Digistar Corporation Berhad's (KLSE:DIGISTA) Returns On Capital Tell Us There Is Reason To Feel Uneasy

To avoid investing in a business that's in decline, there's a few financial metrics that can provide early indications of aging.  When we see a declining return on capital employed (ROCE) in conjunction with a declining base of capital employed, that's often how a mature business shows signs of aging.  This reveals that the company isn't compounding shareholder wealth because returns are falling and its net asset base is shrinking.  So after glancing at the trends within Digistar Corporation Berhad (KLSE:DIGISTA), we weren't too hopeful.   What Is Return On Capital Employed (ROCE)?  For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business.  Analysts use this formula to calculate it for Digistar Corporation Berhad:  Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.052 = RM14m ÷ (RM333m - RM54m) (Based on the trailing twelve months to March 2023). So, Digistar Corporation Berhad has an ROCE of 5.2%.  Ultimately, that's a low return and it under-performs the IT industry average of 19%.   View our latest analysis for Digistar Corporation Berhad KLSE:DIGISTA Return on Capital Employed June 30th 2023 While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above.  If you're interested in investigating Digistar Corporation Berhad's past further, check out this free graph of past earnings, revenue and cash flow.   How Are Returns Trending?  There is reason to be cautious about Digistar Corporation Berhad, given the returns are trending downwards.  To be more specific, the ROCE was 7.5%  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.  Companies that exhibit these attributes tend to not be shrinking, but they can be mature and facing pressure on their margins from competition.  So because these trends aren't typically conducive to creating a multi-bagger, we wouldn't hold our breath on Digistar Corporation Berhad becoming one if things continue as they have.   The Bottom Line On Digistar Corporation Berhad's ROCE  In summary, it's unfortunate that Digistar Corporation Berhad is generating lower returns from the same amount of capital.      It should come as no surprise then that the stock has fallen 67% over the last  five years, so it looks like investors are recognizing these changes.    With underlying trends that aren't great in these areas, we'd consider looking elsewhere.    Since virtually every company faces some risks, it's worth knowing what they are, and we've spotted   3 warning signs for Digistar Corporation Berhad   (of which 1 shouldn't be ignored!) that you should know about.     While Digistar Corporation 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 Digistar Corporation Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


Here's Why Digistar Corporation Berhad (KLSE:DIGISTA) Is Weighed Down By Its Debt Load

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.'  So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company.  As with many other companies Digistar Corporation Berhad (KLSE:DIGISTA) makes use of debt.  But the real question is whether this debt is making the company risky.  What Risk Does Debt Bring?  Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow.   Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers.  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.  Of course, debt can be an important tool in businesses, particularly capital heavy businesses.  When we examine debt levels, we first consider both cash and debt levels, together.   View our latest analysis for Digistar Corporation Berhad  What Is Digistar Corporation Berhad's Debt?  The image below, which you can click on for greater detail, shows that Digistar Corporation Berhad had debt of RM233.6m at the end of December 2022, a reduction from RM249.9m over a year.    On the flip side, it has RM59.1m in cash leading to net debt of about RM174.5m.  KLSE:DIGISTA Debt to Equity History April 25th 2023 How Healthy Is Digistar Corporation Berhad's Balance Sheet?  Zooming in on the latest balance sheet data, we can see that Digistar Corporation Berhad had liabilities of RM53.2m due within 12 months and liabilities of RM214.9m due beyond that.    On the other hand, it had cash of RM59.1m and RM25.8m worth of receivables due within a year.   So it has liabilities totalling RM183.3m more than its cash and near-term receivables, combined.   The deficiency here weighs heavily on the RM31.6m company itself, as if a child were struggling under the weight of an enormous back-pack full of books, his sports gear, and a trumpet.   So we definitely think shareholders need to watch this one closely.  After all, Digistar Corporation Berhad would likely require a major re-capitalisation if it had to pay its creditors today.    In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover).  Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.   Digistar Corporation Berhad shareholders face the double whammy of a high net debt to EBITDA ratio (10.2), and fairly weak interest coverage, since EBIT is just 0.96 times the interest expense.  The debt burden here is substantial.        Another concern for investors might be that Digistar Corporation Berhad's EBIT fell 14% in the last year.   If things keep going like that, handling the debt will about as easy as bundling an angry house cat into its travel box.      When analysing debt levels, the balance sheet is the obvious place to start.  But you can't view debt in total isolation; since Digistar Corporation Berhad will need earnings to service that debt.  So if you're keen to discover more about its earnings, it might be worth checking out this graph of its long term earnings trend.  Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash.   So the logical step is to look at the proportion of that EBIT that is matched by actual free cash flow.    Over the last two years, Digistar Corporation Berhad actually produced more free cash flow than EBIT.  That sort of strong cash generation warms our hearts like a puppy in a bumblebee suit.    Our View On the face of it, Digistar Corporation Berhad's interest cover left us tentative about the stock, and its level of total liabilities was no more enticing than the one empty restaurant on the busiest night of the year.    But on the bright side, its conversion of EBIT to free cash flow is a good sign, and makes us more optimistic.      We're quite clear that we consider Digistar Corporation Berhad to be really rather risky, as a result of its balance sheet health.  So we're almost as wary of this stock as a hungry kitten is about falling into its owner's fish pond: once bitten, twice shy, as they say.    The balance sheet is clearly the area to focus on when you are analysing debt.  However, not all investment risk resides within the balance sheet - far from it.   To that end, you should learn about the   3 warning signs  we've spotted with Digistar Corporation Berhad (including 2 which don't sit too well with us) .     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 Digistar Corporation Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


