Homeritz Corporation Berhad's (KLSE:HOMERIZ) Upcoming Dividend Will Be Larger Than Last Year's

Homeritz Corporation Berhad's (KLSE:HOMERIZ) periodic dividend will be increasing on the 10th of March to MYR0.01, with investors receiving 67% more than last year's MYR0.006.       Based on this payment, the dividend yield for the company will be 3.6%, which is fairly typical for the industry.    See our latest analysis for Homeritz Corporation Berhad  Homeritz Corporation Berhad's Earnings Easily Cover The Distributions  While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible.     Before making this announcement, Homeritz Corporation Berhad was easily earning enough to cover the dividend.  As a result, a large proportion of what it earned was being reinvested back into the business.    EPS is set to fall by 31.3% over the next 12 months.   If the dividend continues along the path it has been on recently, we estimate the payout ratio could be 27%, which is comfortable for the company to continue in the future.     KLSE:HOMERIZ Historic Dividend January 17th 2023 Dividend Volatility  While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years.      Since 2013, the annual payment back then was MYR0.016, compared to the most recent full-year payment of MYR0.02.      This works out to be a compound annual growth rate (CAGR) of approximately 2.3% a year over that time.     Modest growth in the dividend is good to see, but we think this is offset by historical cuts to the payments. It is hard to live on a dividend income if the company's earnings are not consistent.     The Dividend's Growth Prospects Are Limited  Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend.      Although it's important to note that Homeritz Corporation Berhad's earnings per share has basically not grown from where it was five years ago, which could erode the purchasing power of the dividend over time.      If Homeritz Corporation Berhad is struggling to find viable investments, it always has the option to increase its payout ratio to pay more to shareholders.     We should note that Homeritz Corporation Berhad has issued stock equal to 12% of shares outstanding.  Regularly doing this can be detrimental - it's hard to grow dividends per share when new shares are regularly being created.  Our Thoughts On Homeritz Corporation Berhad's Dividend  Overall, this is a reasonable dividend, and it being raised is an added bonus.      The dividend has been at reasonable levels historically, but that hasn't translated into a consistent payment.     The dividend looks okay, but there have been some issues in the past, so we would be a little bit cautious.   Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach.  At the same time, there are other factors our readers should be conscious of before pouring capital into a stock.   Just as an example, we've come across 4 warning signs for Homeritz Corporation Berhad you should be aware of, and 1 of them is concerning.    If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Valuation is complex, but we're helping make it simple.Find out whether Homeritz Corporation Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


Dividend Investors: Don't Be Too Quick To Buy Jaycorp Berhad (KLSE:JAYCORP) For Its Upcoming Dividend

Readers hoping to buy Jaycorp Berhad (KLSE:JAYCORP) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend.  Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible to receive a dividend.  The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date.   Therefore, if you purchase Jaycorp Berhad's shares on or after the 15th of December, you won't be eligible to receive the dividend, when it is paid on the 30th of December.   The company's next dividend payment will be RM0.04 per share, and in the last 12 months, the company paid a total of RM0.04 per share.  Looking at the last 12 months of distributions, Jaycorp Berhad has a trailing yield of approximately 8.1% on its current stock price of MYR0.74.    We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose!  As a result, readers should always check whether Jaycorp Berhad has been able to grow its dividends, or if the dividend might be cut.  Check out the opportunities and risks within the MY Consumer Durables industry.  Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut.   Jaycorp Berhad paid out 72% of its earnings to investors last year, a normal payout level for most businesses.     Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend.     It paid out more than half (63%) of its free cash flow in the past year, which is within an average range for most companies.      It's positive to see that Jaycorp Berhad's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.   Click here to see how much of its profit Jaycorp Berhad paid out over the last 12 months. KLSE:JAYCORP Historic Dividend December 11th 2022 Have Earnings And Dividends Been Growing? Companies that aren't growing their earnings can still be valuable, but it is even more important to assess the sustainability of the dividend if it looks like the company will struggle to grow.   If business enters a downturn and the dividend is cut, the company could see its value fall precipitously.     That explains why we're not overly excited about Jaycorp Berhad's flat earnings over the past five years.  We'd take that over an earnings decline any day, but in the long run, the best dividend stocks all grow their earnings per share.       Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time.     In the past 10 years, Jaycorp Berhad has increased its dividend at approximately 13% a year on average.      The Bottom Line  Is Jaycorp Berhad an attractive dividend stock, or better left on the shelf?      While earnings per share are flat, at least Jaycorp Berhad has not committed itself to an unsustainable dividend, with its earnings and cashflow payout ratios within reasonable bounds.        Bottom line: Jaycorp Berhad has some unfortunate characteristics that we think could lead to sub-optimal outcomes for dividend investors.    So if you're still interested in Jaycorp Berhad despite it's poor dividend qualities, you should be well informed on some of the risks facing this stock.     We've identified 3 warning signs with Jaycorp Berhad (at least 1 which can't be ignored), and understanding them should be part of your investment process.   Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Valuation is complex, but we're helping make it simple.Find out whether Jaycorp Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


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Robust Earnings May Not Tell The Whole Story For UMediC Group Berhad (KLSE:UMC)

