Holdings Berhad   While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational.  By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.   During the unfortunate half decade during which the share price slipped, UMW Holdings Berhad actually saw its earnings per share (EPS) improve by 24% per year.  Given the share price reaction, one might suspect that EPS is not a good guide to the business performance during the period (perhaps due to a one-off loss or gain).  Alternatively, growth expectations may have been unreasonable in the past.   Because of the sharp contrast between the EPS growth rate and the share price growth, we're inclined to look to other metrics to understand the changing market sentiment around the stock.  We don't think that the 1.7% is big factor in the share price, since it's quite small, as dividends go.    In contrast to the share price, revenue has actually increased by 2.1% a year in the five year period.  A more detailed examination of the revenue and earnings may or may not explain why the share price languishes; there could be an opportunity.      You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values). KLSE:UMW Earnings and Revenue Growth December 29th 2022 UMW Holdings Berhad is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth.  So it makes a lot of sense to check out what analysts think UMW Holdings Berhad will earn in the future (free analyst consensus estimates)  What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off.  Arguably, the TSR gives a more comprehensive picture of the return generated by a stock.  In the case of UMW Holdings Berhad, it has a TSR of -33% for the last 5 years. That exceeds its share price return that we previously mentioned.  This is largely a result of its dividend payments!  A Different Perspective We're pleased to report that UMW Holdings Berhad shareholders have received a total shareholder return of 19% over one year.   And that does include the dividend.     Notably the five-year annualised TSR loss of 6% per year compares very unfavourably with the recent share price performance.  This makes us a little wary, but the business might have turned around its fortunes.        I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too.   To that end, you should be aware of the   1 warning sign  we've spotted with UMW Holdings Berhad .    If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on MY exchanges.Valuation is complex, but we're helping make it simple.Find out whether UMW 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.


Investors Will Want UMW Holdings Berhad's (KLSE:UMW) Growth In ROCE To Persist

What trends should we look for it we want to identify stocks that can multiply in value over the long term?  Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing 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.    So when we looked at UMW Holdings Berhad (KLSE:UMW) and its trend of ROCE, we really liked what we saw.     Understanding Return On Capital Employed (ROCE)  If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business.  The formula for this calculation on UMW Holdings Berhad is:  Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.063 = RM556m ÷ (RM12b - RM3.2b) (Based on the trailing twelve months to March 2023). So, UMW Holdings Berhad has an ROCE of 6.3%.  Even though it's in line with the industry average of 6.3%, it's still a low return by itself.   Check out our latest analysis for UMW Holdings Berhad KLSE:UMW Return on Capital Employed July 14th 2023 Above you can see how the current ROCE for UMW Holdings Berhad compares to its prior returns on capital, but there's only so much you can tell from the past.  If you'd like to see what analysts are forecasting going forward, you should check out our free report for UMW Holdings Berhad.  What Does the ROCE Trend For UMW Holdings Berhad Tell Us?  While in absolute terms it isn't a high ROCE, it's promising to see that it has been moving in the right direction.    The numbers show that in the last  five years, the returns generated on capital employed have grown considerably to 6.3%.  The amount of capital employed has increased too, by 31%.  This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers.    What We Can Learn From UMW Holdings Berhad's ROCE  In summary, it's great to see that UMW Holdings Berhad can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers.        Given the stock has declined 28% in the last  five years, this could be a good investment if the valuation and other metrics are also appealing.   That being the case, research into the company's current valuation metrics and future prospects seems fitting.     One final note, you should learn about the   2 warning signs  we've spotted with UMW Holdings Berhad (including 1 which is concerning) .    If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Valuation is complex, but we're helping make it simple.Find out whether UMW 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 It Time To Consider Buying UMW Holdings Berhad (KLSE:UMW)?

