Are Financials Responsible For Ancom Nylex Berhad Stock's Increase?

Ancom Nylex Berhad's (KLSE:ANCOMNY) stock is up by a considerable 24% over the past month.   Given that stock prices are usually aligned with a company's financial performance in the long-term, we decided to study its financial indicators more closely to see if they had a hand to play in the recent price move.      Particularly, we will be paying attention to Ancom Nylex Berhad's  ROE today.    Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money.  Simply put, it is used to assess the profitability of a company in relation to its equity capital.  See our latest analysis for Ancom Nylex Berhad  How Do You Calculate Return On Equity?  ROE can be calculated by using the formula:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Ancom Nylex Berhad is:8.9% = RM40m ÷ RM453m (Based on the trailing twelve months to August 2022). The 'return' is the income the business earned over the last year.  Another way to think of that is that for every MYR1 worth of equity, the company was able to earn MYR0.09 in profit.   What Is The Relationship Between ROE And Earnings Growth?  So far, we've learned that ROE is a measure of a company's profitability.  Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits.  Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.  Ancom Nylex Berhad's Earnings Growth And 8.9% ROE  On the face of it, Ancom Nylex Berhad's ROE is not much to talk about.   However, its ROE is similar to the industry average of 8.6%, so we won't completely dismiss the company.   Moreover, we are quite pleased to see that Ancom Nylex Berhad's net income grew significantly at a rate of 30% over the last five years.  Given the slightly low ROE, it is likely that there could be some other aspects that are driving this growth.  For instance, the company has a low payout ratio or is being managed efficiently.     We then compared Ancom Nylex Berhad's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 23% in the same period.   KLSE:ANCOMNY Past Earnings Growth January 13th 2023 Earnings growth is an important metric to consider when valuing a stock.   The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in.   This then helps them determine if the stock is placed for a bright or bleak future.    Is Ancom Nylex Berhad fairly valued compared to other companies? These 3 valuation measures might help you decide.    Is Ancom Nylex Berhad Making Efficient Use Of Its Profits?    Ancom Nylex Berhad doesn't pay any dividend currently which essentially means that it has been reinvesting all of its profits into the business. This definitely contributes to the high earnings growth number that we discussed above.     Summary    On the whole, we do feel that Ancom Nylex Berhad has some positive attributes.      Despite its low rate of return, the fact that the company reinvests a very high portion of its profits into its business, no doubt contributed to its high earnings growth.       That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth.     To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Valuation is complex, but we're helping make it simple.Find out whether Ancom Nylex 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 Ancom Nylex Berhad (KLSE:ANCOMNY) Can Stay On Top Of Its Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.'  It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses.  We note that Ancom Nylex Berhad (KLSE:ANCOMNY) does have debt on its balance sheet.  But the more important question is: how much risk is that debt creating?  When Is Debt A Problem?  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.   Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers.  While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price.  Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return.  When we examine debt levels, we first consider both cash and debt levels, together.   Check out our latest analysis for Ancom Nylex Berhad  What Is Ancom Nylex Berhad's Debt?  As you can see below, at the end of November 2022, Ancom Nylex Berhad had RM412.2m of debt, up from RM324.4m a year ago. Click the image for more detail.    However, it does have RM141.6m in cash offsetting this, leading to net debt of about RM270.7m.  KLSE:ANCOMNY Debt to Equity History March 17th 2023 A Look At Ancom Nylex Berhad's Liabilities  Zooming in on the latest balance sheet data, we can see that Ancom Nylex Berhad had liabilities of RM577.5m due within 12 months and liabilities of RM117.5m due beyond that.    On the other hand, it had cash of RM141.6m and RM389.4m worth of receivables due within a year.   So its liabilities outweigh the sum of its cash and (near-term) receivables by RM163.9m.    Of course, Ancom Nylex Berhad has a  market capitalization of RM996.7m, so these liabilities are probably manageable.  However, we do think it is worth keeping an eye on its balance sheet strength, as it may change over time.    We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover).  This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.   With a debt to EBITDA ratio of 1.9, Ancom Nylex Berhad uses debt artfully but responsibly.  And the alluring interest cover (EBIT of 7.6 times interest expense) certainly does not do anything to dispel this impression.        Importantly, Ancom Nylex Berhad grew its EBIT by 56% over the last twelve months, and that growth will make it easier to handle its debt.      There's no doubt that we learn most about debt from the balance sheet.  But it is future earnings, more than anything, that will determine Ancom Nylex Berhad's ability to maintain a healthy balance sheet going forward.  So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.   Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash.   So we always check how much of that EBIT is translated into free cash flow.    Looking at the most recent three years, Ancom Nylex Berhad recorded free cash flow of 45% of its EBIT, which is weaker than we'd expect.  That's not great, when it comes to paying down debt.    Our View Happily, Ancom Nylex Berhad's impressive EBIT growth rate implies it has the upper hand on its debt.   And its interest cover is good too.      When we consider the range of factors above, it looks like Ancom Nylex Berhad is pretty sensible with its use of debt.  That means they are taking on a bit more risk, in the hope of boosting shareholder returns.    The balance sheet is clearly the area to focus on when you are analysing debt.  But ultimately, every company can contain risks that exist outside of the balance sheet.   For instance, we've identified   2 warning signs for Ancom Nylex Berhad  that you should be aware of.     If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay. Valuation is complex, but we're helping make it simple.Find out whether Ancom Nylex 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.


