ViTrox Corporation Berhad's (KLSE:VITROX) CEO Jenn Chu is the most upbeat insider, and their holdings increased by 5.1% last week

Every investor in ViTrox Corporation Berhad (KLSE:VITROX) should be aware of the most powerful shareholder groups.  We can see that individual insiders own the lion's share in the company with 68% ownership.   That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).  Clearly, insiders benefitted the most after the company's market cap rose by RM369m last week.     Let's take a closer look to see what the different types of shareholders can tell us about ViTrox Corporation Berhad.  Check out our latest analysis for ViTrox Corporation Berhad KLSE:VITROX Ownership Breakdown January 14th 2023 What Does The Institutional Ownership Tell Us About ViTrox Corporation Berhad? Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.   ViTrox Corporation Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company.  This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes.  If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at ViTrox Corporation Berhad's earnings history below. Of course, the future is what really matters. KLSE:VITROX Earnings and Revenue Growth January 14th 2023  Hedge funds don't have many shares in ViTrox Corporation Berhad.      Looking at our data, we can see that the largest shareholder is the CEO Jenn Chu with 27% of shares outstanding.       Kok Siaw is the second largest shareholder owning 19% of common stock, and Shih Yeoh holds about 10% of the company stock.      Interestingly, the second and third-largest shareholders also happen to be the Senior Key Executive and Member of the Board of Directors, respectively. This once again signifies considerable insider ownership amongst the company's top shareholders.         After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.    While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance.   Quite a few analysts cover the stock, so you could look into forecast growth quite easily.  Insider Ownership Of ViTrox Corporation Berhad While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.  Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.  Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.   Our most recent data indicates that insiders own the majority of ViTrox Corporation Berhad. This means they can collectively make decisions for the company.   Given it has a market cap of RM7.5b, that means insiders have a whopping RM5.1b worth of shares in their own names.  Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.   General Public Ownership The general public, who are usually individual investors, hold a 20% stake in ViTrox Corporation Berhad.   While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.  Next Steps: I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.   I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.   If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.  NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.Valuation is complex, but we're helping make it simple.Find out whether 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.


A Closer Look At Agmo Holdings Berhad's (KLSE:AGMO) Impressive ROE

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important.  We'll use ROE to examine Agmo Holdings Berhad (KLSE:AGMO), by way of a worked example.   Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital.  Put another way, it reveals the company's success at turning shareholder investments into profits.   See our latest analysis for Agmo Holdings Berhad   How Do You Calculate Return On Equity?  The formula for return on equity is:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Agmo Holdings Berhad is:61% = RM6.7m ÷ RM11m (Based on the trailing twelve months to March 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 MYR0.61 in profit.   Does Agmo Holdings Berhad Have A Good ROE?  One simple way to determine if a company has a good return on equity is to compare it to the average for its industry.  The limitation of this approach is that some companies are quite different from others, even within the same industry classification.   As you can see in the graphic below, Agmo Holdings Berhad has a higher ROE than the average (10%) in the Software industry. KLSE:AGMO Return on Equity December 2nd 2022 That's clearly a positive.     With that said, a high ROE doesn't always indicate high profitability.  Especially when a firm uses high levels of debt to finance its debt which may boost its ROE but the high leverage puts the company at risk.   To know the 3 risks we have identified for Agmo Holdings Berhad visit our risks dashboard for free.  The Importance Of Debt To Return On Equity  Companies usually need to invest money to grow their profits.  That cash can come from issuing shares, retained earnings, or debt.  In the first and second cases, the ROE will reflect this use of cash for investment in the business.  In the latter case, the debt used for growth will improve returns, but won't affect the total equity.  That will make the ROE look better than if no debt was used.  Agmo Holdings Berhad's Debt And Its 61% ROE  Shareholders will be pleased to learn that Agmo Holdings Berhad has not one iota of net debt!   Its high ROE indicates the business is high quality, but the fact that this was achieved without leverage is veritably impressive.   After all, when a company has a strong balance sheet, it can often find ways to invest in growth, even if it takes some time.     Conclusion    Return on equity is one way we can compare its business quality of different companies.  Companies that can achieve high returns on equity without too much debt are generally of good quality.  If two companies have the same ROE, then I would generally prefer the one with less debt.  But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings.  The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too.   So you might want to check this FREE visualization of analyst forecasts for the company.  Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this  free list of interesting companies. Valuation is complex, but we're helping make it simple.Find out whether Agmo 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.


A Look At The Fair Value Of Agmo Holdings Berhad (KLSE:AGMO)