While UMW Holdings Berhad (KLSE:UMW) might not be the most widely known stock at the moment, it     saw a decent share price growth in the teens level on the KLSE over the last few months.    With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price.  However, could the stock still be trading at a relatively cheap price?  Today I will analyse the most recent data on UMW Holdings Berhad’s outlook and valuation to see if the opportunity still exists.     View our latest analysis for UMW Holdings Berhad  What's The Opportunity In UMW Holdings Berhad?  The share price seems sensible at the moment according to my price multiple model, where I compare the company's price-to-earnings ratio to the industry average.   In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that UMW Holdings Berhad’s ratio of 10.84x is trading slightly below its industry peers’ ratio of 12.95x, which means if you buy UMW Holdings Berhad today, you’d be paying a decent price for it. And if you believe that UMW Holdings Berhad should be trading at this level in the long run, then there’s not much of an upside to gain over and above other industry peers.    Furthermore, it seems like UMW Holdings Berhad’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s priced similarly to industry peers. This is because the stock is less volatile than the wider market given its low beta.      Can we expect growth from UMW Holdings Berhad? KLSE:UMW Earnings and Revenue Growth April 1st 2023 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares.   Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.    Though in the case of UMW Holdings Berhad, it is expected to deliver a relatively unexciting earnings growth of 1.0%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.    What This Means For You Are you a shareholder? It seems like the market has already priced in UMW’s growth outlook,  with shares trading around industry price multiples. However, there are also other important factors which we haven’t considered today, such as  the track record of its management team.  Have these factors changed since the last time you looked at UMW? Will you have enough  conviction to buy should the price fluctuate below the industry PE ratio? Are you a potential investor? If you’ve been  keeping tabs on UMW,  now may not be the most  advantageous  time to buy, given it is trading around industry price multiples. However, the positive growth outlook may mean it’s worth diving deeper into other factors in order to take advantage of the next price drop.   If you want to dive deeper into UMW Holdings Berhad, you'd also look into what risks it is currently facing.   Every company has risks, and we've spotted 1 warning sign for UMW Holdings Berhad you should know about.    If you are no longer interested in UMW Holdings Berhad, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Valuation is complex, but we're helping make it simple.Find out whether UMW 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.


UMW Holdings Berhad (KLSE:UMW) Passed Our Checks, And It's About To Pay A RM0.03 Dividend

UMW Holdings Berhad (KLSE:UMW) stock is about to trade ex-dividend in 4 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.   Thus, you can purchase UMW Holdings Berhad's shares before the 12th of December in order to receive the dividend, which the company will pay on the 15th of December.   The company's upcoming dividend is RM0.03 a share, following on from the last 12 months, when the company distributed a total of RM0.06 per share to shareholders.  Based on the last year's worth of payments, UMW Holdings Berhad stock has a trailing yield of around 1.8% on the current share price of MYR3.35.    Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid.  We need to see whether the dividend is covered by earnings and if it's growing.  Check out the opportunities and risks within the XX Auto industry.  Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable.   UMW Holdings Berhad is paying out just 19% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events.     A useful secondary check can be to evaluate whether UMW Holdings Berhad generated enough free cash flow to afford its dividend.     The good news is it paid out just 15% of its free cash flow in the last year.      It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.   Click here to see the company's payout ratio, plus analyst estimates of its future dividends. KLSE:UMW Historic Dividend December 7th 2022 Have Earnings And Dividends Been Growing? Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share.   If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke.     That's why it's comforting to see UMW Holdings Berhad's earnings have been skyrocketing, up 23% per annum for the past five years.        UMW Holdings Berhad looks like a real growth company, with earnings per share growing at a cracking pace and the company reinvesting most of its profits in the business.     The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth.     UMW Holdings Berhad has seen its dividend decline 15% per annum on average over the past 10 years, which is not great to see.      UMW Holdings Berhad is a rare case where dividends have been decreasing at the same time as earnings per share have been improving. It's unusual to see, and could point to unstable conditions in the core business, or more rarely an intensified focus on reinvesting profits.    The Bottom Line  From a dividend perspective, should investors buy or avoid UMW Holdings Berhad?       It's great that UMW Holdings Berhad is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow. It's disappointing to see the dividend has been cut at least once in the past, but as things stand now, the low payout ratio suggests a conservative approach to dividends, which we like.         UMW Holdings Berhad looks solid on this analysis overall, and we'd definitely consider investigating it more closely.    While it's tempting to invest in UMW Holdings Berhad for the dividends alone, you should always be mindful of the risks involved.     For example, we've found 1 warning sign for UMW Holdings Berhad that we recommend you consider before investing in the business.   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 UMW 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.