Ann Joo Resources Berhad (KLSE:ANNJOO) shareholder returns have been stellar, earning 139% in 3 years

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero.  But if you buy shares in a really great company, you can more than double your money.  For example, the Ann Joo Resources Berhad (KLSE:ANNJOO) share price has soared 126% in the last three years.  Most would be happy with that.    Also pleasing for shareholders was the 18% gain in the last three months.       On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.   See our latest analysis for Ann Joo Resources Berhad   Given that Ann Joo Resources Berhad didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development.  When a company doesn't make profits, we'd generally expect to see good revenue growth.  That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.   Over the last three years Ann Joo Resources Berhad has grown its revenue at 14% annually.   That's a very respectable growth rate.   It's fair to say that the market has acknowledged the growth by pushing the share price up 31% per year.  It's hard to value pre-profit businesses, but it seems like the market has become a lot more optimistic about this one!  It would be worth thinking about when profits will flow, since that milestone will attract more attention.       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:ANNJOO Earnings and Revenue Growth March 30th 2023 It's probably worth noting that the CEO is paid less than the median at similar sized companies.  It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years.   You can see what analysts are predicting for Ann Joo Resources Berhad in this interactive graph of future profit estimates.  What About The Total Shareholder Return (TSR)? We've already covered Ann Joo Resources Berhad's share price action, but we should also mention its total shareholder return (TSR).  The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs.    Dividends have been really beneficial for Ann Joo Resources Berhad shareholders, and that cash payout contributed to why its TSR of 139%, over the last 3 years, is better than the share price return.    A Different Perspective While the broader market lost about 3.7% in the twelve months, Ann Joo Resources Berhad shareholders did even worse, losing 23%.  However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity.     Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 8% per year over five years.  Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround.        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.   Case in point: We've spotted   1 warning sign for Ann Joo Resources Berhad  you should be aware of.     But note: Ann Joo Resources Berhad may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges.Valuation is complex, but we're helping make it simple.Find out whether Ann Joo Resources Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


Ann Joo Resources Berhad Third Quarter 2022 Earnings: RM0.24 loss per share (vs RM0.13 profit in 3Q 2021)

Ann Joo Resources Berhad (KLSE:ANNJOO) Third Quarter 2022 ResultsKey Financial Results Revenue: RM760.8m (up 88% from 3Q 2021). Net loss: RM133.5m (down by 293% from RM69.1m profit in 3Q 2021). RM0.24 loss per share (down from RM0.13 profit in 3Q 2021).  KLSE:ANNJOO Earnings and Revenue Growth December 4th 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Ann Joo Resources Berhad Earnings Insights  Looking ahead, revenue is expected to decline by 10% p.a. on average during the next 3 years, while revenues in the Metals and Mining industry in Malaysia are expected to grow by 6.7%.    Performance of the Malaysian Metals and Mining industry.  The company's shares are down 2.7% from a week ago.   Risk Analysis You still need to take note of risks, for example - Ann Joo Resources Berhad has   2 warning signs  (and 1 which is a bit unpleasant)  we think you should know about. Valuation is complex, but we're helping make it simple.Find out whether Ann Joo Resources Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


Health Check: How Prudently Does Ann Joo Resources Berhad (KLSE:ANNJOO) Use Debt?

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.  Importantly, Ann Joo Resources Berhad (KLSE:ANNJOO) does carry debt.  But should shareholders be worried about its use of debt?  Why Does Debt Bring Risk?  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.  Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers.  While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price.  Of course, debt can be an important tool in businesses, particularly capital heavy businesses.  When we think about a company's use of debt, we first look at cash and debt together.   View our latest analysis for Ann Joo Resources Berhad  What Is Ann Joo Resources Berhad's Debt?  You can click the graphic below for the historical numbers, but it shows that as of September 2022 Ann Joo Resources Berhad had RM1.32b of debt, an increase on RM995.0m, over one year.    However, because it has a cash reserve of RM140.9m, its net debt is less, at about RM1.18b.  KLSE:ANNJOO Debt to Equity History January 27th 2023 How Strong Is Ann Joo Resources Berhad's Balance Sheet?  We can see from the most recent balance sheet that Ann Joo Resources Berhad had liabilities of RM1.57b falling due within a year, and liabilities of RM58.8m due beyond that.   Offsetting this, it had RM140.9m in cash and RM644.2m in receivables that were due within 12 months.   So its liabilities total RM847.1m more than the combination of its cash and short-term receivables.   When you consider that this deficiency exceeds the company's  RM802.7m market capitalization, you might well be inclined to review the balance sheet intently.  Hypothetically, extremely heavy dilution would be required if the company were forced to pay down its liabilities by raising capital at the current share price.     When analysing debt levels, the balance sheet is the obvious place to start.  But ultimately the future profitability of the business will decide if Ann Joo Resources 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.     In the last year Ann Joo Resources Berhad wasn't profitable at an EBIT level, but managed to grow its revenue by 36%, to RM3.0b.   With any luck the company will be able to grow its way to profitability.    Caveat Emptor While we can certainly appreciate Ann Joo Resources Berhad's revenue growth, its earnings before interest and tax (EBIT) loss is not ideal.    To be specific the EBIT loss came in at RM62m.    Considering that alongside the liabilities mentioned above make us nervous about the company.  We'd want to see some strong near-term improvements before getting too interested in the stock.   Not least because it had negative free cash flow of RM251m over the last twelve months.  That means it's on the risky side of things.     There's no doubt that we learn most about debt from the balance sheet.  However, not all investment risk resides within the balance sheet - far from it.   For example, we've discovered 2 warning signs for Ann Joo Resources Berhad (1 makes us a bit uncomfortable!) that you should be aware of before investing here.     If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet. Valuation is complex, but we're helping make it simple.Find out whether Ann Joo Resources Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


Returns On Capital Signal Difficult Times Ahead For Ann Joo Resources Berhad (KLSE:ANNJOO)