Key Insights Agmo Holdings Berhad's estimated fair value is RM0.55 based on 2 Stage Free Cash Flow to Equity   With RM0.63 share price, Agmo Holdings Berhad appears to be trading close to its estimated fair value   When compared to theindustry average discount of -634%, Agmo Holdings Berhad's competitors seem to be trading at a greater premium to fair value   How far off is Agmo Holdings Berhad (KLSE:AGMO) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced  by projecting its future cash flows and then discounting them to today's value.  This will be done using the Discounted Cash Flow (DCF) model.  It may sound complicated, but actually it is quite simple!  We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws.  For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you.  See our latest analysis for Agmo Holdings Berhad  Crunching The Numbers   We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate.  To begin with, we have to get estimates of the next ten years of cash flows.   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.   A DCF is all about the idea that a dollar in the future is less valuable than a dollar today,  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)  RM7.69m RM9.89m RM12.0m RM13.9m RM15.6m RM17.1m RM18.4m RM19.6m RM20.7m RM21.8m Growth Rate Estimate Source Est @ 39.45% Est @ 28.69% Est @ 21.15% Est @ 15.88% Est @ 12.19% Est @ 9.60% Est @ 7.79% Est @ 6.53% Est @ 5.64% Est @ 5.02%  Present Value (MYR, Millions) Discounted @ 11%  RM6.9 RM8.0 RM8.6 RM9.0 RM9.0 RM8.9 RM8.6 RM8.2 RM7.8 RM7.3 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM82m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage.  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 11%. Terminal Value (TV)= FCF2032 × (1 + g) ÷ (r – g) = RM22m× (1 + 3.6%) ÷ (11%– 3.6%) = RM284mPresent Value of Terminal Value (PVTV)= TV / (1 + r)10= RM284m÷ ( 1 + 11%)10= RM96m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value,  which in this case is RM178m.  To get the intrinsic value per share, we divide this by the total 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:AGMO Discounted Cash Flow March 18th 2023  The Assumptions  Now 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 Agmo Holdings 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 11%, which is based on a levered beta of 0.990. 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.   Looking Ahead:  Whilst important, the DCF calculation  shouldn't be the only metric you look at when researching a company.  It's not possible to obtain a foolproof valuation with a DCF model.  Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued.  For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result.  For Agmo Holdings Berhad, there are three  additional  aspects  you should further examine:   Risks: Take risks, for example - Agmo Holdings Berhad has   4 warning signs  (and 1 which makes us a bit uncomfortable)  we think you should know about.   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. 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 Agmo 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.


Agmo Holdings Berhad Full Year 2023 Earnings: EPS: RM0.021 (vs RM0.028 in FY 2022)

Agmo Holdings Berhad (KLSE:AGMO) Full Year 2023 ResultsKey Financial Results Revenue: RM26.4m (up 60% from FY 2022). Net income: RM7.10m (up 6.0% from FY 2022). Profit margin: 27% (down from 41% in FY 2022). The decrease in margin was driven by higher expenses. EPS: RM0.021.  KLSE:AGMO Earnings and Revenue Growth May 25th 2023 All figures shown in the chart above are for the trailing 12 month (TTM) period Agmo Holdings Berhad shares are down 16% from a week ago.   Risk Analysis Be aware that  Agmo Holdings Berhad is showing  3 warning signs in our investment analysis and 1 of those is concerning... Valuation is complex, but we're helping make it simple.Find out whether Agmo 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.


AppAsia Berhad's (KLSE:APPASIA) Share Price Could Signal Some Risk

With a median price-to-sales (or "P/S") ratio of close to 2.5x in the Software industry in Malaysia, you could be forgiven for feeling indifferent about AppAsia Berhad's  (KLSE:APPASIA) P/S ratio of 2.2x.  However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.      View our latest analysis for AppAsia Berhad KLSE:APPASIA Price to Sales Ratio vs Industry May 6th 2023 How AppAsia Berhad Has Been Performing  For example, consider that AppAsia Berhad's financial performance has been poor lately as its revenue has been in decline.   It might be that many expect the company to put the disappointing revenue performance behind them over the coming period, which has kept the P/S from falling.  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 AppAsia 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 AppAsia Berhad's Revenue Growth Trending?   In order to justify its P/S ratio, AppAsia Berhad would need to produce growth that's similar to the industry.   In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 7.1%.   As a result, revenue from three years ago have also fallen 34% overall.  So unfortunately, we have to acknowledge that the company has not done a great job of growing revenue over that time.     Comparing that to the industry, which is predicted to deliver 32% growth in the next 12 months, the company's downward momentum based on recent medium-term revenue results is a sobering picture.  With this information, we find it concerning that AppAsia Berhad is trading at a fairly similar P/S compared to the industry.  Apparently many investors in the company are way less bearish than recent times would indicate and aren't willing to let go of their stock right now.  Only the boldest would assume these prices are sustainable as a continuation of recent revenue trends is likely to weigh on the share price eventually.    What We Can Learn From AppAsia 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.  We find it unexpected that AppAsia Berhad trades at a P/S ratio that is comparable to the rest of the industry, despite experiencing declining revenues during the medium-term, while the industry as a whole is expected to grow.  When we see revenue heading backwards in the context of growing industry forecasts, it'd make sense to expect a possible share price decline on the horizon, sending the moderate P/S lower.  If recent medium-term revenue trends continue, it will place shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.     It is also worth noting that we have found 3 warning signs for AppAsia Berhad (2 are a bit unpleasant!) that you need to take into consideration.   If these risks are making you reconsider your opinion on AppAsia Berhad, explore our interactive list of high quality stocks to get an idea of what else is out there. Valuation is complex, but we're helping make it simple.Find out whether AppAsia 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.


Does The Market Have A Low Tolerance For AppAsia Berhad's (KLSE:APPASIA) Mixed Fundamentals?