UMW Holdings Berhad Third Quarter 2022 Earnings: EPS: RM0.086 (vs RM0.041 loss in 3Q 2021)

UMW Holdings Berhad (KLSE:UMW) Third Quarter 2022 ResultsKey Financial Results Revenue: RM4.06b (up 101% from 3Q 2021). Net income: RM100.7m (up from RM47.9m loss in 3Q 2021). Profit margin: 2.5% (up from net loss in 3Q 2021). The move to profitability was driven by higher revenue. EPS: RM0.086 (up from RM0.041 loss in 3Q 2021).  KLSE:UMW Earnings and Revenue Growth December 4th 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period UMW Holdings Berhad Earnings Insights  Looking ahead, revenue is expected to decline by 2.9% p.a. on average during the next 3 years, while revenues in the Auto industry in Asia are expected to grow by 11%.    Performance of the market in Malaysia.  The company's share price is broadly unchanged from a week ago.   Risk Analysis It's still necessary to consider the ever-present spectre of investment risk.   We've identified 1 warning sign  with UMW Holdings Berhad, and understanding it should be part of your investment process. Valuation is complex, but we're helping make it simple.Find out whether UMW 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 UMW Holdings Berhad (KLSE:UMW) Can Manage Its Debt With Ease

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.'  So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is.  We note that UMW Holdings Berhad (KLSE:UMW) does have debt on its balance sheet.  But should shareholders be worried about its use of debt?  Why Does Debt Bring Risk?  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.   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.  Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage.  The first step when considering a company's debt levels is to consider its cash and debt together.   See our latest analysis for UMW Holdings Berhad  What Is UMW Holdings Berhad's Debt?  The image below, which you can click on for greater detail, shows that UMW Holdings Berhad had debt of RM1.55b at the end of December 2022, a reduction from RM2.73b over a year.    But it also has RM3.00b in cash to offset that, meaning it has RM1.45b net cash.  KLSE:UMW Debt to Equity History March 10th 2023 How Strong Is UMW Holdings Berhad's Balance Sheet?  We can see from the most recent balance sheet that UMW Holdings Berhad had liabilities of RM3.60b falling due within a year, and liabilities of RM1.68b due beyond that.   Offsetting these obligations, it had cash of RM3.00b as well as receivables valued at RM1.25b due within 12 months.   So its liabilities outweigh the sum of its cash and (near-term) receivables by RM1.02b.    While this might seem like a lot, it is not so bad since UMW Holdings Berhad has a  market capitalization of RM4.30b, and so it could probably strengthen its balance sheet by raising capital if it needed to.  But we definitely want to keep our eyes open to indications that its debt is bringing too much risk.    Despite its noteworthy liabilities, UMW Holdings Berhad boasts net cash, so it's fair to say it does not have a heavy debt load!     Even more impressive was the fact that UMW Holdings Berhad grew its EBIT by 162% over twelve months.  That boost will make it even easier to pay down debt going forward.      When analysing debt levels, the balance sheet is the obvious place to start.  But ultimately the future profitability of the business will decide if UMW Holdings Berhad can strengthen its balance sheet over time.  So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.   Finally, a company can only pay off debt with cold hard cash, not accounting profits.   UMW Holdings Berhad may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt.    Happily for any shareholders, UMW Holdings Berhad actually produced more free cash flow than EBIT over the last three years.  That sort of strong cash conversion gets us as excited as the crowd when the beat drops at a Daft Punk concert.    Summing Up While UMW Holdings Berhad does have more liabilities than liquid assets, it also has net cash of RM1.45b.     The cherry on top was that in converted 118% of that EBIT to free cash flow, bringing in RM694m.     So we don't think UMW Holdings Berhad's use of debt is risky.    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.   To that end, you should be aware of the   1 warning sign  we've spotted with UMW Holdings Berhad .     Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today. Valuation is complex, but we're helping make it simple.Find out whether UMW 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.


Alliance Bank Malaysia Berhad Reports Second Quarter 2023 Earnings

Alliance Bank Malaysia Berhad (KLSE:ABMB) Second Quarter 2023 ResultsKey Financial Results Revenue: RM406.5m (down 3.1% from 2Q 2022). Net income: RM158.4m (down 8.3% from 2Q 2022). Profit margin: 39% (down from 41% in 2Q 2022).  KLSE:ABMB Earnings and Revenue Growth November 30th 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Alliance Bank Malaysia Berhad Earnings Insights  Looking ahead, revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Banks industry in Malaysia.    Performance of the Malaysian Banks industry.  The company's share price is broadly unchanged from a week ago.   Risk Analysis Before you take the next step you should know about the 2 warning signs for Alliance Bank Malaysia Berhad (1 shouldn't be ignored!) that we have uncovered. Valuation is complex, but we're helping make it simple.Find out whether Alliance Bank Malaysia 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.