If we're looking to avoid a business that is in decline, what are the trends that can warn us ahead of time?  Typically, we'll see the trend of both return on capital employed (ROCE) declining and this usually coincides with a decreasing amount of capital employed.  This reveals that the company isn't compounding shareholder wealth because returns are falling and its net asset base is shrinking.  So after glancing at the trends within Ann Joo Resources Berhad (KLSE:ANNJOO), we weren't too hopeful.   Understanding Return On Capital Employed (ROCE)  Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.  To calculate this metric for Ann Joo Resources Berhad, this is the formula:  Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.19 = RM275m ÷ (RM2.6b - RM1.2b) (Based on the trailing twelve months to March 2022). Thus, Ann Joo Resources Berhad has an ROCE of 19%.  On its own, that's a standard return, however it's much better than the 14% generated by the Metals and Mining industry.   View our latest analysis for Ann Joo Resources Berhad KLSE:ANNJOO Return on Capital Employed August 2nd 2022 Above you can see how the current ROCE for Ann Joo Resources Berhad compares to its prior returns on capital, but there's only so much you can tell from the past.  If you'd like, you can check out the forecasts from the analysts covering Ann Joo Resources Berhad here  for free.  What Can We Tell From Ann Joo Resources Berhad's ROCE Trend?  There is reason to be cautious about Ann Joo Resources Berhad, given the returns are trending downwards.  About  five years ago, returns on capital were 27%, however they're now substantially lower than that as we saw above.  On top of that, it's worth noting that the amount of capital employed within the business has remained relatively steady.  Companies that exhibit these attributes tend to not be shrinking, but they can be mature and facing pressure on their margins from competition.  So because these trends aren't typically conducive to creating a multi-bagger, we wouldn't hold our breath on Ann Joo Resources Berhad becoming one if things continue as they have.    Another thing to note, Ann Joo Resources Berhad has a high ratio of current liabilities to total assets of 46%.  This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk.  Ideally we'd like to see this reduce as that would mean fewer obligations bearing risks.    Our Take On Ann Joo Resources Berhad's ROCE  In summary, it's unfortunate that Ann Joo Resources Berhad is generating lower returns from the same amount of capital.      Long term shareholders who've owned the stock over the last  five years have experienced a 52% depreciation in their investment, so it appears the market might not like these trends either.   That being the case, unless the underlying trends revert to a more positive trajectory, we'd consider looking elsewhere.    One more thing: We've identified   4 warning signs  with Ann Joo Resources Berhad (at least 2 which are a bit concerning)  , and understanding these would certainly be useful.    While Ann Joo Resources Berhad may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. Valuation is complex, but we're helping make it simple.Find out whether Ann Joo Resources Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


Annum Berhad (KLSE:ANNUM) Could Be Riskier Than It Looks

Annum Berhad's (KLSE:ANNUM) price-to-sales (or "P/S") ratio of 0.1x might make it look like a buy right now compared to the Forestry industry in Malaysia, where around half of the companies have P/S ratios above 0.7x and even P/S above 3x are quite common.   Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/S.     View our latest analysis for Annum Berhad KLSE:ANNUM Price to Sales Ratio vs Industry July 18th 2023 How Annum Berhad Has Been Performing  The revenue growth achieved at Annum Berhad over the last year would be more than acceptable for most companies.   It might be that many expect the respectable revenue performance to degrade substantially, which has repressed the P/S.  If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.     We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on Annum Berhad's earnings, revenue and cash flow.   Do Revenue Forecasts Match The Low P/S Ratio?   There's an inherent assumption that a company should underperform the industry for P/S ratios like Annum Berhad's to be considered reasonable.   Taking a look back first, we see that the company grew revenue by an impressive 23% last year.    Spectacularly, three year revenue growth has ballooned by several orders of magnitude, thanks in part to the last 12 months of revenue growth.  So we can start by confirming that the company has done a tremendous job of growing revenue over that time.     Comparing that recent medium-term revenue trajectory with the industry's one-year growth forecast of 7.3% shows it's noticeably more attractive.  With this information, we find it odd that Annum Berhad is trading at a P/S lower than the industry.  It looks like most investors are not convinced the company can maintain its recent growth rates.    The Key Takeaway  We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.  We're very surprised to see Annum Berhad currently trading on a much lower than expected P/S since its recent three-year growth is higher than the wider industry forecast.  When we see robust revenue growth that outpaces the industry, we presume that there are notable underlying risks to the company's future performance, which is exerting downward pressure on the P/S ratio.  At least price risks look to be very low if recent medium-term revenue trends continue, but investors seem to think future revenue could see a lot of volatility.      Before you take the next step, you should know about the 4 warning signs for Annum Berhad (2 are a bit concerning!) that we have uncovered.   If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios. Valuation is complex, but we're helping make it simple.Find out whether Annum 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.


Annum Berhad Third Quarter 2022 Earnings: EPS: RM0.044 (vs RM0.37 in 3Q 2021)

Annum Berhad (KLSE:ANNUM) Third Quarter 2022 ResultsKey Financial Results Revenue: RM83.2m (up 3.2% from 3Q 2021). Net income: RM4.26m (down 85% from 3Q 2021). Profit margin: 5.1% (down from 35% in 3Q 2021). EPS: RM0.044 (down from RM0.37 in 3Q 2021).  KLSE:ANNUM Earnings and Revenue History November 27th 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Annum Berhad shares are up 1.6% from a week ago.   Risk Analysis We don't want to rain on the parade too much, but we did also find 4 warning signs for Annum Berhad (2 don't sit too well with us!) that you need to be mindful of. Valuation is complex, but we're helping make it simple.Find out whether Annum 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.


A-Rank Berhad First Quarter 2023 Earnings: EPS: RM0.02 (vs RM0.021 in 1Q 2022)

A-Rank Berhad (KLSE:ARANK) First Quarter 2023 ResultsKey Financial Results Revenue: RM158.2m (down 12% from 1Q 2022). Net income: RM3.53m (down 5.6% from 1Q 2022). Profit margin: 2.2% (in line with 1Q 2022). EPS: RM0.02 (down from RM0.021 in 1Q 2022).  KLSE:ARANK Earnings and Revenue History December 8th 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period A-Rank Berhad shares are down 7.9% from a week ago.   Risk Analysis What about risks? Every company has them, and we've spotted   3 warning signs for A-Rank Berhad   you should know about.  Valuation is complex, but we're helping make it simple.Find out whether A-Rank 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.