AppAsia Berhad (KLSE:APPASIA) has had a rough week with its share price down 21%.   We, however decided to study the company's financials to determine if they have got anything to do with the price decline.  Fundamentals usually dictate market outcomes so it makes sense to study the company's financials.     Particularly, we will be paying attention to AppAsia 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.  In simpler terms, it measures the profitability of a company in relation to shareholder's equity.  View our latest analysis for AppAsia Berhad  How Is ROE Calculated?  The formula for ROE is:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for AppAsia Berhad is:4.1% = RM998k ÷ RM24m (Based on the trailing twelve months to September 2022). The 'return' is the income the business earned over the last year.  One way to conceptualize this is that for each MYR1 of shareholders' capital it has, the company made MYR0.04 in profit.   What Is The Relationship Between ROE And Earnings Growth?  Thus far, we have learned that ROE measures how efficiently a company is generating its profits.  Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits.  Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.  AppAsia Berhad's Earnings Growth And 4.1% ROE  It is quite clear that AppAsia Berhad's ROE is rather low.   Even when compared to the industry average of 11%, the ROE figure is pretty disappointing.   Therefore, AppAsia Berhad's flat earnings over the past five years can possibly be explained by the low ROE amongst other factors.     Next, on comparing with the industry net income growth, we found that AppAsia Berhad's reported growth was lower than the industry growth of 4.8% in the same period, which is not something we like to see.   KLSE:APPASIA Past Earnings Growth February 23rd 2023 Earnings growth is a huge factor in stock valuation.  It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline).  By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await.    One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if AppAsia Berhad is trading on a high P/E or a low P/E, relative to its industry.    Is AppAsia Berhad Using Its Retained Earnings Effectively?    AppAsia Berhad doesn't pay any dividend, meaning that the company is keeping all of its profits, which makes us wonder why it is retaining its earnings if it can't use them to grow its business.  It looks like there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.     Conclusion    Overall, we have mixed feelings about AppAsia Berhad.      Even though it appears to be retaining most of its profits, given the low ROE, investors may not be benefitting from all that reinvestment after all. The low earnings growth suggests our theory correct.      So far, we've only made a quick discussion around the company's earnings growth.  So it may be worth checking this free detailed graph of AppAsia Berhad's past earnings, as well as revenue and cash flows  to get a deeper insight into the company's performance.  Valuation is complex, but we're helping make it simple.Find out whether AppAsia Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


Here's Why We're Not At All Concerned With AppAsia Berhad's (KLSE:APPASIA) Cash Burn Situation

There's no doubt that money can be made by owning shares of unprofitable businesses.   For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring revenue, if you held shares since 2005, you'd have done very well indeed.   Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed.  Given this risk, we thought we'd take a look at whether AppAsia Berhad (KLSE:APPASIA) shareholders should be worried about its cash burn.   In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth.  We'll start by comparing its cash burn with its cash reserves in order to calculate its cash runway.  View our latest analysis for AppAsia Berhad  How Long Is AppAsia Berhad's Cash Runway?  A company's cash runway is the amount of time it would take to burn through its cash reserves at its current cash burn rate.   As at March 2022, AppAsia Berhad had cash of RM13m and no debt.   In the last year, its cash burn was RM24k.   So it had a very long cash runway of many years from March 2022.     Even though this is but one measure of the company's cash burn, the thought of such a long cash runway warms our bellies in a comforting way.    Depicted below, you can see how its cash holdings have changed over time. KLSE:APPASIA Debt to Equity History July 26th 2022  Is AppAsia Berhad's Revenue Growing?  Given that AppAsia Berhad actually had positive free cash flow last year, before burning cash this year, we'll focus on its operating revenue to get a measure of the business trajectory.    We think that it's fairly positive to see that revenue grew 28% in the last twelve months.    Of course, we've only taken a quick look at the stock's growth metrics, here.   You can take a look at how AppAsia Berhad has developed its business over time by checking  this visualization of its revenue and earnings history.   How Easily Can AppAsia Berhad Raise Cash?  Notwithstanding AppAsia Berhad's revenue growth, it is still important to consider how it could raise more money, if it needs to.    Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business.  Commonly, a business will sell new shares in itself to raise cash and drive growth.  By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate).  AppAsia Berhad has a market capitalisation of RM92m and burnt through RM24k last year, which is 0.03% of the company's market value.    So it could almost certainly just borrow a little to fund another year's growth, or else easily raise the cash by issuing a few shares.   How Risky Is AppAsia Berhad's Cash Burn Situation?  As you can probably tell by now, we're not too worried about AppAsia Berhad's cash burn.  In particular, we think its cash runway stands out as evidence that the company is well on top of its spending.   And even its revenue growth was very encouraging.     After taking into account the various metrics mentioned in this report, we're pretty comfortable with how the company is spending its cash.     Its important for readers to be cognizant of the risks that can affect the company's operations, and we've picked out 2 warning signs for AppAsia Berhad that investors should know when investing in the stock.   If you would prefer to check out another company with better fundamentals, then do not miss this free list of interesting companies, that have HIGH return on equity and low debt or this list of stocks which are all forecast to grow. Valuation is complex, but we're helping make it simple.Find out whether AppAsia 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.


ARB Berhad Full Year 2022 Earnings: EPS: RM0.083 (vs RM0.089 in FY 2021)

ARB Berhad (KLSE:ARBB) Full Year 2022 ResultsKey Financial Results Revenue: RM396.0m (up 74% from FY 2021). Net income: RM60.9m (up 19% from FY 2021). Profit margin: 15% (down from 23% in FY 2021).The decrease in margin was driven by higher expenses. EPS: RM0.083.  KLSE:ARBB Earnings and Revenue History October 24th 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period ARB Berhad shares are down 4.3% 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 ARB 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 ARB 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 Like These Underlying Return On Capital Trends At ARB Berhad (KLSE:ARBB)

To find a multi-bagger stock, what are the underlying trends we should look for in a business?  Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed.  Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return.    So when we looked at ARB Berhad (KLSE:ARBB) and its trend of ROCE, we really liked what we saw.     Understanding Return On Capital Employed (ROCE)  For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business.  To calculate this metric for ARB Berhad, this is the formula:  Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.16 = RM64m ÷ (RM416m - RM21m) (Based on the trailing twelve months to June 2022). Thus, ARB Berhad has an ROCE of 16%.  That's a relatively normal return on capital, and it's around the 19% generated by the IT industry.   View our latest analysis for ARB Berhad KLSE:ARBB Return on Capital Employed July 4th 2023 While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above.  If you want to delve into the historical earnings, revenue and cash flow of ARB Berhad, check out these free graphs here.   How Are Returns Trending?  ARB Berhad has recently broken into profitability so their prior investments seem to be paying off.  About  five years ago the company was generating losses but things have turned around because it's now earning 16% on its capital.  Not only that, but the company is utilizing 1,743% more capital than before, but that's to be expected from a company 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.    The Bottom Line  Overall, ARB Berhad gets a big tick from us thanks in most part to the fact that it is now profitable and is reinvesting in its business.        And since the stock has fallen 26% over the last  five years, there might be an opportunity here.   With that in mind, we believe the promising trends warrant this stock for further investigation.     If you'd like to know more about ARB Berhad, we've spotted   5 warning signs,  and 1 of them is a bit unpleasant.     While ARB 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 ARB 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.