UMediC Group Berhad (KLSE:UMC) just released a solid earnings report, and the stock displayed some strength.  However, we think that shareholders should be cautious as we found some worrying factors underlying the profit.     See our latest analysis for UMediC Group Berhad KLSE:UMC Earnings and Revenue History March 13th 2023  A Closer Look At UMediC Group Berhad's Earnings  In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow).  To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period.  The ratio shows us how much a company's profit exceeds its FCF.  Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive.  While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow.  That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth.  UMediC Group Berhad has an accrual ratio of 0.22 for the year to January 2023.   Therefore, we know that it's free cashflow was significantly lower than its statutory profit, which is hardly a good thing.    Even though it reported a profit of RM6.76m, a look at free cash flow indicates it actually burnt through RM1.6m in the last year.    It's worth noting that UMediC Group Berhad generated positive FCF of RM937k a year ago, so at least they've done it in the past.   That might leave you wondering what analysts are forecasting in terms of future profitability.  Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.   Our Take On UMediC Group Berhad's Profit Performance UMediC Group Berhad's accrual ratio for the last twelve months signifies cash conversion is less than ideal, which is a negative when it comes to our view of its earnings.      Because of this, we think that it may be that UMediC Group Berhad's statutory profits are better than its underlying earnings power.    But on the bright side, its earnings per share have grown at an extremely impressive rate over the last three years.     Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors.     So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing.    To that end, you should learn about the 2 warning signs we've spotted with UMediC Group Berhad (including 1 which is significant).  This note has only looked at a single factor that sheds light on the nature of UMediC Group Berhad's profit.   But there are plenty of other ways to inform your opinion of a company.  Some people consider a high return on equity to be a good sign of a quality business.  So you may wish to see this free  collection of companies boasting high return on equity, or  this list of stocks that insiders are buying. Valuation is complex, but we're helping make it simple.Find out whether UMediC 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.


UMediC Group Berhad Second Quarter 2023 Earnings: EPS: RM0.008 (vs RM0.002 in 2Q 2022)

UMediC Group Berhad (KLSE:UMC) Second Quarter 2023 ResultsKey Financial Results Revenue: RM12.5m (up 69% from 2Q 2022). Net income: RM2.91m (up 412% from 2Q 2022). Profit margin: 23% (up from 7.7% in 2Q 2022). The increase in margin was driven by higher revenue. EPS: RM0.008 (up from RM0.002 in 2Q 2022).  KLSE:UMC Earnings and Revenue Growth March 8th 2023 All figures shown in the chart above are for the trailing 12 month (TTM) period UMediC Group Berhad Earnings Insights  Looking ahead, revenue is forecast to grow 24% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Healthcare industry in Malaysia.    Performance of the Malaysian Healthcare industry.  The company's shares are up 12% from a week ago.   Risk Analysis What about risks? Every company has them, and we've spotted   2 warning signs for UMediC Group Berhad   (of which 1 is a bit concerning!) you should know about.  Valuation is complex, but we're helping make it simple.Find out whether UMediC 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.


Bioalpha Holdings Berhad Third Quarter 2022 Earnings: RM0.005 loss per share (vs RM0.001 profit in 3Q 2021)

Bioalpha Holdings Berhad (KLSE:BIOHLDG) Third Quarter 2022 ResultsKey Financial Results Revenue: RM7.27m (down 74% from 3Q 2021). Net loss: RM6.89m (down from RM1.57m profit in 3Q 2021). RM0.005 loss per share (down from RM0.001 profit in 3Q 2021).  KLSE:BIOHLDG Earnings and Revenue History December 4th 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Bioalpha Holdings Berhad's share price is broadly unchanged from a week ago.   Risk Analysis Don't forget that there may still be risks. For instance, we've identified   4 warning signs for Bioalpha Holdings Berhad (2 can't be ignored)  you should be aware of. Valuation is complex, but we're helping make it simple.Find out whether Bioalpha 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 Bioalpha Holdings Berhad (KLSE:BIOHLDG) A Risky Investment?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.'  It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses.  As with many other companies Bioalpha Holdings Berhad (KLSE:BIOHLDG) makes use of debt.  But the more important question is: how much risk is that debt creating?  What Risk Does Debt Bring?  Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy.  Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing.  However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders.  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 think about a company's use of debt, we first look at cash and debt together.   See our latest analysis for Bioalpha Holdings Berhad  How Much Debt Does Bioalpha Holdings Berhad Carry?  As you can see below, Bioalpha Holdings Berhad had RM6.95m of debt at December 2022, down from RM9.34m a year prior.    However, it does have RM47.7m in cash offsetting this, leading to net cash of RM40.7m.  KLSE:BIOHLDG Debt to Equity History March 19th 2023 How Healthy Is Bioalpha Holdings Berhad's Balance Sheet?  According to the last reported balance sheet, Bioalpha Holdings Berhad had liabilities of RM14.7m due within 12 months, and liabilities of RM14.7m due beyond 12 months.   Offsetting these obligations, it had cash of RM47.7m as well as receivables valued at RM24.3m due within 12 months.   So it actually has RM42.5m more liquid assets than total liabilities.    This excess liquidity suggests that Bioalpha Holdings Berhad is taking a careful approach to debt.  Given it has easily adequate short term liquidity, we don't think it will have any issues with its lenders.    Succinctly put, Bioalpha Holdings Berhad boasts net cash, so it's fair to say it does not have a heavy debt load!      The balance sheet is clearly the area to focus on when you are analysing debt.  But you can't view debt in total isolation; since Bioalpha Holdings Berhad will need earnings to service that debt.  So when considering debt, it's definitely worth looking at the earnings trend. Click here for an interactive snapshot.   Over 12 months, Bioalpha Holdings Berhad made a loss at the EBIT level, and saw its revenue drop to RM36m, which is a fall of 63%.   That makes us nervous, to say the least.    So How Risky Is Bioalpha Holdings Berhad? By their very nature companies that are losing money are more risky than those with a long history of profitability.  And the fact is that over the last twelve months Bioalpha Holdings Berhad lost money at the earnings before interest and tax (EBIT) line.  Indeed, in that time it burnt through RM10.0m of cash and made a loss of RM47m.   Given it only has net cash of RM40.7m, the company may need to raise more capital if it doesn't reach break-even soon.    Even though its balance sheet seems sufficiently liquid, debt always makes us a little nervous if a company doesn't produce free cash flow regularly.    There's no doubt that we learn most about debt from the balance sheet.  However, not all investment risk resides within the balance sheet - far from it.   For example, we've discovered 4 warning signs for Bioalpha Holdings Berhad (1 is potentially serious!) 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 Bioalpha 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.