A-Rank Berhad (KLSE:ARANK) Will Pay A Larger Dividend Than Last Year At MYR0.0275

A-Rank Berhad's (KLSE:ARANK) dividend will be increasing from last year's payment of the same period to MYR0.0275 on 21st of December.       This will take the annual payment to 5.2% of the stock price, which is above what most companies in the industry pay.    Check out the opportunities and risks within the MY Metals and Mining industry. A-Rank Berhad's Payment Has Solid Earnings Coverage  While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable.     Before making this announcement, A-Rank Berhad was easily earning enough to cover the dividend.  This means that most of what the business earns is being used to help it grow.    Over the next year, EPS could expand by 0.9% if recent trends continue.   If the dividend continues along recent trends, we estimate the payout ratio will be 27%, which is in the range that makes us comfortable with the sustainability of the dividend.     KLSE:ARANK Historic Dividend November 6th 2022 Dividend Volatility  Although the company has a long dividend history, it has been cut at least once in the last 10 years.      The dividend has gone from an annual total of MYR0.0143 in 2012 to the most recent total annual payment of MYR0.0275.      This implies that the company grew its distributions at a yearly rate of about 6.8% over that duration.     We have seen cuts in the past, so while the growth looks promising we would be a little bit cautious about its track record.     Dividend Growth May Be Hard To Achieve  Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend.      A-Rank Berhad hasn't seen much change in its earnings per share over the last five years.      While EPS growth is quite low, A-Rank Berhad has the option to increase the payout ratio to return more cash to shareholders.    In Summary  In summary, it's great to see that the company can raise the dividend and keep it in a sustainable range.      While the payout ratios are a good sign, we are less enthusiastic about the company's dividend record.     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.  Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company.   Just as an example, we've come across 4 warning signs for A-Rank Berhad you should be aware of, and 1 of them is a bit unpleasant.    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 A-Rank 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.


Estimating The Fair Value Of A-Rank Berhad (KLSE:ARANK)

Today we will run through one way of estimating the intrinsic value of A-Rank Berhad (KLSE:ARANK) by taking the forecast future cash flows of the company and discounting them back to today's value.  We will take advantage of the Discounted Cash Flow (DCF) model for this purpose.  It may sound complicated, but actually it is quite simple!  We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios.  For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you.  Check out our latest analysis for A-Rank Berhad  The Model   We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase.  In the first stage we need to estimate the cash flows to the business over the next ten years.   Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.   Generally we assume that a dollar today is more valuable than a dollar in the future,  and so the sum of these future cash flows is then discounted to today's value:  10-year free cash flow (FCF) forecast  2023 2024 2025 2026 2027 2028 2029 2030 2031 2032  Levered FCF (MYR, Millions)  RM16.5m RM15.0m RM14.1m RM13.8m RM13.7m RM13.7m RM13.9m RM14.2m RM14.5m RM15.0m Growth Rate Estimate Source Est @ -14.68% Est @ -9.21% Est @ -5.38% Est @ -2.70% Est @ -0.83% Est @ 0.49% Est @ 1.41% Est @ 2.05% Est @ 2.50% Est @ 2.81%  Present Value (MYR, Millions) Discounted @ 16%  RM14.2 RM11.1 RM9.1 RM7.6 RM6.5 RM5.6 RM4.9 RM4.3 RM3.8 RM3.4 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM71m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period.  The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 3.6%. We discount the terminal cash flows to today's value at a cost of equity of 16%. Terminal Value (TV)= FCF2032 × (1 + g) ÷ (r – g) = RM15m× (1 + 3.6%) ÷ (16%– 3.6%) = RM124mPresent Value of Terminal Value (PVTV)= TV / (1 + r)10= RM124m÷ ( 1 + 16%)10= RM28m The total value, or equity value, is then the sum of the present value of the future cash flows,  which in this case is RM99m.  In the final step we divide the equity value by the number of shares outstanding.  Compared to the current share price of RM0.6, the company appears   around fair value    at the time of writing.   The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. KLSE:ARANK Discounted Cash Flow January 31st 2023  Important Assumptions  The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows.  Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions.  The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance.  Given that we are looking at A-Rank Berhad as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt.  In this calculation we've used 16%, which is based on a levered beta of 1.621. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.   Next Steps:  Whilst important, the DCF calculation  is only one of many factors that you need to assess for a company.  It's not possible to obtain a foolproof valuation with a DCF model.  Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?"  For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation.  For A-Rank Berhad, there are three  relevant  elements  you should look at:   Risks: To that end, you should be aware of the   3 warning signs  we've spotted with A-Rank Berhad .   Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered!  Other Top Analyst Picks: Interested to see what the analysts are thinking? Take a look at our interactive list of analysts' top stock picks to find out what they feel might have an attractive future outlook!   PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the KLSE every day. If you want to find the calculation for other stocks just search here.Valuation is complex, but we're helping make it simple.Find out whether A-Rank 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 Smart To Buy A-Rank Berhad (KLSE:ARANK) Before It Goes Ex-Dividend?

It looks like A-Rank Berhad (KLSE:ARANK) is about to go ex-dividend in the next three days.  The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment.  The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date.   Therefore, if you purchase A-Rank Berhad's shares on or after the 8th of December, you won't be eligible to receive the dividend, when it is paid on the 21st of December.   The company's next dividend payment will be RM0.028 per share. Last year, in total, the company distributed RM0.028 to shareholders.  Calculating the last year's worth of payments shows that A-Rank Berhad has a trailing yield of 4.8% on the current share price of MYR0.575.    Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends.  We need to see whether the dividend is covered by earnings and if it's growing.  Check out the opportunities and risks within the MY Metals and Mining 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.   That's why it's good to see A-Rank Berhad paying out a modest 26% of its earnings.     Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution.     Thankfully its dividend payments took up just 33% of the free cash flow it generated, which is a comfortable payout ratio.      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 how much of its profit A-Rank Berhad paid out over the last 12 months. KLSE:ARANK Historic Dividend December 4th 2022 Have Earnings And Dividends Been Growing? Companies that aren't growing their earnings can still be valuable, but it is even more important to assess the sustainability of the dividend if it looks like the company will struggle to grow.   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 explains why we're not overly excited about A-Rank Berhad's flat earnings over the past five years.  It's better than seeing them drop, certainly, but over the long term, all of the best dividend stocks are able to meaningfully grow their earnings per share.        Recent earnings growth has been limited.  Yet there are several ways to grow the dividend, and one of them is simply that the company may choose to pay out more of its earnings as dividends.     The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth.     A-Rank Berhad has delivered an average of 6.8% per year annual increase in its dividend, based on the past 10 years of dividend payments.      To Sum It Up  Is A-Rank Berhad an attractive dividend stock, or better left on the shelf?      The company has barely grown earnings per share over this time, but at least it's paying out a decently low percentage of its earnings and cashflow as dividends. This could suggest management is reinvesting in future growth opportunities.  Generally we like to see both low payout ratios and strong earnings per share growth, but A-Rank Berhad is halfway there.         A-Rank Berhad looks solid on this analysis overall, and we'd definitely consider investigating it more closely.    On that note, you'll want to research what risks A-Rank Berhad is facing.     To help with this, we've discovered 4 warning signs for A-Rank Berhad (1 can't be ignored!) that you ought to be aware of before buying the shares.   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 A-Rank 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.