Censof Holdings Berhad (KLSE:CENSOF) Might Have The Makings Of A Multi-Bagger

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues.  One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed.  If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities.    So on that note, Censof Holdings Berhad (KLSE:CENSOF) 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 Censof Holdings Berhad:  Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.14 = RM15m ÷ (RM129m - RM23m) (Based on the trailing twelve months to March 2023). So, Censof Holdings Berhad has an ROCE of 14%.  In absolute terms, that's a pretty normal return, and it's somewhat close to the Software industry average of 13%.   View our latest analysis for Censof Holdings Berhad KLSE:CENSOF Return on Capital Employed June 15th 2023 Historical performance is a great place to start when researching a stock so above you can see the gauge for Censof Holdings Berhad's ROCE against it's prior returns.  If you'd like to look at how Censof Holdings Berhad has performed in the past in other metrics, you can view this free graph of past earnings, revenue and cash flow.  SWOT Analysis for Censof Holdings BerhadStrength Debt is not viewed as a risk. Balance sheet summary for CENSOF. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Software market. Current share price is above our estimate of fair value. Opportunity  CENSOF's financial characteristics indicate limited near-term opportunities for shareholders.Lack of analyst coverage makes it difficult to determine CENSOF's earnings prospects.Threat Dividends are not covered by cash flow.  See CENSOF's dividend history.   What The Trend Of ROCE Can Tell Us  We're delighted to see that Censof Holdings Berhad is reaping rewards from its investments and has now broken into profitability.  Historically the company was generating losses but as we can see from the latest figures referenced above, they're now earning 14% on their capital employed.  At first glance, it seems the business is getting more proficient at generating returns, because over the same period, the amount of capital employed has reduced by 36%.  The reduction could indicate that the company is selling some assets, and considering returns are up, they appear to be selling the right ones.    The Key Takeaway  From what we've seen above, Censof Holdings Berhad has managed to increase it's returns on capital all the while reducing it's capital base.      Since the stock has returned a solid 43% to shareholders over the last  five years, it's fair to say investors are beginning to recognize these changes.   Therefore, we think it would be worth your time to check if these trends are going to continue.    Like most companies, Censof Holdings Berhad does come with some risks, and we've found 3 warning signs  that you should be aware of.    While Censof Holdings Berhad isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Valuation is complex, but we're helping make it simple.Find out whether Censof 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.


Censof Holdings Berhad Second Quarter 2023 Earnings: EPS: RM0.002 (vs RM0.004 in 2Q 2022)

Censof Holdings Berhad (KLSE:CENSOF) Second Quarter 2023 ResultsKey Financial Results Revenue: RM21.2m (down 7.2% from 2Q 2022). Net income: RM1.15m (down 45% from 2Q 2022). Profit margin: 5.4% (down from 9.2% in 2Q 2022). The decrease in margin was driven by lower revenue. EPS: RM0.002 (down from RM0.004 in 2Q 2022).  KLSE:CENSOF Earnings and Revenue History November 17th 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Censof Holdings Berhad shares are down 3.6% from a week ago.   Risk Analysis Don't forget that there may still be risks. For instance, we've identified   2 warning signs for Censof Holdings Berhad  that you should be aware of. Valuation is complex, but we're helping make it simple.Find out whether Censof Holdings Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


Is Censof Holdings Berhad's (KLSE:CENSOF) Recent Stock Performance Tethered To Its Strong Fundamentals?

Censof Holdings Berhad's (KLSE:CENSOF) stock is up by a considerable 17% over the past month.   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 Censof Holdings 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.  Simply put, it is used to assess the profitability of a company in relation to its equity capital.  Check out our latest analysis for Censof Holdings Berhad  How Is ROE Calculated?  The formula for ROE is:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Censof Holdings Berhad is:19% = RM18m ÷ RM98m (Based on the trailing twelve months to June 2022). The 'return' is the amount earned after tax over the last twelve months.  That means that for every MYR1 worth of shareholders' equity, the company generated MYR0.19 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.  A Side By Side comparison of Censof Holdings Berhad's Earnings Growth And 19% ROE  At first glance, Censof Holdings Berhad seems to have a decent ROE.   On comparing with the average industry ROE of 10% the company's ROE looks pretty remarkable.   This certainly adds some context to Censof Holdings Berhad's decent 20% net income growth seen over the past five years.     Next, on comparing with the industry net income growth, we found that Censof Holdings Berhad's growth is quite high when compared to the industry average growth of 6.6% in the same period, which is great to see.   KLSE:CENSOF Past Earnings Growth October 4th 2022 The basis for attaching value to a company is, to a great extent, tied to its earnings growth.  What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price.  By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await.    Is Censof Holdings Berhad fairly valued compared to other companies? These 3 valuation measures might help you decide.    Is Censof Holdings Berhad Efficiently Re-investing Its Profits?   Censof Holdings Berhad's three-year median payout ratio to shareholders is 20% (implying that it retains 80% of its income), which is on the lower side, so it seems like the management is reinvesting profits heavily to grow its business.     Besides, Censof Holdings Berhad has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders.     Conclusion    In total, we are pretty happy with Censof Holdings Berhad's performance.      Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth.        If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices.  Remember, the price of a stock is also dependent on the perceived risk. Therefore investors must keep themselves informed about the risks involved before investing in any company.    You can see the 2 risks we have identified for Censof Holdings 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 Censof 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.