Alliance Bank Malaysia Berhad's (KLSE:ABMB) three-year total shareholder returns outpace the underlying earnings growth

While Alliance Bank Malaysia Berhad (KLSE:ABMB) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 10% in the last quarter.    But that doesn't undermine the rather lovely longer-term return, if you measure over the last three years.  In three years the stock price has launched 109% higher: a great result.  After a run like that some may not be surprised to see prices moderate.  The thing to consider is whether the underlying business is doing well enough to support the current price.      Since the long term performance has been good but there's been a recent pullback of 5.1%, let's check if the fundamentals match the share price.   See our latest analysis for Alliance Bank Malaysia Berhad   In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business.  One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.   Alliance Bank Malaysia Berhad was able to grow its EPS at 14% per year over three years, sending the share price higher.   In comparison, the 28% per year gain in the share price outpaces the EPS growth.  This indicates that the market is feeling more optimistic on the stock, after the last few years of progress.  It's not unusual to see the market 're-rate' a stock, after a few years of growth.   You can see how EPS has changed over time in the image below (click on the chart to see the exact values). KLSE:ABMB Earnings Per Share Growth March 14th 2023 We know that Alliance Bank Malaysia Berhad has improved its bottom line lately, but is it going to grow revenue?  If you're interested, you could check this free report showing consensus revenue forecasts.  What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested.  So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return.  We note that for Alliance Bank Malaysia Berhad the TSR over the last 3 years was 134%, which is better than the share price return mentioned above.  This is largely a result of its dividend payments!  A Different Perspective It's nice to see that Alliance Bank Malaysia Berhad shareholders have received a total shareholder return of 4.0% over the last year.   That's including the dividend.     That certainly beats the loss of about 1.2% per year over the last half decade.  We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business.        I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too.   Case in point: We've spotted   2 warning signs for Alliance Bank Malaysia Berhad  you should be aware of, and 1 of them makes us a bit uncomfortable.     Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on MY exchanges.Valuation is complex, but we're helping make it simple.Find out whether Alliance Bank Malaysia 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.


Alliance Bank Malaysia Berhad's (KLSE:ABMB) Upcoming Dividend Will Be Larger Than Last Year's

Alliance Bank Malaysia Berhad (KLSE:ABMB) has announced that it will be increasing its dividend from last year's comparable payment on the 28th of December to MYR0.12.       This will take the dividend yield to an attractive 6.3%, providing a nice boost to shareholder returns.     Our analysis indicates that ABMB is potentially undervalued!   Alliance Bank Malaysia Berhad's Earnings Will Easily Cover The Distributions  A big dividend yield for a few years doesn't mean much if it can't be sustained.   Having paid out dividends for 5 years, Alliance Bank Malaysia Berhad has a good history of paying out a part of its earnings to shareholders.   Taking data from its last earnings report, calculating for the company's payout ratio of 55%shows that Alliance Bank Malaysia Berhad would be able to pay its last dividend without pressure on the balance sheet.     The next 3 years are set to see EPS grow by 21.5%.   Analysts forecast the future payout ratio could be 47% over the same time horizon, which is a number we think the company can maintain.      KLSE:ABMB Historic Dividend December 1st 2022 Alliance Bank Malaysia Berhad's Dividend Has Lacked Consistency  Alliance Bank Malaysia Berhad has been paying dividends for a while, but the track record isn't stellar.  If the company cuts once, it definitely isn't argument against the possibility of it cutting in the future.      The dividend has gone from an annual total of MYR0.17 in 2017 to the most recent total annual payment of MYR0.24.      This works out to be a compound annual growth rate (CAGR) of approximately 7.1% a year over that time.     We have seen cuts in the past, so while the growth looks promising we would be a little bit cautious about its track record.     The Dividend's Growth Prospects Are Limited  With a relatively unstable dividend, it's even more important to see if earnings per share is growing.      Earnings has been rising at 4.1% per annum over the last five years, which admittedly is a bit slow.      The company has been growing at a pretty soft 4.1% per annum, and is paying out quite a lot of its earnings to shareholders.  This could mean the dividend doesn't have the growth potential we look for going into the future.    In Summary  Overall, this is a reasonable dividend, and it being raised is an added bonus.      The dividend has been at reasonable levels historically, but that hasn't translated into a consistent payment.     This looks like it could be a good dividend stock going forward, but we would note that the payout ratio has been at higher levels in the past so it could happen again.   It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one.  However, there are other things to consider for investors when analysing stock performance.   Case in point: We've spotted 2 warning signs for Alliance Bank Malaysia Berhad (of which 1 doesn't sit too well with us!) you should know about.    Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Valuation is complex, but we're helping make it simple.Find out whether Alliance Bank Malaysia 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.