Are Financials Responsible For Artroniq Berhad Stock's Increase?

Artroniq Berhad's (KLSE:ARTRONIQ) stock is up by a considerable 40% over the past three months.   We wonder if and what role the company's financials play in that price change as a company's long-term fundamentals usually dictate market outcomes.      In this article, we decided to focus on Artroniq Berhad's  ROE.    ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders.  Simply put, it is used to assess the profitability of a company in relation to its equity capital.  Check out our latest analysis for Artroniq Berhad  How Is ROE Calculated?  The formula for return on equity is:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Artroniq Berhad is:1.6% = RM762k ÷ RM47m (Based on the trailing twelve months to September 2022). The 'return' is the amount earned after tax over the last twelve months.  So, this means that for every MYR1 of its shareholder's investments, the company generates a profit of MYR0.02.   What Is The Relationship Between ROE And Earnings Growth?  We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings.  Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential.  Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.  Artroniq Berhad's Earnings Growth And 1.6% ROE   It is quite clear that Artroniq Berhad's ROE is rather low.   Not just that, even compared to the industry average of 8.6%, the company's ROE is entirely unremarkable.   However, we we're pleasantly surprised to see that Artroniq Berhad grew its net income at a significant rate of 23% in the last five years.  We reckon that there could be other factors at play here.  Such as - high earnings retention or an efficient management in place.     As a next step, we compared Artroniq Berhad's net income growth with the industry and found that the company has a similar growth figure when compared with the industry average growth rate of 23% in the same period.   KLSE:ARTRONIQ Past Earnings Growth December 29th 2022 The basis for attaching value to a company is, to a great extent, tied to its earnings growth.  The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in.   This then helps them determine if the stock is placed for a bright or bleak future.    If you're wondering about Artroniq Berhad's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.    Is Artroniq Berhad Using Its Retained Earnings Effectively?    Given that Artroniq Berhad doesn't pay any dividend to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business.     Summary    On the whole, we do feel that Artroniq Berhad has some positive attributes.      Despite its low rate of return, the fact that the company reinvests a very high portion of its profits into its business, no doubt contributed to its high earnings growth.       While we won't completely dismiss the company, what we would do, is try to ascertain how risky the business is to make a more informed decision around the company.   You can see the 3 risks we have identified for Artroniq Berhad by visiting our risks dashboard for free  on our platform here. Valuation is complex, but we're helping make it simple.Find out whether Artroniq 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.


Artroniq Berhad's (KLSE:ARTRONIQ) Shares Not Telling The Full Story

With a median price-to-sales (or "P/S") ratio of close to 1.5x in the Chemicals industry in Malaysia, you could be forgiven for feeling indifferent about Artroniq Berhad's  (KLSE:ARTRONIQ) P/S ratio of 2x.  Although, it's not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.      View our latest analysis for Artroniq Berhad KLSE:ARTRONIQ Price to Sales Ratio vs Industry July 6th 2023 What Does Artroniq Berhad's P/S Mean For Shareholders?  For example, consider that Artroniq Berhad's financial performance has been poor lately as its revenue has been in decline.   Perhaps investors believe the recent revenue performance is enough to keep in line with the industry, which is keeping the P/S from dropping off.  If you like the company, you'd at least be hoping this is the case so that you could potentially pick up some stock while it's not quite in favour.     Although there are no analyst estimates available for Artroniq Berhad, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.   What Are Revenue Growth Metrics Telling Us About The P/S?   There's an inherent assumption that a company should be matching the industry for P/S ratios like Artroniq Berhad's to be considered reasonable.   In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 46%.   However, a few very strong years before that means that it was still able to grow revenue by an impressive 47% in total over the last three years.  So we can start by confirming that the company has generally done a very good job of growing revenue over that time, even though it had some hiccups along the way.     This is in contrast to the rest of the industry, which is expected to grow by 0.3% over the next year, materially lower than the company's recent medium-term annualised growth rates.  In light of this, it's curious that Artroniq Berhad's P/S sits in line with the majority of other companies.  It may be that most investors are not convinced the company can maintain its recent growth rates.    The Bottom Line On Artroniq Berhad's P/S  While the price-to-sales ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of revenue expectations.  To our surprise, Artroniq Berhad revealed its three-year revenue trends aren't contributing to its P/S as much as we would have predicted, given they look better than current industry expectations.  When we see strong revenue with faster-than-industry growth, we can only assume potential risks are what might be placing pressure on the P/S ratio.  It appears some are indeed anticipating revenue instability, because the persistence of these recent medium-term conditions would normally provide a boost to the share price.      Don't forget that there may be other risks. For instance, we've identified 3 warning signs for Artroniq Berhad  (1 is a bit concerning) you should be aware of.   If strong companies turning a profit tickle your fancy, then you'll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings). Valuation is complex, but we're helping make it simple.Find out whether Artroniq Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