Cloudaron Group Berhad (KLSE:CLOUD) Is Going Strong But Fundamentals Appear To Be Mixed : Is There A Clear Direction For The Stock?

Cloudaron Group Berhad (KLSE:CLOUD) has had a great run on the share market with its stock up by a significant 157% over the last week.   But the company's key financial indicators appear to be differing across the board and that makes us question whether or not the company's current share price momentum can be maintained.      Specifically, we decided to study Cloudaron Group Berhad's  ROE in this article.    ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders.  Put another way, it reveals the company's success at turning shareholder investments into profits.  See our latest analysis for Cloudaron Group Berhad  How To Calculate Return On Equity?  The formula for ROE is:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Cloudaron Group Berhad is:2.0% = RM1.6m ÷ RM81m (Based on the trailing twelve months to September 2022). The 'return' refers to a company's earnings over the last year.  One way to conceptualize this is that for each MYR1 of shareholders' capital it has, the company made MYR0.02 in profit.   Why Is ROE Important For 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.  Cloudaron Group Berhad's Earnings Growth And 2.0% ROE  It is quite clear that Cloudaron Group Berhad's ROE is rather low.   Not just that, even compared to the industry average of 14%, the company's ROE is entirely unremarkable.   Given the circumstances, the significant decline in net income by 33% seen by Cloudaron Group Berhad over the last five years is not surprising.  We believe that there also might be other aspects that are negatively influencing the company's earnings prospects.  Such as - low earnings retention or poor allocation of capital.     Furthermore, even when compared to the industry, which has been shrinking its earnings at a rate 4.0% in the same period, we found that Cloudaron Group Berhad's performance is pretty disappointing, as it suggests that the company has been shrunk its earnings at a rate faster than the industry.   KLSE:CLOUD Past Earnings Growth May 24th 2023 Earnings growth is an important metric to consider when valuing a stock.   It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline).  By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await.    One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Cloudaron Group Berhad is trading on a high P/E or a low P/E, relative to its industry.    Is Cloudaron Group Berhad Efficiently Re-investing Its Profits?   Cloudaron Group Berhad doesn't pay any dividend, meaning that the company is keeping all of its profits, which makes us wonder why it is retaining its earnings if it can't use them to grow its business.  So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds.     Summary    On the whole, we feel that the performance shown by Cloudaron Group Berhad can be open to many interpretations.      While the company does have a high rate of profit retention, its low rate of return is probably hampering its earnings growth.       Wrapping up, we would proceed with caution with this company and one way of doing that would be to look at the risk profile of the business.   To know the 4 risks we have identified for Cloudaron Group Berhad visit our risks dashboard for free. Valuation is complex, but we're helping make it simple.Find out whether Cloudaron 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.


Returns On Capital At Cloudaron Group Berhad (KLSE:CLOUD) Paint A Concerning Picture

To find a multi-bagger stock, what are the underlying trends we should look for in a business?  Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed.  Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return.    In light of that, when we looked at Cloudaron Group Berhad (KLSE:CLOUD) and its ROCE trend, we weren't exactly thrilled.     Return On Capital Employed (ROCE): What Is It?  If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business.  Analysts use this formula to calculate it for Cloudaron Group Berhad:  Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.025 = RM2.1m ÷ (RM104m - RM18m) (Based on the trailing twelve months to September 2022). So, Cloudaron Group Berhad has an ROCE of 2.5%.  In absolute terms, that's a low return and it also under-performs the IT industry average of 12%.   See our latest analysis for Cloudaron Group Berhad KLSE:CLOUD Return on Capital Employed March 25th 2023 Historical performance is a great place to start when researching a stock so above you can see the gauge for Cloudaron Group Berhad's ROCE against it's prior returns.  If you're interested in investigating Cloudaron Group Berhad's past further, check out this free graph of past earnings, revenue and cash flow.   What Does the ROCE Trend For Cloudaron Group Berhad Tell Us?  When we looked at the ROCE trend at Cloudaron Group Berhad, we didn't gain much confidence.   Around  five years ago the returns on capital were 28%, but since then they've fallen to 2.5%.    However, given capital employed and revenue have both increased it appears that the business is currently pursuing growth, at the consequence of short term returns.  And if the increased capital generates additional returns, the business, and thus shareholders, will benefit in the long run.     On a related note, Cloudaron Group Berhad has decreased its current liabilities to 17% of total assets.   So we could link some of this to the decrease in ROCE.   Effectively this means their suppliers or short-term creditors are funding less of the business, which reduces some elements of risk.  Some would claim this reduces the business' efficiency at generating ROCE since it is now funding more of the operations with its own money.     What We Can Learn From Cloudaron Group Berhad's ROCE  In summary, despite lower returns in the short term, we're encouraged to see that Cloudaron Group Berhad is reinvesting for growth and has higher sales as a result.        Despite these promising trends, the stock has collapsed 89% over the last  five years, so there could be other factors hurting the company's prospects.  Therefore, we'd suggest researching the stock further to uncover more about the business.      Cloudaron Group Berhad does have some risks, we noticed   4 warning signs  (and 3 which are a bit unpleasant)  we think you should know about.    While Cloudaron Group 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 Cloudaron 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.