Eng Kah Corporation Berhad Full Year 2022 Earnings: RM0.032 loss per share (vs RM0.048 loss in FY 2021)

Eng Kah Corporation Berhad (KLSE:ENGKAH) Full Year 2022 ResultsKey Financial Results Revenue: RM50.2m (up 3.5% from FY 2021). Net loss: RM3.73m (loss narrowed by 35% from FY 2021). RM0.032 loss per share (improved from RM0.048 loss in FY 2021).  KLSE:ENGKAH Earnings and Revenue History February 26th 2023 All figures shown in the chart above are for the trailing 12 month (TTM) period Eng Kah Corporation Berhad shares are down 3.6% from a week ago.   Risk Analysis You should always think about risks. Case in point, we've spotted   2 warning signs for Eng Kah Corporation Berhad  you should be aware of, and 1 of them is potentially serious.  Valuation is complex, but we're helping make it simple.Find out whether Eng Kah 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.


Hextar Healthcare Berhad Third Quarter 2022 Earnings: RM0.005 loss per share (vs RM0.03 profit in 3Q 2021)

Hextar Healthcare Berhad (KLSE:HEXCARE) Third Quarter 2022 ResultsKey Financial Results Revenue: RM35.9m (down 62% from 3Q 2021). Net loss: RM4.37m (down by 117% from RM25.2m profit in 3Q 2021). RM0.005 loss per share (down from RM0.03 profit in 3Q 2021).  KLSE:HEXCARE Earnings and Revenue History November 24th 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Hextar Healthcare Berhad's share price is broadly unchanged from a week ago.   Risk Analysis What about risks? Every company has them, and we've spotted   4 warning signs for Hextar Healthcare Berhad   you should know about.  Valuation is complex, but we're helping make it simple.Find out whether Hextar Healthcare 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 five-year decline in earnings for Hextar Healthcare Berhad KLSE:HEXCARE) isn't encouraging, but shareholders are still up 53% over that period

Hextar Healthcare Berhad (KLSE:HEXCARE) shareholders might be concerned after seeing the share price drop 27% in the last quarter.    On the bright side the returns have been quite good over the last half decade.  After all, the share price is up a market-beating 43% in that time.      Since the long term performance has been good but there's been a recent pullback of 16%, let's check if the fundamentals match the share price.   Check out our latest analysis for Hextar Healthcare Berhad   While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational.  One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.   During five years of share price growth, Hextar Healthcare Berhad actually saw its EPS drop 16% per year.   Essentially, it doesn't seem likely that investors are focused on EPS.  Because earnings per share don't seem to match up with the share price, we'll take a look at other metrics instead.  On the other hand, Hextar Healthcare Berhad's revenue is growing nicely, at a compound rate of 19% over the last five years.  It's quite possible that management are prioritizing revenue growth over EPS growth at the moment.      The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers). KLSE:HEXCARE Earnings and Revenue Growth March 1st 2023 You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.  What About The Total Shareholder Return (TSR)? We've already covered Hextar Healthcare Berhad's share price action, but we should also mention its total shareholder return (TSR).  The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders.    Hextar Healthcare Berhad's TSR of 53% for the 5 years exceeded its share price return, because it has paid dividends.    A Different Perspective While the broader market lost about 3.1% in the twelve months, Hextar Healthcare Berhad shareholders did even worse, losing 30%.  However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity.     On the bright side, long term shareholders have made money, with a gain of 9% per year over half a decade.  It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend.        While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important.   To that end, you should be aware of the   4 warning signs  we've spotted with Hextar Healthcare Berhad .    If you are like me, then you will not want to miss this free list of growing companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on MY exchanges.Valuation is complex, but we're helping make it simple.Find out whether Hextar Healthcare 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.


Calculating The Intrinsic Value Of Karex Berhad (KLSE:KAREX)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Karex Berhad (KLSE:KAREX) as an investment opportunity  by taking the expected future cash flows and discounting them to their present value.  One way to achieve this is by employing the Discounted Cash Flow (DCF) model.  Don't get put off by the jargon, the math behind it is actually quite straightforward.  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.   Check out our latest analysis for Karex Berhad   Crunching The Numbers   We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period.  To start off with, we need to estimate the next ten years of cash flows.   Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or 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)  -RM6.65m RM9.56m RM17.8m RM24.9m RM32.1m RM38.9m RM45.2m RM50.7m RM55.6m RM59.9m Growth Rate Estimate Source Analyst x1 Analyst x1 Analyst x1 Est @ 39.85% Est @ 28.96% Est @ 21.33% Est @ 16% Est @ 12.26% Est @ 9.65% Est @ 7.82%  Present Value (MYR, Millions) Discounted @ 10%  -RM6.0 RM7.9 RM13.3 RM16.8 RM19.7 RM21.7 RM22.8 RM23.2 RM23.1 RM22.6 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM165m 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 10%. Terminal Value (TV)= FCF2032 × (1 + g) ÷ (r – g) = RM60m× (1 + 3.6%) ÷ (10%– 3.6%) = RM927mPresent Value of Terminal Value (PVTV)= TV / (1 + r)10= RM927m÷ ( 1 + 10%)10= RM350m The total value, or equity value, is then the sum of the present value of the future cash flows,  which in this case is RM515m.  The last step is to then divide the equity value by the number of shares outstanding.  Compared to the current share price of RM0.4, the company appears   about fair value    at a 17% 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:KAREX Discounted Cash Flow October 26th 2022  The Assumptions  We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.  Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions.  The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance.  Given that we are looking at Karex 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 10%, which is based on a levered beta of 1.117. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.   Moving On:  Whilst important, the DCF calculation  shouldn't be the only metric you look at when researching a company.  The DCF model is not a perfect stock valuation tool.  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.  If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different.  For Karex Berhad, we've compiled three  additional  items  you should assess:   Risks: To that end, you should be aware of the   1 warning sign  we've spotted with Karex Berhad .  Future Earnings: How does KAREX's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. 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!   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 Karex 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.