Painful week for private companies invested in Alliance Bank Malaysia Berhad (KLSE:ABMB) after 4.1% drop, institutions also suffered losses

A look at the shareholders of Alliance Bank Malaysia Berhad (KLSE:ABMB) can tell us which group is most powerful.  We can see that private companies own the lion's share in the company with 44% ownership.  Put another way, the group faces the maximum upside potential (or downside risk).  Following a 4.1% decrease in the stock price last week, private companies suffered the most losses, but institutions who own 30% stock also took a hit.      In the chart below, we zoom in on the different ownership groups of Alliance Bank Malaysia Berhad.  If you're not interested in researching ABMB's ownership structure, we have a free list of interesting investing ideas  to potentially inspire your next investment! KLSE:ABMB Ownership Breakdown September 27th 2022 What Does The Institutional Ownership Tell Us About Alliance Bank Malaysia Berhad? Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.   Alliance Bank Malaysia 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.  When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Alliance Bank Malaysia Berhad's historic earnings and revenue below, but keep in mind there's always more to the story. KLSE:ABMB Earnings and Revenue Growth September 27th 2022  Hedge funds don't have many shares in Alliance Bank Malaysia Berhad.      The company's largest shareholder is Vertical Theme Sdn. Bhd., with ownership of 29%.       In comparison, the second and third largest shareholders hold about 9.9% and 4.8% of the stock.     On looking further, we found that 52% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of 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.   There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.  Insider Ownership Of Alliance Bank Malaysia Berhad The definition of an insider can differ slightly between different countries, but members of the board of directors always count.  Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.  I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.   Our data suggests that insiders own under 1% of Alliance Bank Malaysia Berhad in their own names.   However, it's possible that insiders might have an indirect interest through a more complex structure.    It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own RM2.3m worth of shares.  It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.   General Public Ownership The general public-- including retail investors -- own 26% stake in the company, and hence can't easily be ignored.   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.  Private Company Ownership We can see that Private Companies own 44%, of the shares on issue.  Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.   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.    Consider for instance, the ever-present spectre of investment risk.   We've identified 2 warning signs  with Alliance Bank Malaysia Berhad (at least 1 which is significant)  , and understanding them should be part of your investment process.     Ultimately the future is most important. You can access this free report on analyst forecasts for the company.  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 Alliance Bank Malaysia 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.


AFFIN Bank Berhad Full Year 2022 Earnings: EPS: RM0.092 (vs RM0.25 in FY 2021)

AFFIN Bank Berhad (KLSE:AFFIN) Full Year 2022 ResultsKey Financial Results Revenue: RM1.79b (down 12% from FY 2021). Net income: RM174.8m (down 67% from FY 2021). Profit margin: 9.8% (down from 26% in FY 2021). The decrease in margin was primarily driven by lower revenue. EPS: RM0.092 (down from RM0.25 in FY 2021).  KLSE:AFFIN Earnings and Revenue Growth February 28th 2023 All figures shown in the chart above are for the trailing 12 month (TTM) period AFFIN Bank Berhad Earnings Insights  Looking ahead, revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Banks industry in Malaysia.    Performance of the Malaysian Banks industry.  The company's share price is broadly unchanged from a week ago.   Risk Analysis Be aware that  AFFIN Bank Berhad is showing  3 warning signs in our investment analysis that you should know about... Valuation is complex, but we're helping make it simple.Find out whether AFFIN Bank 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.


AFFIN Bank Berhad (KLSE:AFFIN) surges 12%; public companies who own 45% shares profited along with institutions