Returns At Artroniq Berhad (KLSE:ARTRONIQ) Are On The Way Up

If you're looking for a multi-bagger, there's a few things to keep an eye out for.  In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing.  If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities.    So on that note, Artroniq Berhad (KLSE:ARTRONIQ) looks quite promising in regards to its trends of return on capital.     Understanding Return On Capital Employed (ROCE)  Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.  Analysts use this formula to calculate it for Artroniq Berhad:  Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.036 = RM1.8m ÷ (RM61m - RM12m) (Based on the trailing twelve months to June 2022). Therefore, Artroniq Berhad has an ROCE of 3.6%. In absolute terms, that's a low return and it also under-performs the Chemicals industry average of 8.3%.   Check out the opportunities and risks within the MY Chemicals industry. KLSE:ARTRONIQ Return on Capital Employed November 12th 2022 Historical performance is a great place to start when researching a stock so above you can see the gauge for Artroniq Berhad's ROCE against it's prior returns.  If you're interested in investigating Artroniq Berhad's past further, check out this free graph of past earnings, revenue and cash flow.  What Does the ROCE Trend For Artroniq Berhad Tell Us?  The fact that Artroniq Berhad is now generating some pre-tax profits from its prior investments is very encouraging.  About  five years ago the company was generating losses but things have turned around because it's now earning 3.6% on its capital.  In addition to that, Artroniq Berhad is employing 46% more capital than previously which is expected of a company that's trying to break into profitability.  We like this trend, because it tells us the company has profitable reinvestment opportunities available to it, and if it continues going forward that can lead to a multi-bagger performance.    Our Take On Artroniq Berhad's ROCE  To the delight of most shareholders, Artroniq Berhad has now broken into profitability.       Since the stock has returned a staggering 131% to shareholders over the last  five years, it looks like investors are recognizing these changes.   Therefore, we think it would be worth your time to check if these trends are going to continue.    Artroniq Berhad does have some risks though, and we've spotted   3 warning signs for Artroniq Berhad  that you might be interested in.     While Artroniq Berhad isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Valuation is complex, but we're helping make it simple.Find out whether Artroniq 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.


Asia Poly Holdings Berhad (KLSE:ASIAPLY) Is Making Moderate Use Of Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.'  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 Asia Poly Holdings Berhad (KLSE:ASIAPLY) does have debt on its balance sheet.  But should shareholders be worried about its use of debt?  When Is Debt Dangerous?  Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow.  In the worst case scenario, a company can go bankrupt if it cannot pay its creditors.  While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price.  Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return.  When we think about a company's use of debt, we first look at cash and debt together.   See our latest analysis for Asia Poly Holdings Berhad  How Much Debt Does Asia Poly Holdings Berhad Carry?  You can click the graphic below for the historical numbers, but it shows that as of March 2023 Asia Poly Holdings Berhad had RM61.9m of debt, an increase on RM37.4m, over one year.    However, it does have RM25.8m in cash offsetting this, leading to net debt of about RM36.1m.  KLSE:ASIAPLY Debt to Equity History July 20th 2023 How Healthy Is Asia Poly Holdings Berhad's Balance Sheet?  According to the last reported balance sheet, Asia Poly Holdings Berhad had liabilities of RM52.1m due within 12 months, and liabilities of RM36.0m due beyond 12 months.   On the other hand, it had cash of RM25.8m and RM23.9m worth of receivables due within a year.   So its liabilities outweigh the sum of its cash and (near-term) receivables by RM38.3m.    Asia Poly Holdings Berhad has a market capitalization of RM95.9m, so it could very likely raise cash to ameliorate its balance sheet, if the need arose.  But it's clear that we should definitely closely examine whether it can manage its debt without dilution.     The balance sheet is clearly the area to focus on when you are analysing debt.  But you can't view debt in total isolation; since Asia Poly Holdings Berhad will need earnings to service that debt.  So if you're keen to discover more about its earnings, it might be worth checking out this graph of its long term earnings trend.   In the last year Asia Poly Holdings Berhad wasn't profitable at an EBIT level, but managed to grow its revenue by 16%, to RM98m.   That rate of growth is a bit slow for our taste, but it takes all types to make a world.    Caveat Emptor Over the last twelve months Asia Poly Holdings Berhad produced an earnings before interest and tax (EBIT) loss.    Indeed, it lost RM7.0m at the EBIT level.    Considering that alongside the liabilities mentioned above does not give us much confidence that company should be using so much debt.  So we think its balance sheet is a little strained, though not beyond repair.   However, it doesn't help that it burned through RM22m of cash over the last year.   So in short it's a really risky stock.      The balance sheet is clearly the area to focus on when you are analysing debt.  But ultimately, every company can contain risks that exist outside of the balance sheet.   For example Asia Poly Holdings Berhad has   4 warning signs  (and 2 which can't be ignored)  we think 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 Asia Poly 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.


Asia Poly Holdings Berhad Third Quarter 2022 Earnings: RM0.003 loss per share (vs RM0.002 loss in 3Q 2021)

Asia Poly Holdings Berhad (KLSE:ASIAPLY) Third Quarter 2022 ResultsKey Financial Results Revenue: RM25.0m (up 38% from 3Q 2021). Net loss: RM2.80m (loss widened by 50% from 3Q 2021). RM0.003 loss per share (further deteriorated from RM0.002 loss in 3Q 2021).  KLSE:ASIAPLY Earnings and Revenue History November 27th 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Asia Poly Holdings Berhad shares are down 7.4% from a week ago.   Risk Analysis It's necessary to consider the ever-present spectre of investment risk.   We've identified 4 warning signs  with Asia Poly Holdings Berhad (at least 1 which is a bit unpleasant), and understanding them should be part of your investment process. Valuation is complex, but we're helping make it simple.Find out whether Asia Poly 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.