Karex Berhad Full Year 2022 Earnings: Misses Expectations

Karex Berhad (KLSE:KAREX) Full Year 2022 ResultsKey Financial Results Revenue: RM421.6m (flat on FY 2021). Net loss: RM6.19m (loss widened by RM5.17m from FY 2021). RM0.006 loss per share (further deteriorated from RM0.001 loss in FY 2021).  KLSE:KAREX Earnings and Revenue Growth October 31st 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Karex Berhad Revenues and Earnings Miss Expectations  Revenue missed analyst estimates by 6.2%.  Earnings per share (EPS) also missed analyst estimates by 61%.      Looking ahead, revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Personal Products industry in Asia.    Performance of the market in Malaysia.  The company's shares are up 7.8% from a week ago.   Risk Analysis Before you take the next step you should know about the 1 warning sign for Karex Berhad that we have uncovered.Valuation is complex, but we're helping make it simple.Find out whether Karex 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.


Karex Berhad (KLSE:KAREX) Just Released Its Full-Year Earnings: Here's What Analysts Think

As you might know, Karex Berhad (KLSE:KAREX) last week released its latest annual, and things did not turn out so great for shareholders.      Revenues missed expectations somewhat, coming in at RM422m, but statutory earnings fell catastrophically short, with a loss of RM0.0059 some 61% larger than what the analysts had predicted.     The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of.  We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.   Check out our latest analysis for Karex Berhad KLSE:KAREX Earnings and Revenue Growth August 31st 2022 After the latest results, the twin analysts covering Karex Berhad are now predicting revenues of RM478.7m in 2023. If met, this would reflect a notable 14% improvement in sales compared to the last 12 months.      Earnings are expected to improve, with Karex Berhad forecast to report a statutory profit of RM0.006 per share.       Before this earnings report, the analysts had been forecasting revenues of RM501.5m and earnings per share (EPS) of RM0.0087 in 2023.        From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.      Despite the cuts to forecast earnings, there was no real change to the RM0.40 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.       Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Karex Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 1.4% p.a. over the past five years.    By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.9% per year.  It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Karex Berhad to grow faster than the wider industry.     The Bottom Line  The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results.        They also downgraded their revenue estimates, although industry data suggests that Karex Berhad's revenues are expected to grow faster than the wider industry.       The consensus price target held steady at RM0.40, with the latest estimates not enough to have an impact on their price targets.   With that in mind, we wouldn't be too quick to come to a conclusion on Karex Berhad. Long-term earnings power is much more important than next year's profits.   At least one analyst has provided forecasts out to 2025, which can be seen for free  on our platform here.  However, before you get too enthused, we've discovered 1 warning sign for Karex Berhad that you should be aware of.  Valuation is complex, but we're helping make it simple.Find out whether Karex 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.


Karex Berhad (KLSE:KAREX) shareholder returns have been notable, earning 61% in 1 year

If you want to compound wealth in the stock market, you can do so by buying an index fund.  But you can significantly boost your returns by picking above-average stocks.  For example, the Karex Berhad (KLSE:KAREX) share price is up 61% in the last 1 year, clearly besting the market decline of around 3.2% (not including dividends).  That's a solid performance by our standards!    And shareholders have also done well over the long term, with an increase of 44% in the last three years.     The past week has proven to be lucrative for Karex Berhad investors, so let's see if fundamentals drove the company's one-year performance.    Our analysis indicates that KAREX is potentially undervalued!    Because Karex Berhad made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now.  Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip.  As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.   In the last year Karex Berhad saw its revenue grow by 14%.   That's not a very high growth rate considering it doesn't make profits.   The modest growth is probably largely reflected in the share price, which is up 61%.  While not a huge gain tht seems pretty reasonable.  Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.       You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values). KLSE:KAREX Earnings and Revenue Growth December 5th 2022 We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies.  It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years.   You can see what analysts are predicting for Karex Berhad in this interactive graph of future profit estimates.  A Different Perspective We're pleased to report that Karex Berhad shareholders have received a total shareholder return of 61% over one year.    That certainly beats the loss of about 7% per year over the last half decade.  This makes us a little wary, but the business might have turned around its fortunes.        You might want to assess this data-rich visualization of its earnings, revenue and cash flow.   If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on MY exchanges.Valuation is complex, but we're helping make it simple.Find out whether Karex 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.


Should You Think About Buying Karex Berhad (KLSE:KAREX) Now?

Karex Berhad (KLSE:KAREX), is not the largest company out there, but it     led the KLSE gainers with a relatively large price hike in the past couple of weeks.    Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value?  Today I will analyse the most recent data on Karex Berhad’s outlook and valuation to see if the opportunity still exists.     View our latest analysis for Karex Berhad  What Is Karex Berhad Worth?  Great news for investors – Karex Berhad is still trading at a fairly cheap price.  According to my valuation, the intrinsic value for the stock is MYR1.22, but it is currently trading at RM0.82 on the share market, meaning that there is still an opportunity to buy now.   However, given that Karex Berhad’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.      What kind of growth will Karex Berhad generate? KLSE:KAREX Earnings and Revenue Growth January 13th 2023 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio.   Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.    With revenues expected to grow by a double-digit 11% over the next couple of years, the outlook is positive for Karex Berhad. If the level of expenses is able to be maintained, it looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.    What This Means For You Are you a shareholder? Since KAREX is currently undervalued, it may be a great time to  increase your holdings  in the stock. With  an optimistic  outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as  financial health  to consider, which could explain the current undervaluation. Are you a potential investor? If you’ve been keeping an eye on KAREX for a while, now might be the time  to enter the stock.  Its  prosperous  future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy KAREX. But before you make any investment decisions, consider other factors such as  the strength of its balance sheet,  in order to make a well-informed  investment decision.   It can be quite valuable to consider what analysts expect for Karex Berhad from their most recent forecasts.  So feel free to check out our free graph representing analyst forecasts.  If you are no longer interested in Karex Berhad, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Valuation is complex, but we're helping make it simple.Find out whether Karex 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.