Every investor in AFFIN Bank Berhad (KLSE:AFFIN) should be aware of the most powerful shareholder groups.  We can see that public companies own the lion's share in the company with 45% ownership.   That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).  Following a 12% increase in the stock price last week, public companies profited the most, but institutions who own 43% stock also stood to gain from the increase.      Let's take a closer look to see what the different types of shareholders can tell us about AFFIN Bank Berhad.   Check out our latest analysis for AFFIN Bank Berhad  KLSE:AFFIN Ownership Breakdown October 19th 2022 What Does The Institutional Ownership Tell Us About AFFIN Bank Berhad? Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.   We can see that AFFIN Bank Berhad does have institutional investors; and they hold a good portion of the company's stock.  This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong.  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 AFFIN Bank Berhad's earnings history below. Of course, the future is what really matters. KLSE:AFFIN Earnings and Revenue Growth October 19th 2022  We note that hedge funds don't have a meaningful investment in AFFIN Bank Berhad.      Our data shows that Lembaga Tabung Angkatan Tentera (LTAT) is the largest shareholder with 33% of shares outstanding.       For context, the second largest shareholder holds about 24% of the shares outstanding, followed by an ownership of 21% by the third-largest shareholder.     After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.    While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance.   Quite a few analysts cover the stock, so you could look into forecast growth quite easily.  Insider Ownership Of AFFIN Bank 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.  Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.  Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.   Our data suggests that insiders own under 1% of AFFIN Bank Berhad in their own names.   It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around RM18m worth of shares (at current prices).  Arguably, recent buying and selling is just as important to consider. You can  click here to see if insiders have been buying or selling.   General Public Ownership The general public, who are usually individual investors, hold a 12% stake in AFFIN Bank 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 We can see that public companies hold 45% of the AFFIN Bank Berhad shares on issue.  It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.   Next Steps: It's always worth thinking about the different groups who own shares in a company. But to understand AFFIN Bank Berhad better, we need to consider many other factors.    Be aware that  AFFIN Bank Berhad is showing  3 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...      But ultimately  it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.  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 AFFIN Bank 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.


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If EPS Growth Is Important To You, AMMB Holdings Berhad (KLSE:AMBANK) Presents An Opportunity

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors.  But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.'  Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.  If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in AMMB Holdings Berhad (KLSE:AMBANK). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing.  See our latest analysis for AMMB Holdings Berhad   AMMB Holdings Berhad's Earnings Per Share Are Growing  Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price.  Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS.   AMMB Holdings Berhad managed to grow EPS by 6.9% per year, over three years.   That might not be particularly high growth, but it does show that per-share earnings are moving steadily in the right direction.    It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth.   Our analysis has highlighted that AMMB Holdings Berhad's revenue from operations did not account for all of their revenue in the previous 12 months, so our analysis of its margins might not accurately reflect the underlying business.     AMMB Holdings Berhad maintained stable EBIT margins over the last year, all while growing revenue 2.5% to RM4.2b.  That's progress.    In the chart below, you can see how the company has grown earnings and revenue, over time.  For finer detail, click on the image. KLSE:AMBANK Earnings and Revenue History July 10th 2023  Fortunately, we've got access to analyst forecasts of AMMB Holdings Berhad's future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting. Are AMMB Holdings Berhad Insiders Aligned With All Shareholders?  It's pleasing to see company leaders with putting their money on the line, so to speak, because it increases alignment of incentives between the people running the business, and its true owners.  AMMB Holdings Berhad followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group.     Indeed, they hold RM206m worth of its stock.  That's a lot of money, and no small incentive to work hard.   Despite being just 1.7% of the company, the value of that investment is enough to show insiders have plenty riding on the venture.     Is AMMB Holdings Berhad Worth Keeping An Eye On?  One important encouraging feature of AMMB Holdings Berhad is that it is growing profits.   If that's not enough on its own, there is also the rather notable levels of insider ownership.   These two factors are a huge highlight for the company which should be a strong contender your watchlists.     You still need to take note of risks, for example - AMMB Holdings Berhad has   2 warning signs  (and 1 which is significant)  we think you should know about.   The beauty of investing is that you can invest in almost any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here is a list of companies with insider buying in the last three months. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.Valuation is complex, but we're helping make it simple.Find out whether AMMB 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.


My E.G. Services Berhad's Three-Year Earnings Growth Trails Decent Shareholder Returns