Risks Still Elevated At These Prices As Cloudaron Group Berhad (KLSE:CLOUD) Shares Dive 33%

Cloudaron Group Berhad (KLSE:CLOUD) shareholders won't be pleased to see that the share price has had a very rough month, dropping 33% and undoing the prior period's positive performance.    To make matters worse, the recent drop has wiped out a year's worth of gains with the share price now back where it started a year ago.    Even after such a large drop in price, Cloudaron Group Berhad's price-to-earnings (or "P/E") ratio of 20.4x might still make it look like a strong sell right now compared to the market in Malaysia, where around half of the companies have P/E ratios below 13x and even P/E's below 8x are quite common.  Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.    Earnings have risen firmly for Cloudaron Group Berhad recently, which is pleasing to see.   One possibility is that the P/E is high because investors think this respectable earnings growth will be enough to outperform the broader market in the near future.  You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.     See our latest analysis for Cloudaron Group Berhad KLSE:CLOUD Price Based on Past Earnings March 26th 2023 Although there are no analyst estimates available for Cloudaron Group Berhad, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.   Does Growth Match The High P/E?   Cloudaron Group 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.   Retrospectively, the last year delivered an exceptional 23% gain to the company's bottom line.   Despite this strong recent growth, it's still struggling to catch up as its three-year EPS frustratingly shrank by 73% overall.  So unfortunately, we have to acknowledge that the company has not done a great job of growing earnings over that time.     In contrast to the company, the rest of the market is expected to grow by 11% over the next year, which really puts the company's recent medium-term earnings decline into perspective.  In light of this, it's alarming that Cloudaron Group Berhad's P/E sits above the majority of other companies.  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 very good chance existing shareholders are setting themselves up for future disappointment if the P/E falls to levels more in line with the recent negative growth rates.    The Final Word  Cloudaron Group Berhad's shares may have retreated, but its P/E is still flying high.     Generally, our preference is to limit the use of the price-to-earnings ratio to establishing what the market thinks about the overall health of a company.  Our examination of Cloudaron Group Berhad revealed its shrinking earnings over the medium-term aren't impacting its high P/E anywhere near as much as we would have predicted, given the market is set to grow.  When we see earnings heading backwards and underperforming the market forecasts, 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.     Before you settle on your opinion, we've discovered 4 warning signs for Cloudaron Group Berhad (3 are significant!) that you should be aware of.   Of course, you might also be able to find a better stock than Cloudaron Group Berhad. So you may wish to see this free collection of other companies that sit on P/E's below 20x and have grown earnings strongly. Valuation is complex, but we're helping make it simple.Find out whether Cloudaron 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.


Cuscapi Berhad Full Year 2022 Earnings: RM0.006 loss per share (vs RM0.018 loss in FY 2021)

Cuscapi Berhad (KLSE:CUSCAPI) Full Year 2022 ResultsKey Financial Results Revenue: RM9.90m (down 1.0% from FY 2021). Net loss: RM5.30m (loss narrowed by 66% from FY 2021). RM0.006 loss per share (improved from RM0.018 loss in FY 2021).  KLSE:CUSCAPI Earnings and Revenue History November 2nd 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Cuscapi Berhad shares are up 4.2% from a week ago.   Risk Analysis Before we wrap up, we've discovered 5 warning signs for Cuscapi Berhad (1 doesn't sit too well with us!) that you should be aware of.Valuation is complex, but we're helping make it simple.Find out whether Cuscapi 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.


The 17% return this week takes Cuscapi Berhad's (KLSE:CUSCAPI) shareholders three-year gains to 88%

By buying an index fund, investors can approximate the average market return.  But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return.  For example, Cuscapi Berhad (KLSE:CUSCAPI) shareholders have seen the share price rise 88% over three years, well in excess of the market decline (0.6%, not including dividends).     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 Cuscapi Berhad   Cuscapi Berhad wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option.  Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip.  Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.   In the last 3 years Cuscapi Berhad saw its revenue shrink by 43% per year.   The revenue growth might be lacking but the share price has gained 24% each year in that time.  If the company is cutting costs profitability could be on the horizon, but the revenue decline is a prima facie concern.      The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail). KLSE:CUSCAPI Earnings and Revenue Growth February 18th 2023 If you are thinking of buying or selling Cuscapi Berhad stock, you should check out this FREE detailed report on its balance sheet.  A Different Perspective We regret to report that Cuscapi Berhad shareholders are down 40% for the year. Unfortunately, that's worse than the broader market decline of 1.5%.  Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments.     Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 9% 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.        It's always interesting to track share price performance over the longer term. But to understand Cuscapi Berhad better, we need to consider many other factors.   Like risks, for instance. Every company has them, and we've spotted   4 warning signs for Cuscapi Berhad   (of which 1 is a bit concerning!) you should know about.     If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on MY exchanges.Valuation is complex, but we're helping make it simple.Find out whether Cuscapi 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.


Dataprep Holdings Bhd Full Year 2022 Earnings: RM0.026 loss per share (vs RM0.017 loss in FY 2021)

Dataprep Holdings Bhd (KLSE:DATAPRP) Full Year 2022 ResultsKey Financial Results Revenue: RM28.1m (down 22% from FY 2021). Net loss: RM17.3m (loss widened by 58% from FY 2021). RM0.026 loss per share (further deteriorated from RM0.017 loss in FY 2021).  KLSE:DATAPRP Earnings and Revenue History March 2nd 2023 All figures shown in the chart above are for the trailing 12 month (TTM) period Dataprep Holdings Bhd shares are down 9.3% from a week ago.   Risk Analysis It is worth noting though that we have found 4 warning signs for Dataprep Holdings Bhd (2 are a bit unpleasant!) that you need to take into consideration. Valuation is complex, but we're helping make it simple.Find out whether Dataprep Holdings Bhd 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 Fair Value Of Divfex Berhad (KLSE:DFX)