At RM0.86, Is It Time To Put Nova Wellness Group Berhad (KLSE:NOVA) On Your Watch List?

While Nova Wellness Group Berhad (KLSE:NOVA) might not be the most widely known stock at the moment, it      saw significant share price movement during recent months on the KLSE, rising to highs of RM0.97 and falling to the lows of RM0.83. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Nova Wellness Group Berhad's current trading price of RM0.86 reflective of the actual value of the  small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Nova Wellness Group Berhad’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.  View our latest analysis for Nova Wellness Group Berhad  Is Nova Wellness Group Berhad Still Cheap?  Great news for investors – Nova Wellness Group Berhad is still trading at a fairly cheap price according to my price multiple model, where I compare the company's price-to-earnings ratio to the industry average.  In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Nova Wellness Group Berhad’s ratio of 17.27x is below its peer average of 26.18x, which indicates the stock is trading at a lower price compared to the Personal Products industry.   Although, there may be another chance to buy again in the future. This is because Nova Wellness Group Berhad’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.      What does the future of Nova Wellness Group Berhad look like? KLSE:NOVA Earnings and Revenue Growth August 30th 2022 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares.   Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.    With profit expected to grow by 48% over the next couple of years, the future seems bright for Nova Wellness Group Berhad. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.    What This Means For You Are you a shareholder? Since NOVA is currently trading below the industry PE ratio, it may be a great time to  increase your holdings  in the stock. With  an optimistic  profit outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as  capital structure  to consider, which could explain the current price multiple. Are you a potential investor? If you’ve been keeping an eye on NOVA for a while, now might be the time  to make a leap.  Its  buoyant  future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy NOVA. But before you make any investment decisions, consider other factors such as  the track record of its management team,  in order to make a well-informed  assessment.   So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing.   In terms of investment risks, we've identified 2 warning signs with Nova Wellness Group Berhad, and understanding these should be part of your investment process.    If you are no longer interested in Nova Wellness Group Berhad, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Valuation is complex, but we're helping make it simple.Find out whether Nova Wellness 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.


Nova Wellness Group Berhad Full Year 2022 Earnings: Misses Expectations

Nova Wellness Group Berhad (KLSE:NOVA) Full Year 2022 ResultsKey Financial Results Revenue: RM49.1m (up 21% from FY 2021). Net income: RM16.1m (up 11% from FY 2021). Profit margin: 33% (down from 36% in FY 2021).The decrease in margin was driven by higher expenses. EPS: RM0.051 (up from RM0.046 in FY 2021).  KLSE:NOVA Earnings and Revenue Growth October 21st 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Nova Wellness Group Berhad Revenues and Earnings Miss Expectations  Revenue missed analyst estimates by 2.5%.  Earnings per share (EPS) also missed analyst estimates by 12%.      Looking ahead, revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Personal Products industry in Asia.    Performance of the market in Malaysia.  The company's shares are down 2.7% from a week ago.   Risk Analysis Before we wrap up, we've discovered 2 warning signs for Nova Wellness Group Berhad that you should be aware of.Valuation is complex, but we're helping make it simple.Find out whether Nova Wellness 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.


Nova Wellness Group Berhad (KLSE:NOVA) Is Increasing Its Dividend To MYR0.0205

The board of Nova Wellness Group Berhad (KLSE:NOVA) has announced that the dividend on 16th of March will be increased to MYR0.0205, which will be 2.5% higher than last year's payment of MYR0.02 which covered the same period.       This makes the dividend yield 3.7%, which is above the industry average.    See our latest analysis for Nova Wellness Group Berhad  Nova Wellness Group Berhad's Payment Has Solid Earnings Coverage  If the payments aren't sustainable, a high yield for a few years won't matter that much.     Based on the last payment, Nova Wellness Group Berhad's earnings were much higher than the dividend, but it wasn't converting those earnings into cash flow.  In general, we consider cash flow to be more important than earnings, so we would be cautious about relying on the sustainability of this dividend.    The next year is set to see EPS grow by 64.9%.   If the dividend continues on this path, the payout ratio could be 8.9% by next year, which we think can be pretty sustainable going forward.     KLSE:NOVA Historic Dividend February 23rd 2023 Nova Wellness Group Berhad's Dividend Has Lacked Consistency  Even in its short history, we have seen the dividend cut.      Since 2019, the annual payment back then was MYR0.018, compared to the most recent full-year payment of MYR0.033.      This means that it has been growing its distributions at 16% per annum over that time.     It is great to see strong growth in the dividend payments, but cuts are concerning as it may indicate the payout policy is too ambitious.     Nova Wellness Group Berhad Could Grow Its Dividend  With a relatively unstable dividend, it's even more important to see if earnings per share is growing.      Nova Wellness Group Berhad has impressed us by growing EPS at 9.4% per year over the past five years.       The lack of cash flows does make us a bit cautious though, especially when it comes to the future of the dividend.     In Summary  Overall, this is probably not a great income stock, even though the dividend is being raised at the moment.       While Nova Wellness Group Berhad is earning enough to cover the payments, the cash flows are lacking.      We would probably look elsewhere for an income investment.   It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one.  Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company.   For example, we've identified 3 warning signs for Nova Wellness Group Berhad (1 shouldn't be ignored!) that you should be aware of before investing.   Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Valuation is complex, but we're helping make it simple.Find out whether Nova Wellness 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.


Will Weakness in Nova Wellness Group Berhad's (KLSE:NOVA) Stock Prove Temporary Given Strong Fundamentals?