Atta Global Group Berhad Full Year 2022 Earnings: EPS: RM3.40 (vs RM0.62 loss in FY 2021)

Atta Global Group Berhad (KLSE:ATTA) Full Year 2022 ResultsKey Financial Results Revenue: RM119.8b (up 54% from FY 2021). Net income: RM750.1m (up from RM132.6m loss in FY 2021). Profit margin: 0.6% (up from net loss in FY 2021). EPS: RM3.40 (up from RM0.62 loss in FY 2021).  KLSE:ATTA Earnings and Revenue History October 31st 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Atta Global Group Berhad's share price is broadly unchanged from a week ago.   Risk Analysis What about risks? Every company has them, and we've spotted   4 warning signs for Atta Global Group Berhad   you should know about.Valuation is complex, but we're helping make it simple.Find out whether Mayu Global Group Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


Are B.I.G. Industries Berhad's Strong Financials Guiding Its Uptrend?

B.I.G. Industries Berhad's (KLSE:BIG) stock is up by a considerable 29% over the past three months.   Since the market usually pay for a company’s long-term fundamentals, we decided to study the company’s key performance indicators to see if they could be influencing the market.      Specifically, we decided to study B.I.G. Industries Berhad's  ROE in this article.    Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested.  Put another way, it reveals the company's success at turning shareholder investments into profits.  See our latest analysis for B.I.G. Industries Berhad  How To Calculate Return On Equity?  Return on equity can be calculated by using the formula:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for B.I.G. Industries Berhad is:9.5% = RM3.7m ÷ RM39m (Based on the trailing twelve months to September 2022). The 'return' is the yearly profit.  That means that for every MYR1 worth of shareholders' equity, the company generated MYR0.09 in profit.   Why Is ROE Important For Earnings Growth?  So far, we've learned that ROE is a measure of a company's profitability.  We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company.  Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.  B.I.G. Industries Berhad's Earnings Growth And 9.5% ROE  At first glance, B.I.G. Industries Berhad's ROE doesn't look very promising.   However, the fact that the its ROE is quite higher to the industry average of 1.9% doesn't go unnoticed by us.   Even more so after seeing B.I.G. Industries Berhad's exceptional 62% net income growth over the past five years.  That being said, the company does have a slightly low ROE to begin with, just that it is higher than the industry average.  Hence, there might be some other aspects that are causing earnings to grow.  Such as- high earnings retention or the company belonging to a high growth industry.     We then compared B.I.G. Industries Berhad's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 17% in the same period.   KLSE:BIG Past Earnings Growth January 11th 2023 Earnings growth is a huge factor in stock valuation.  What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price.  Doing so will help them establish if the stock's future looks promising or ominous.    Is B.I.G. Industries Berhad fairly valued compared to other companies? These 3 valuation measures might help you decide.    Is B.I.G. Industries Berhad Making Efficient Use Of Its Profits?    Given that B.I.G. Industries Berhad doesn't pay any dividend to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business.     Summary    Overall, we are quite pleased with B.I.G. Industries Berhad's performance.      Specifically, we like that it has been reinvesting a high portion of its profits at a moderate rate of return, resulting in earnings expansion.        If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices.  Not to forget, share price outcomes are also dependent on the potential risks a company may face. So it is important for investors to be aware of the risks involved in the business.    To know the 2 risks we have identified for B.I.G. Industries Berhad visit our risks dashboard for free. Valuation is complex, but we're helping make it simple.Find out whether B.I.G. Industries Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


B.I.G. Industries Berhad Full Year 2022 Earnings: EPS: RM0.064 (vs RM0.004 loss in FY 2021)

B.I.G. Industries Berhad (KLSE:BIG) Full Year 2022 ResultsKey Financial Results Revenue: RM39.8m (up 25% from FY 2021). Net income: RM3.70m (up from RM196.8k loss in FY 2021). Profit margin: 9.3% (up from net loss in FY 2021). EPS: RM0.064 (up from RM0.004 loss in FY 2021).  KLSE:BIG Earnings and Revenue History October 29th 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period B.I.G. Industries Berhad shares are up 4.7% from a week ago.   Risk Analysis You should always think about risks. Case in point, we've spotted   3 warning signs for B.I.G. Industries Berhad  you should be aware of, and 1 of them shouldn't be ignored.Valuation is complex, but we're helping make it simple.Find out whether B.I.G. Industries Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


Unpleasant Surprises Could Be In Store For B.I.G. Industries Berhad's (KLSE:BIG) Shares

With a price-to-earnings (or "P/E") ratio of 27.1x B.I.G. Industries Berhad (KLSE:BIG) may be sending very bearish signals at the moment, given that almost half of all companies in Malaysia have P/E ratios under 13x and even P/E's lower than 8x are not unusual.  Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.     As an illustration, earnings have deteriorated at B.I.G. Industries Berhad over the last year, which is not ideal at all.   It might be that many expect the company to still outplay most other companies over the coming period, which has kept the P/E from collapsing.  If not, then existing shareholders may be quite nervous about the viability of the share price.     See our latest analysis for B.I.G. Industries Berhad KLSE:BIG Price to Earnings Ratio vs Industry June 14th 2023 Although there are no analyst estimates available for B.I.G. Industries Berhad, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.   How Is B.I.G. Industries Berhad's Growth Trending?   B.I.G. Industries Berhad's P/E ratio would be typical for a company that's expected to deliver very strong growth, and importantly, perform much better than the market.   Taking a look back first, the company's earnings per share growth last year wasn't something to get excited about as it posted a disappointing decline of 34%.   Unfortunately, that's brought it right back to where it started three years ago with EPS growth being virtually non-existent overall during that time.  Accordingly, shareholders probably wouldn't have been overly satisfied with the unstable medium-term growth rates.     This is in contrast to the rest of the market, which is expected to grow by 11% over the next year, materially higher than the company's recent medium-term annualised growth rates.  With this information, we find it concerning that B.I.G. Industries Berhad is trading at a P/E higher than the market.  Apparently many investors in the company are way more bullish than recent times would indicate and aren't willing to let go of their stock at any price.  There's a good chance existing shareholders are setting themselves up for future disappointment if the P/E falls to levels more in line with recent growth rates.    What We Can Learn From B.I.G. Industries Berhad's P/E?  We'd say the price-to-earnings ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.  We've established that B.I.G. Industries Berhad currently trades on a much higher than expected P/E since its recent three-year growth is lower than the wider market forecast.  When we see weak earnings with slower than market growth, we suspect the share price is at risk of declining, sending the high P/E lower.  If recent medium-term earnings trends continue, it will place shareholders' investments at significant risk and potential investors in danger of paying an excessive premium.      There are also other vital risk factors to consider and we've discovered 2 warning signs for B.I.G. Industries Berhad (1 is potentially serious!) that you should be aware of before investing here.   If P/E ratios interest you, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios. Valuation is complex, but we're helping make it simple.Find out whether B.I.G. Industries Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