Today we will run through one way of estimating the intrinsic value of Divfex Berhad (KLSE:DFX) by taking the expected future cash flows and discounting them to their present value.  The Discounted Cash Flow (DCF) model is the tool we will apply to do this.  Believe it or not, it's not too difficult to follow, as you'll see from our example!  We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws.  Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.  Check out the opportunities and risks within the MY IT industry.  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.  To start off with, we need to estimate the next ten years of cash flows.   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,  so we discount the value of these future cash flows to their estimated value in today's dollars:  10-year free cash flow (FCF) estimate  2023 2024 2025 2026 2027 2028 2029 2030 2031 2032  Levered FCF (MYR, Millions)  RM1.68m RM2.56m RM3.53m RM4.50m RM5.42m RM6.25m RM6.98m RM7.63m RM8.21m RM8.74m Growth Rate Estimate Source Est @ 73.5% Est @ 52.52% Est @ 37.83% Est @ 27.54% Est @ 20.35% Est @ 15.31% Est @ 11.78% Est @ 9.31% Est @ 7.58% Est @ 6.37%  Present Value (MYR, Millions) Discounted @ 11%  RM1.5 RM2.1 RM2.6 RM3.0 RM3.3 RM3.4 RM3.5 RM3.4 RM3.3 RM3.2 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM29m After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage.  For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (3.6%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 11%. Terminal Value (TV)= FCF2032 × (1 + g) ÷ (r – g) = RM8.7m× (1 + 3.6%) ÷ (11%– 3.6%) = RM130mPresent Value of Terminal Value (PVTV)= TV / (1 + r)10= RM130m÷ ( 1 + 11%)10= RM48m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value,  which in this case is RM77m.  The last step is to then divide the equity value by the number of shares outstanding.  Relative to the current share price of RM0.1, the company appears   about fair value    at a 7.6% discount to where the stock price trades currently.   Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. KLSE:DFX Discounted Cash Flow November 2nd 2022  Important Assumptions  Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.  You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them.  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 Divfex 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 11%, which is based on a levered beta of 1.064. 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.   Looking Ahead:  Although the valuation of a company is important, it  ideally won't be the sole piece of analysis you scrutinize for a company.  DCF models are not the be-all and end-all of investment valuation.  Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation.  For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation.  For Divfex Berhad, we've put together three  fundamental  aspects  you should assess:   Risks: We feel that you should assess the 3 warning signs for Divfex Berhad (1 is a bit concerning!) we've flagged before making an investment in the company.   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 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. 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 Divfex 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.


Divfex Berhad Full Year 2022 Earnings: EPS: RM0.002 (vs RM0.025 loss in FY 2021)

Divfex Berhad (KLSE:DFX) Full Year 2022 ResultsKey Financial Results Revenue: RM15.9m (up 59% from FY 2021). Net income: RM1.50m (up from RM18.4m loss in FY 2021). Profit margin: 9.4% (up from net loss in FY 2021). EPS: RM0.002 (up from RM0.025 loss in FY 2021).  KLSE:DFX Earnings and Revenue History November 3rd 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Divfex Berhad shares are up 13% from a week ago.   Risk Analysis You should learn about the   4 warning signs  we've spotted with Divfex Berhad (including 1 which is potentially serious).Valuation is complex, but we're helping make it simple.Find out whether Divfex 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.


Divfex Berhad (KLSE:DFX) Has A Rock Solid Balance Sheet

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.'  When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin.  Importantly, Divfex Berhad (KLSE:DFX) does carry debt.  But is this debt a concern to shareholders?  What Risk Does Debt Bring?  Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price.  Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing.  However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control.  By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return.  When we examine debt levels, we first consider both cash and debt levels, together.   View our latest analysis for Divfex Berhad  How Much Debt Does Divfex Berhad Carry?  The image below, which you can click on for greater detail, shows that at September 2022 Divfex Berhad had debt of RM7.86m, up from RM3.46m in one year.    But on the other hand it also has RM25.4m in cash, leading to a RM17.5m net cash position.  KLSE:DFX Debt to Equity History December 29th 2022 How Strong Is Divfex Berhad's Balance Sheet?  We can see from the most recent balance sheet that Divfex Berhad had liabilities of RM19.0m falling due within a year, and liabilities of RM3.49m due beyond that.   Offsetting this, it had RM25.4m in cash and RM10.5m in receivables that were due within 12 months.   So it can boast RM13.4m more liquid assets than total liabilities.   It's good to see that Divfex Berhad has plenty of liquidity on its balance sheet, suggesting conservative management of liabilities.  Given it has easily adequate short term liquidity, we don't think it will have any issues with its lenders.    Simply put, the fact that Divfex Berhad has more cash than debt is arguably a good indication that it can manage its debt safely.    Although Divfex Berhad made a loss at the EBIT level, last year, it was also good to see that it generated RM4.0m in EBIT over the last twelve months.     When analysing debt levels, the balance sheet is the obvious place to start.  But you can't view debt in total isolation; since Divfex 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.  Finally, a company can only pay off debt with cold hard cash, not accounting profits.   Divfex Berhad may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt.    Happily for any shareholders, Divfex Berhad actually produced more free cash flow than EBIT over the last year.  There's nothing better than incoming cash when it comes to staying in your lenders' good graces.    Summing Up While we empathize with investors who find debt concerning, you should keep in mind that Divfex Berhad has net cash of RM17.5m, as well as more liquid assets than liabilities.     And it impressed us with free cash flow of RM7.6m, being 194% of its EBIT.     So we don't think Divfex Berhad's use of debt is risky.    The balance sheet is clearly the area to focus on when you are analysing debt.  However, not all investment risk resides within the balance sheet - far from it.   For example, we've discovered 4 warning signs for Divfex Berhad (1 is a bit unpleasant!) that you should be aware of before investing here.     Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today. Valuation is complex, but we're helping make it simple.Find out whether Divfex 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.