It is hard to get excited after looking at Nova Wellness Group Berhad's (KLSE:NOVA) recent performance, when its stock has declined 17% over the past three months.   However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at.     Particularly, we will be paying attention to Nova Wellness Group Berhad's  ROE today.    ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders.  In simpler terms, it measures the profitability of a company in relation to shareholder's equity.  View our latest analysis for Nova Wellness Group 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 Nova Wellness Group Berhad is:13% = RM13m ÷ RM102m (Based on the trailing twelve months to March 2023). The 'return' is the income the business earned over the last year.  So, this means that for every MYR1 of its shareholder's investments, the company generates a profit of MYR0.13.   What Has ROE Got To Do With Earnings Growth?  We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings.  Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential.  Assuming 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.  Nova Wellness Group Berhad's Earnings Growth And 13% ROE   At first glance, Nova Wellness Group Berhad seems to have a decent ROE.   Especially when compared to the industry average of 8.4% the company's ROE looks pretty impressive.   Probably as a result of this, Nova Wellness Group Berhad was able to see a decent growth of 14% over the last five years.     We then compared Nova Wellness Group Berhad's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 4.8% in the same period.   KLSE:NOVA Past Earnings Growth May 25th 2023 Earnings growth is an important metric to consider when valuing a stock.   The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in.   This then helps them determine if the stock is placed for a bright or bleak future.    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 Nova Wellness Group Berhad is trading on a high P/E or a low P/E, relative to its industry.    Is Nova Wellness Group Berhad Using Its Retained Earnings Effectively?    Nova Wellness Group Berhad has a healthy combination of a moderate three-year median payout ratio of 35% (or a retention ratio of 65%) and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits.     Additionally, Nova Wellness Group Berhad has paid dividends over a period of five years which means that the company is pretty serious about sharing its profits with shareholders.      Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 34% of its profits over the next three years.   Regardless, the future ROE for Nova Wellness Group Berhad is predicted to rise to 18% despite there being not much change expected in its payout ratio.      Summary    On the whole, we feel that Nova Wellness Group Berhad's performance has been quite good.      Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings.       With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate.     Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Valuation is complex, but we're helping make it simple.Find out whether Nova Wellness Group Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


Be Wary Of NTPM Holdings Berhad (KLSE:NTPM) And Its Returns On Capital

When researching a stock for investment, what can tell us that the company is in decline?  Typically, we'll see the trend of both return on capital employed (ROCE) declining and this usually coincides with a decreasing amount of capital employed.  Ultimately this means that the company is earning less per dollar invested and on top of that, it's shrinking its base of capital employed.  And from a first read, things don't look too good at NTPM Holdings Berhad (KLSE:NTPM), so let's see why.   What Is Return On Capital Employed (ROCE)?  If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business.  The formula for this calculation on NTPM Holdings Berhad is:  Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.027 = RM16m ÷ (RM1.1b - RM496m) (Based on the trailing twelve months to January 2023). Thus, NTPM Holdings Berhad has an ROCE of 2.7%.  Ultimately, that's a low return and it under-performs the Household Products industry average of 8.4%.   View our latest analysis for NTPM Holdings Berhad KLSE:NTPM Return on Capital Employed April 25th 2023 Above you can see how the current ROCE for NTPM Holdings Berhad compares to its prior returns on capital, but there's only so much you can tell from the past.  If you'd like to see what analysts are forecasting going forward, you should check out our free report for NTPM Holdings Berhad.  SWOT Analysis for NTPM Holdings BerhadStrength Debt is well covered by . Balance sheet summary for NTPM. WeaknessInterest payments on debt are not well covered.Dividend is low compared to the top 25% of dividend payers in the Household Products market.Opportunity Expected to breakeven next year. Has sufficient cash runway for more than 3 years based on current free cash flows. Good value based on P/S ratio and estimated fair value. ThreatDebt is not well covered by operating cash flow. Paying a dividend but company is unprofitable. Is NTPM well equipped to handle threats?   What The Trend Of ROCE Can Tell Us  There is reason to be cautious about NTPM Holdings Berhad, given the returns are trending downwards.  To be more specific, the ROCE was 11%  five years ago, but since then it has dropped noticeably.  On top of that, it's worth noting that the amount of capital employed within the business has remained relatively steady.  Since returns are falling and the business has the same amount of assets employed, this can suggest it's a mature business that hasn't had much growth in the last  five years.   So because these trends aren't typically conducive to creating a multi-bagger, we wouldn't hold our breath on NTPM Holdings Berhad becoming one if things continue as they have.    While on the subject, we noticed that the ratio of current liabilities to total assets has risen to 47%, which has impacted the ROCE.  If current liabilities hadn't increased as much as they did, the ROCE could actually be even lower.   And with current liabilities at these levels, suppliers or short-term creditors are effectively funding a large part of the business, which can introduce some risks.       The Key Takeaway  In summary, it's unfortunate that NTPM Holdings Berhad is generating lower returns from the same amount of capital.      And, the stock has remained flat over the last  five years, so investors don't seem too impressed either.   With underlying trends that aren't great in these areas, we'd consider looking elsewhere.    NTPM Holdings Berhad does have some risks though, and we've spotted   2 warning signs for NTPM Holdings Berhad  that you might be interested in.     While NTPM 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 NTPM 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.