By buying an index fund, investors can approximate the average market return.  But many of us dare to dream of bigger returns, and build a portfolio ourselves.  Just take a look at My E.G. Services Berhad (KLSE:MYEG), which is up 62%, over three years, soundly beating the market decline of 0.1% (not including dividends).     Since it's been a strong week for My E.G. Services Berhad shareholders, let's have a look at trend of the longer term fundamentals.    View our latest analysis for My E.G. Services Berhad   To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...'  One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.   My E.G. Services Berhad was able to grow its EPS at 17% per year over three years, sending the share price higher.    Notably, the 18% average annual share price gain matches up nicely with the EPS growth rate.   This suggests that sentiment and expectations have not changed drastically.  Rather, the share price has approximately tracked EPS growth.   You can see how EPS has changed over time in the image below (click on the chart to see the exact values). KLSE:MYEG Earnings Per Share Growth February 2nd 2023 We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies.  But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward.  Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..  What About Dividends? As well as measuring the share price return, investors should also consider the total shareholder return (TSR).  The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs.  Arguably, the TSR gives a more comprehensive picture of the return generated by a stock.  As it happens, My E.G. Services Berhad's TSR for the last 3 years was 70%, which exceeds the share price return mentioned earlier.  And there's no prize for guessing that the dividend payments largely explain the divergence!  A Different Perspective Investors in My E.G. Services Berhad had a tough year, with a total loss of 3.1% (including dividends), against a market gain of about 3.2%.  Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested.    Unfortunately, longer term shareholders are suffering worse, given the loss of 4% doled out over the last five years.  We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm.       While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important.   For example, we've discovered 1 warning sign for My E.G. Services Berhad that you should be aware of before investing here.    We will like My E.G. Services Berhad better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on MY exchanges.Valuation is complex, but we're helping make it simple.Find out whether My E.G. Services 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 Ran A Stock Scan For Earnings Growth And My E.G. Services Berhad (KLSE:MYEG) Passed With Ease

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit.  But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.'  Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.  Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like My E.G. Services Berhad (KLSE:MYEG). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide My E.G. Services Berhad with the means to add long-term value to shareholders.  View our latest analysis for My E.G. Services Berhad   How Fast Is My E.G. Services Berhad Growing?  If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow.  Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS.   Over the last three years, My E.G. Services Berhad has grown EPS by 16% per year.   That's a pretty good rate, if the company can sustain it.    Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market.    My E.G. Services Berhad's EBIT margins have actually improved by 11.1 percentage points in the last year, to reach 56%, but, on the flip side, revenue was down 9.8%.  While not disastrous, these figures could be better.    You can take a look at the company's revenue and earnings growth trend, in the chart below.  Click on the chart to see the exact numbers. KLSE:MYEG Earnings and Revenue History April 2nd 2023  While we live in the present moment, there's little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for My E.G. Services Berhad? Are My E.G. Services Berhad Insiders Aligned With All Shareholders?  It should give investors a sense of security owning shares in a company if insiders also own shares, creating a close alignment their interests.  So it is good to see that My E.G. Services Berhad insiders have a significant amount of capital invested in the stock.     Notably, they have an enviable stake in the company, worth RM752m.   Coming in at 13% of the business, that holding gives insiders a lot of influence, and plenty of reason to generate value for shareholders.  Very encouraging.     It means a lot to see insiders invested in the business, but shareholders may be wondering if remuneration policies are in their best interest.  Well, based on the CEO pay, you'd argue that they are indeed.    Our analysis has discovered that the median total compensation for the CEOs of companies like My E.G. Services Berhad with market caps between RM4.4b and RM14b is about RM2.2m.   The My E.G. Services Berhad CEO received total compensation of only RM206k in the year to December 2021.  This total may indicate that the CEO is sacrificing take home pay for performance-based benefits, ensuring that their motivations are synonymous with strong company results.   CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders.  It can also be a sign of good governance, more generally.   Should You Add My E.G. Services Berhad To Your Watchlist?  As previously touched on, My E.G. Services Berhad is a growing business, which is encouraging.   The growth of EPS may be the eye-catching headline for My E.G. Services Berhad, but there's more to bring joy for shareholders.  Boasting both modest CEO pay and considerable insider ownership, you'd argue this one is worthy of the watchlist, at least.     It's still necessary to consider the ever-present spectre of investment risk.   We've identified 2 warning signs  with My E.G. Services Berhad (at least 1 which is potentially serious)  , and understanding these should be part of your investment process.   Although My E.G. Services Berhad certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see insider buying, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.  Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.Valuation is complex, but we're helping make it simple.Find out whether My E.G. Services 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 We Think Nextgreen Global Berhad (KLSE:NGGB) Is Well Worth Watching