A Look At The Intrinsic Value Of Batu Kawan Berhad (KLSE:BKAWAN)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Batu Kawan Berhad (KLSE:BKAWAN) as an investment opportunity  by projecting its future cash flows and then discounting them to today's value.  Our analysis will employ the Discounted Cash Flow (DCF) model.  It may sound complicated, but actually it is quite simple!  Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation.  Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.  See our latest analysis for Batu Kawan Berhad  Is Batu Kawan Berhad Fairly Valued?   We have to calculate the value of Batu Kawan Berhad slightly differently to other stocks because it is a chemicals company.  Instead of using free cash flows, which are hard to estimate and often not reported by analysts in this industry, dividends per share (DPS) payments are used.  Unless a company pays out the majority of its FCF as a dividend, this method will typically underestimate the value of the stock.  We use the Gordon Growth Model, which assumes dividend will grow into perpetuity at a rate that can be sustained.  The dividend is expected to grow at an annual growth rate equal to the 5-year average of the 10-year government bond yield of 3.6%. We then discount this figure to today's value at a cost of equity of 9.3%.  Compared to the current share price of RM22.5, the company appears   around fair value    at the time of writing.   Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. Value Per Share = Expected Dividend Per Share / (Discount Rate - Perpetual Growth Rate)= RM1.1 / (9.3% – 3.6%)= RM19.0KLSE:BKAWAN Discounted Cash Flow September 12th 2022  The Assumptions  We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.  Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions.  The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance.  Given that we are looking at Batu Kawan Berhad as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt.  In this calculation we've used 9.3%, which is based on a levered beta of 1.067. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.   Moving On:  Whilst important, the DCF calculation  is only one of many factors that you need to assess for a company.  The DCF model is not a perfect stock valuation tool.  Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?"  For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result.  For Batu Kawan Berhad, there are three  essential  aspects  you should further research:   Risks: For instance, we've identified   2 warning signs for Batu Kawan Berhad (1 is significant)  you should be aware of.   Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!  Other Environmentally-Friendly Companies: Concerned about the environment and think consumers will buy eco-friendly products more and more? Browse through our interactive list of companies that are thinking about a greener future to discover some stocks you may not have thought of!   PS. Simply Wall St updates its DCF calculation for every Malaysian stock every day, so if you want to find the intrinsic value of any other stock just search here.Valuation is complex, but we're helping make it simple.Find out whether Batu Kawan 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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ViTrox Corporation Berhad (KLSE:VITROX) stock performs better than its underlying earnings growth over last five years

When you buy a stock there is always a possibility that it could drop 100%.  But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%.  One great example is ViTrox Corporation Berhad (KLSE:VITROX) which saw its share price drive 188% higher over five years.   In the last week the share price is up 3.3%.      After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.   View our latest analysis for ViTrox Corporation Berhad  SWOT Analysis for ViTrox Corporation BerhadStrength Debt is not viewed as a risk. Balance sheet summary for VITROX. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Semiconductor market. Expensive based on P/E ratio and estimated fair value. Opportunity Annual earnings are forecast to grow faster than the Malaysian market. Threat Revenue is forecast to grow slower than 20% per year.  What else are analysts forecasting for VITROX?   To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine.  One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).   During five years of share price growth, ViTrox Corporation Berhad achieved compound earnings per share (EPS) growth of 17% per year.   This EPS growth is lower than the 24% average annual increase in the share price.  So it's fair to assume the market has a higher opinion of the business than it did five years ago.  That's not necessarily surprising considering the five-year track record of earnings growth.   You can see how EPS has changed over time in the image below (click on the chart to see the exact values). KLSE:VITROX Earnings Per Share Growth June 19th 2023 It's probably worth noting that the CEO is paid less than the median at similar sized companies.  It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years.  This free interactive report on ViTrox Corporation Berhad's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.   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.  So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return.  In the case of ViTrox Corporation Berhad, it has a TSR of 197% 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 ViTrox Corporation Berhad shareholders have received a total shareholder return of 16% over one year.   And that does include the dividend.    However, that falls short of the 24% TSR per annum it has made for shareholders, each year, over five years.   Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders.        Before forming an opinion on ViTrox Corporation Berhad you might want to consider these 3 valuation metrics.  We will like ViTrox Corporation 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 Malaysian exchanges.Valuation is complex, but we're helping make it simple.Find out whether ViTrox 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.


ViTrox Corporation Berhad Third Quarter 2022 Earnings: Revenues Beat Expectations, EPS Lags

ViTrox Corporation Berhad (KLSE:VITROX) Third Quarter 2022 ResultsKey Financial Results Revenue: RM188.8m (up 12% from 3Q 2021). Net income: RM50.8m (up 20% from 3Q 2021). Profit margin: 27% (up from 25% in 3Q 2021).The increase in margin was driven by higher revenue. EPS: RM0.054 (up from RM0.045 in 3Q 2021).  KLSE:VITROX Earnings and Revenue Growth October 29th 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period ViTrox Corporation Berhad Revenues Beat Expectations, EPS Falls Short  Revenue exceeded analyst estimates by 5.5%.  Earnings per share (EPS) missed analyst estimates by 10%.      Looking ahead, revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Semiconductor industry in Malaysia.    Performance of the Malaysian Semiconductor industry.  The company's share price is broadly unchanged from a week ago.   Balance Sheet Analysis Just as investors must consider earnings, it is also important to take into account the strength of a company's balance sheet.  We've done some analysis and you can see our take on ViTrox Corporation Berhad's balance sheet.Valuation is complex, but we're helping make it simple.Find out whether ViTrox 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.