NTPM Holdings Berhad (KLSE:NTPM) Has Announced A Dividend Of MYR0.008

NTPM Holdings Berhad (KLSE:NTPM) has announced that it will pay a dividend of MYR0.008 per share on the 28th of October.      This makes the dividend yield 3.9%, which will augment investor returns quite nicely.    Check out our latest analysis for NTPM Holdings Berhad  NTPM Holdings Berhad's Earnings Easily Cover The Distributions  A big dividend yield for a few years doesn't mean much if it can't be sustained.     Prior to this announcement, the dividend made up 130% of earnings, and the company was generating negative free cash flows.  This high of a dividend payment could start to put pressure on the balance sheet in the future.    Looking forward, earnings per share is forecast to rise by 120.6% over the next year.   If the dividend continues along recent trends, we estimate the payout ratio will be 60%, which would make us comfortable with the sustainability of the dividend, despite the levels currently being quite high.     KLSE:NTPM Historic Dividend September 28th 2022 Dividend Volatility  The company's dividend history has been marked by instability, with at least one cut in the last 10 years.      The annual payment during the last 10 years was MYR0.029 in 2012, and the most recent fiscal year payment was MYR0.016.      The dividend has shrunk at around 5.8% a year during that period.    Declining dividends isn't generally what we look for as they can indicate that the company is running into some challenges.    Dividend Growth Potential Is Shaky  Dividends have been going in the wrong direction, so we definitely want to see a different trend in the earnings per share.      NTPM Holdings Berhad's EPS has fallen by approximately 23% per year during the past five years.  A sharp decline in earnings per share is not great from from a dividend perspective. Even conservative payout ratios can come under pressure if earnings fall far enough.   However, the next year is actually looking up, with earnings set to rise. We would just wait until it becomes a pattern before getting too excited.     We're Not Big Fans Of NTPM Holdings Berhad's Dividend  Overall, this isn't a great candidate as an income investment, even though the dividend was stable this year.      The company seems to be stretching itself a bit to make such big payments, but it doesn't appear they can be consistent over time.     The dividend doesn't inspire confidence that it will provide solid income in the future.   Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach.  Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company.   For example, we've identified 3 warning signs for NTPM Holdings Berhad (2 are significant!) that you should be aware of before investing.   Is NTPM Holdings Berhad not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.  Valuation is complex, but we're helping make it simple.Find out whether NTPM 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.


NTPM Holdings Berhad Third Quarter 2023 Earnings: RM0.007 loss per share (vs RM0.005 profit in 3Q 2022)

NTPM Holdings Berhad (KLSE:NTPM) Third Quarter 2023 ResultsKey Financial Results Revenue: RM215.7m (up 3.0% from 3Q 2022). Net loss: RM7.32m (down by 230% from RM5.62m profit in 3Q 2022). RM0.007 loss per share (down from RM0.005 profit in 3Q 2022).  KLSE:NTPM Earnings and Revenue Growth March 15th 2023 All figures shown in the chart above are for the trailing 12 month (TTM) period NTPM Holdings Berhad Earnings Insights  Looking ahead, revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Household Products industry in Asia.    Performance of the market in Malaysia.  The company's shares are down 5.7% from a week ago.   Risk Analysis You should learn about the   2 warning signs  we've spotted with NTPM Holdings Berhad. Valuation is complex, but we're helping make it simple.Find out whether NTPM 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.


NTPM Holdings Berhad's (KLSE:NTPM) CEO Compensation Is Looking A Bit Stretched At The Moment

Performance at NTPM Holdings Berhad (KLSE:NTPM) has been reasonably good and CEO Chong Lee has done a decent job of steering the company in the right direction.  As shareholders go into the upcoming AGM on 23 September 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum.   However, some shareholders may still be hesitant of being overly generous with CEO compensation.      View our latest analysis for NTPM Holdings Berhad  How Does Total Compensation For Chong Lee Compare With Other Companies In The Industry?  According to our data, NTPM Holdings Berhad has a market capitalization of RM483m, and paid its CEO total annual compensation worth RM1.9m over the year to April 2022.   That's a notable decrease of 32% on last year.    While we always look at total compensation first, our analysis shows that the salary component is less, at RM840k.   On comparing similar-sized companies in the industry with market capitalizations below RM907m, we found that the median total CEO compensation was RM579k.    This suggests that Chong Lee is paid more than the median for the industry.    Furthermore, Chong Lee directly owns RM57m worth of shares in the company, implying that they are deeply invested in the company's success.  Component20222021Proportion (2022)Salary RM840k RM974k 45% Other RM1.0m RM1.8m 55% Total CompensationRM1.9m RM2.7m100% Talking in terms of the industry, salary represented approximately 99% of total compensation out of all the companies we analyzed, while other remuneration made up 0.54785% of the pie.    NTPM Holdings Berhad sets aside a smaller share of compensation for salary, in comparison to the overall industry.    If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.  KLSE:NTPM CEO Compensation September 16th 2022 A Look at NTPM Holdings Berhad's Growth Numbers   Over the past three years, NTPM Holdings Berhad has seen its earnings per share (EPS) grow by 47% per year.     It achieved revenue growth of 2.0% over the last year.    Overall this is a positive result for shareholders, showing that the company has improved in recent years.   It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.     Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.  Has NTPM Holdings Berhad Been A Good Investment? NTPM Holdings Berhad has served shareholders reasonably well, with a total return of 11% over three years.  But they probably don't want to see the CEO paid more than is normal for companies around the same size.     In Summary...  Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM.     Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.       It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas.  We identified 2 warning signs for NTPM Holdings Berhad (1 is concerning!) that you should be aware of before investing here.   Important note: NTPM Holdings 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 NTPM 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.


Paos Holdings Berhad First Quarter 2023 Earnings: RM0.005 loss per share (vs RM0.006 loss in 1Q 2022)

Paos Holdings Berhad (KLSE:PAOS) First Quarter 2023 ResultsKey Financial Results Revenue: RM155.0m (up 115% from 1Q 2022). Net loss: RM877.0k (loss narrowed by 20% from 1Q 2022). RM0.005 loss per share (improved from RM0.006 loss in 1Q 2022).  KLSE:PAOS Earnings and Revenue History October 31st 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Paos Holdings Berhad's share price is broadly unchanged from a week ago.   Risk Analysis What about risks? Every company has them, and we've spotted   3 warning signs for Paos Holdings Berhad   (of which 1 is potentially serious!) you should know about.Valuation is complex, but we're helping make it simple.Find out whether Paos 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.