Divfex Berhad's (KLSE:DFX) Financials Are Too Obscure To Link With Current Share Price Momentum: What's In Store For the Stock?

Most readers would already be aware that Divfex Berhad's (KLSE:DFX) stock increased significantly by 40% over the past three months.   However, we decided to pay attention to the company's fundamentals which don't appear to give a clear sign about the company's financial health.      Particularly, we will be paying attention to Divfex 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.  Check out our latest analysis for Divfex 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 Divfex Berhad is:7.9% = RM2.6m ÷ RM33m (Based on the trailing twelve months to December 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 MYR0.08 in profit.   What Is The Relationship Between ROE And Earnings Growth?  Thus far, we have learned that ROE measures how efficiently a company is generating its profits.  We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company.  Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.  Divfex Berhad's Earnings Growth And 7.9% ROE  When you first look at it, Divfex Berhad's ROE doesn't look that attractive.   We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 12%.   Given the circumstances, the significant decline in net income by 25% seen by Divfex Berhad over the last five years is not surprising.  However, there could also be other factors causing the earnings to decline.  For example, it is possible that the business has allocated capital poorly or that the company has a very high payout ratio.     As a next step, we compared Divfex Berhad's performance with the industry and found thatDivfex Berhad's performance is depressing even when compared with the industry, which has shrunk its earnings at a rate of 3.4% in the same period, which is a slower than the company.   KLSE:DFX Past Earnings Growth April 26th 2023 Earnings growth is a huge factor in stock valuation.  It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline).  By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await.    If you're wondering about Divfex Berhad's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.    Is Divfex Berhad Efficiently Re-investing Its Profits?   Divfex Berhad doesn't pay any dividend, meaning that potentially all of its profits are being reinvested in the business, which doesn't explain why the company's earnings have shrunk if it is retaining all of its profits.  So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds.     Summary    Overall, we have mixed feelings about Divfex Berhad.      Even though it appears to be retaining most of its profits, given the low ROE, investors may not be benefitting from all that reinvestment after all. The low earnings growth suggests our theory correct.       Wrapping up, we would proceed with caution with this company and one way of doing that would be to look at the risk profile of the business.    Our risks dashboard would have the 3 risks we have identified for Divfex Berhad.    Valuation is complex, but we're helping make it simple.Find out whether Divfex 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.


Digistar Corporation Berhad Full Year 2022 Earnings: RM0.006 loss per share (vs RM0.023 loss in FY 2021)

Digistar Corporation Berhad (KLSE:DIGISTA) Full Year 2022 ResultsKey Financial Results Revenue: RM49.5m (up 200% from FY 2021). Net loss: RM5.17m (loss narrowed by 22% from FY 2021). RM0.006 loss per share (improved from RM0.023 loss in FY 2021).  KLSE:DIGISTA Earnings and Revenue History December 5th 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Digistar Corporation Berhad shares are down 5.6% from a week ago.   Risk Analysis It's necessary to consider the ever-present spectre of investment risk.   We've identified 2 warning signs  with Digistar Corporation Berhad (at least 1 which doesn't sit too well with us), and understanding them should be part of your investment process. Valuation is complex, but we're helping make it simple.Find out whether Digistar 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.


Digistar Corporation Berhad's (KLSE:DIGISTA) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights Digistar Corporation Berhad's Annual General Meeting to take place on 10th of March   Total pay for CEO Wira Lee includes RM1.30m salary   Total compensation is 62% above industry average    Digistar Corporation Berhad's EPS declined by 5.4%  over the past three years  while total shareholder loss over the past three years was 7.2%   The results at Digistar Corporation Berhad (KLSE:DIGISTA) have been quite disappointing recently and CEO Wira Lee bears some responsibility for this.  Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 10th of March.  This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration.  From our analysis, we think CEO compensation may need a review in light of the recent performance.    Check out our latest analysis for Digistar Corporation Berhad  Comparing Digistar Corporation Berhad's CEO Compensation With The Industry  Our data indicates that Digistar Corporation Berhad has a market capitalization of RM36m, and total annual CEO compensation was reported as RM1.3m for the year to September 2022.   We note that's an increase of 33% above last year.    It is worth noting that the CEO compensation consists entirely of the salary, worth RM1.3m.   On comparing similar-sized companies in the Malaysian IT industry with market capitalizations below RM894m, we found that the median total CEO compensation was RM798k.    Accordingly, our analysis reveals that Digistar Corporation Berhad pays Wira Lee north of the industry median.  Component20222021Proportion (2022)Salary RM1.3m RM972k 100% Other - - - Total CompensationRM1.3m RM972k100% On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration.    At the company level, Digistar Corporation Berhad pays Wira Lee solely through a salary, preferring to go down a conventional route.    If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.  KLSE:DIGISTA CEO Compensation March 3rd 2023 A Look at Digistar Corporation Berhad's Growth Numbers   Over the last three years, Digistar Corporation Berhad has shrunk its earnings per share by 5.4% per year.     Its revenue is up 12% over the last year.    Few shareholders would be pleased to read that EPS have declined.    While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years.   So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.    We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.   Has Digistar Corporation Berhad Been A Good Investment? With a three year total loss of 7.2% for the shareholders, Digistar Corporation Berhad would certainly have some dissatisfied shareholders.   Therefore, it might be upsetting for shareholders if the CEO were paid generously.    In Summary...  Digistar Corporation Berhad rewards its CEO solely through a salary, ignoring non-salary benefits completely.    Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise.  At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.   CEO pay is simply one of the many factors that need to be considered while examining business performance.  We identified 3 warning signs for Digistar Corporation Berhad (2 are significant!) that you should be aware of before investing here.   Important note: Digistar Corporation Berhad is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.  Valuation is complex, but we're helping make it simple.Find out whether Digistar 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.