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors.  But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.'  While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.  So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Nextgreen Global Berhad (KLSE:NGGB). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business.  Check out our latest analysis for Nextgreen Global Berhad   How Fast Is Nextgreen Global Berhad Growing Its Earnings Per Share?  Over the last three years, Nextgreen Global Berhad has grown earnings per share (EPS) at as impressive rate from a relatively low point, resulting in a three year percentage growth rate that isn't particularly indicative of expected future performance.  As a result, we'll zoom in on growth over the last year, instead.    It's good to see that Nextgreen Global Berhad's EPS has grown from RM0.014 to RM0.016 over twelve months.  That's a 15% gain; respectable growth in the broader scheme of things.   Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth.    Unfortunately, revenue is down and so are margins.  Shareholders will be hoping for a change in fortunes if they're looking for profit growth.    The chart below shows how the company's bottom and top lines have progressed over time.  For finer detail, click on the image. KLSE:NGGB Earnings and Revenue History April 4th 2023  Nextgreen Global Berhad isn't a huge company, given its market capitalisation of RM817m. That makes it extra important to check on its balance sheet strength. Are Nextgreen Global Berhad Insiders Aligned With All Shareholders?  Many consider high insider ownership to be a strong sign of alignment between the leaders of a company and the ordinary shareholders.  So those who are interested in Nextgreen Global Berhad will be delighted to know that insiders have shown their belief, holding a large proportion of the company's shares.    Owning 43% of the company, insiders have plenty riding on the performance of the the share price.  Shareholders and speculators should be reassured by this kind of alignment, as it suggests the business will be run for the benefit of shareholders.    With that sort of holding, insiders have about RM351m riding on the stock, at current prices.  So there's plenty there to keep them focused!    While it's always good to see some strong conviction in the company from insiders through heavy investment, it's also important for shareholders to ask if management compensation policies are reasonable.  Our quick analysis into CEO remuneration would seem to indicate they are.    Our analysis has discovered that the median total compensation for the CEOs of companies like Nextgreen Global Berhad with market caps between RM440m and RM1.8b is about RM765k.   Nextgreen Global Berhad's CEO took home a total compensation package worth RM463k in the year leading up to December 2021.  That is actually below the median for CEO's of similarly sized companies.   CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders.  It can also be a sign of a culture of integrity, in a broader sense.   Does Nextgreen Global Berhad Deserve A Spot On Your Watchlist?  One positive for Nextgreen Global Berhad is that it is growing EPS. That's nice to see.   The fact that EPS is growing is a genuine positive for Nextgreen Global Berhad, but the pleasant picture gets better than that.  Boasting both modest CEO pay and considerable insider ownership, you'd argue this one is worthy of the watchlist, at least.     It's still necessary to consider the ever-present spectre of investment risk.   We've identified 3 warning signs  with Nextgreen Global Berhad (at least 1 which doesn't sit too well with us)  , and understanding these should be part of your investment process.   Although Nextgreen Global Berhad certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see insider buying, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.  Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.Valuation is complex, but we're helping make it simple.Find out whether Nextgreen 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.


Insiders were the biggest winners as Nextgreen Global Berhad's (KLSE:NGGB) market cap grew by RM159m last week

To get a sense of who is truly in control of Nextgreen Global Berhad (KLSE:NGGB), it is important to understand the ownership structure of the business.  With 44% stake, individual insiders possess the maximum shares in the company.   In other words, the group stands to gain the most (or lose the most) from their investment into the company.  As a result, insiders were the biggest beneficiaries of last week’s 27% gain.     In the chart below, we zoom in on the different ownership groups of Nextgreen Global Berhad.  View our latest analysis for Nextgreen Global Berhad KLSE:NGGB Ownership Breakdown February 16th 2023 What Does The Institutional Ownership Tell Us About Nextgreen Global Berhad? Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.   As you can see, institutional investors have a fair amount of stake in Nextgreen Global Berhad.  This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes.  When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Nextgreen Global Berhad's historic earnings and revenue below, but keep in mind there's always more to the story. KLSE:NGGB Earnings and Revenue Growth February 16th 2023  Nextgreen Global Berhad is not owned by hedge funds.      Our data shows that Kong Gan is the largest shareholder with 18% of shares outstanding.       For context, the second largest shareholder holds about 11% of the shares outstanding, followed by an ownership of 6.5% by the third-largest shareholder.     Thiam Lim, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.        We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.     While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance.   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 Nextgreen Global 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.  Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.  I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.   Our most recent data indicates that insiders own a reasonable proportion of Nextgreen Global Berhad.   Insiders own RM332m worth of shares in the RM746m company.  This may suggest that the founders still own a lot of shares. You can  click here to see if they have been buying or selling.   General Public Ownership The general public-- including retail investors -- own 37% stake in the company, and hence can't easily be ignored.   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 6.3%, of the shares on issue.  It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.   Next Steps: It's always worth thinking about the different groups who own shares in a company. But to understand Nextgreen Global Berhad better, we need to consider many other factors.    Case in point: We've spotted   2 warning signs for Nextgreen Global Berhad  you should be aware of, and 1 of them is a bit concerning.      Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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 Nextgreen 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.