The Returns At Rubberex Corporation (M) Berhad (KLSE:RUBEREX) Aren't Growing

Did you know there are some financial metrics that can provide clues of a potential multi-bagger?  Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed.  Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine.    However, after investigating Rubberex Corporation (M) Berhad (KLSE:RUBEREX), we don't think it's current trends fit the mold of a multi-bagger.     Understanding Return On Capital Employed (ROCE)  If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business.  Analysts use this formula to calculate it for Rubberex Corporation (M) Berhad:  Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.063 = RM39m ÷ (RM643m - RM27m) (Based on the trailing twelve months to June 2022). Therefore, Rubberex Corporation (M) Berhad has an ROCE of 6.3%. In absolute terms, that's a low return and it also under-performs the Household Products industry average of 9.2%.   See our latest analysis for Rubberex Corporation (M) Berhad KLSE:RUBEREX Return on Capital Employed August 30th 2022 Historical performance is a great place to start when researching a stock so above you can see the gauge for Rubberex Corporation (M) Berhad's ROCE against it's prior returns.  If you're interested in investigating Rubberex Corporation (M) Berhad's past further, check out this free graph of past earnings, revenue and cash flow.  What The Trend Of ROCE Can Tell Us  In terms of Rubberex Corporation (M) Berhad's historical ROCE trend, it doesn't exactly demand attention.   Over the past  five years, ROCE has remained relatively flat at around 6.3% and the business has deployed 93% more capital into its operations.   This poor ROCE doesn't inspire confidence right now, and with the increase in capital employed, it's evident that the business isn't deploying the funds into high return investments.     On a side note, Rubberex Corporation (M) Berhad has done well to reduce current liabilities to 4.2% of total assets over the last  five years.   Effectively suppliers now fund less of the business, which can lower some elements of risk.      The Bottom Line  In summary, Rubberex Corporation (M) Berhad has simply been reinvesting capital and generating the same low rate of return as before.        Since the stock has gained an impressive 78% over the last  five years, investors must think there's better things to come.   However, unless these underlying trends turn more positive, we wouldn't get our hopes up too high.     One more thing, we've spotted   2 warning signs  facing Rubberex Corporation (M) Berhad that you might find interesting.    For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Valuation is complex, but we're helping make it simple.Find out whether Hextar Healthcare Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


Are Sunzen Biotech Berhad's (KLSE:SUNZEN) Mixed Financials The Reason For Its Gloomy Performance on The Stock Market?

It is hard to get excited after looking at Sunzen Biotech Berhad's (KLSE:SUNZEN) recent performance, when its stock has declined 22% over the past three months.   It seems that the market might have completely ignored the positive aspects of the company's fundamentals and decided to weigh-in more on the negative aspects.  Fundamentals usually dictate market outcomes so it makes sense to study the company's financials.     In this article, we decided to focus on Sunzen Biotech Berhad's  ROE.    ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders.  In simpler terms, it measures the profitability of a company in relation to shareholder's equity.  View our latest analysis for Sunzen Biotech Berhad  How Is ROE Calculated?  The formula for return on equity is:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Sunzen Biotech Berhad is:2.9% = RM3.7m ÷ RM128m (Based on the trailing twelve months to June 2022). The 'return' is the amount earned after tax over the last twelve months.  So, this means that for every MYR1 of its shareholder's investments, the company generates a profit of MYR0.03.   What Has ROE Got To Do With Earnings Growth?  We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings.  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.  Sunzen Biotech Berhad's Earnings Growth And 2.9% ROE   It is hard to argue that Sunzen Biotech Berhad's ROE is much good in and of itself.   Even when compared to the industry average of 9.9%, the ROE figure is pretty disappointing.   Therefore, it might not be wrong to say that the five year net income decline of 22% seen by Sunzen Biotech Berhad was possibly a result of it having a lower ROE.  We reckon that there could also be other factors at play here.  Such as - low earnings retention or poor allocation of capital.     Next, when we compared with the industry, which has shrunk its earnings at a rate of 4.5% in the same period, we still found Sunzen Biotech Berhad's performance to be quite bleak, because the company has been shrinking its earnings faster than the industry.   KLSE:SUNZEN Past Earnings Growth September 9th 2022 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).  Doing so will help them establish if the stock's future looks promising or ominous.    Is Sunzen Biotech Berhad fairly valued compared to other companies? These 3 valuation measures might help you decide.    Is Sunzen Biotech Berhad Using Its Retained Earnings Effectively?    Sunzen Biotech 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.  It looks like there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.     Summary    Overall, we have mixed feelings about Sunzen Biotech Berhad.      While the company does have a high rate of reinvestment, the low ROE means that all that reinvestment is not reaping any benefit to its investors, and moreover, its having a negative impact on the earnings growth.       Wrapping up, we would proceed with caution with this company and one way of doing that would be to look at the risk profile of the business.   You can see the 3 risks we have identified for Sunzen Biotech 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 Sunzen Biotech 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.


Sunzen Biotech Berhad Full Year 2022 Earnings: EPS: RM0.005 (vs RM0.001 in FY 2021)

Sunzen Biotech Berhad (KLSE:SUNZEN) Full Year 2022 ResultsKey Financial Results Revenue: RM97.1m (up 7.3% from FY 2021). Net income: RM3.64m (up 435% from FY 2021). Profit margin: 3.7% (up from 0.8% in FY 2021). The increase in margin was driven by higher revenue. EPS: RM0.005 (up from RM0.001 in FY 2021).  KLSE:SUNZEN Earnings and Revenue History February 26th 2023 All figures shown in the chart above are for the trailing 12 month (TTM) period Sunzen Biotech Berhad shares are down 2.3% from a week ago.   Risk Analysis It is worth noting though that we have found 2 warning signs for Sunzen Biotech Berhad (1 is a bit concerning!) that you need to take into consideration. Valuation is complex, but we're helping make it simple.Find out whether Sunzen Biotech 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.