Dagang NeXchange Berhad Full Year 2022 Earnings: Beats Expectations

Dagang NeXchange Berhad (KLSE:DNEX) Full Year 2022 ResultsKey Financial Results Revenue: RM1.44b (up by RM1.22b from FY 2021). Net income: RM549.6m (up by RM469.6m from FY 2021). Profit margin: 38% (up from 36% in FY 2021). EPS: RM0.18 (up from RM0.042 in FY 2021).  KLSE:DNEX Earnings and Revenue Growth November 2nd 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Dagang NeXchange Berhad Revenues and Earnings Beat Expectations  Revenue exceeded analyst estimates by 8.7%.  Earnings per share (EPS) also surpassed analyst estimates by 197%.      Looking ahead, revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 7.8% growth forecast for the IT industry in Malaysia.    Performance of the Malaysian IT industry.  The company's shares are up 1.3% from a week ago.   Risk Analysis It's necessary to consider the ever-present spectre of investment risk.   We've identified 3 warning signs  with Dagang NeXchange Berhad (at least 1 which is a bit unpleasant), and understanding them should be part of your investment process.Valuation is complex, but we're helping make it simple.Find out whether Dagang NeXchange 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.


Dagang NeXchange Berhad's (KLSE:DNEX) Stock Has Been Sliding But Fundamentals Look Strong: Is The Market Wrong?

With its stock down 43% over the past three months, it is easy to disregard Dagang NeXchange Berhad (KLSE:DNEX).   But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health.     Particularly, we will be paying attention to Dagang NeXchange Berhad's  ROE today.    Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money.  In simpler terms, it measures the profitability of a company in relation to shareholder's equity.   View our latest analysis for Dagang NeXchange Berhad   How Do You Calculate Return On Equity?  Return on equity can be calculated by using the formula:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Dagang NeXchange Berhad is:30% = RM707m ÷ RM2.3b (Based on the trailing twelve months to June 2022). The 'return' is the profit over the last twelve months.  Another way to think of that is that for every MYR1 worth of equity, the company was able to earn MYR0.30 in profit.   What Has ROE Got To Do With Earnings Growth?  Thus far, we have learned that ROE measures how efficiently a company is generating its profits.  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.  Dagang NeXchange Berhad's Earnings Growth And 30% ROE  First thing first, we like that Dagang NeXchange Berhad has an impressive ROE.   Additionally, the company's ROE is higher compared to the industry average of 9.5% which is quite remarkable.   So, the substantial 62% net income growth seen by Dagang NeXchange Berhad over the past five years isn't overly surprising.     Next, on comparing with the industry net income growth, we found that Dagang NeXchange Berhad's growth is quite high when compared to the industry average growth of 7.4% in the same period, which is great to see.   KLSE:DNEX Past Earnings Growth November 18th 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).   This then helps them determine if the stock is placed for a bright or bleak future.    Is Dagang NeXchange Berhad fairly valued compared to other companies? These 3 valuation measures might help you decide.    Is Dagang NeXchange Berhad Using Its Retained Earnings Effectively?    While the company did pay out a portion of its dividend in the past, it currently doesn't pay a dividend. This is likely what's driving the high earnings growth number discussed above.      Conclusion    On the whole, we feel that Dagang NeXchange Berhad's performance has been quite good.      In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings.       With that said, on studying the latest analyst forecasts, we found that while the company has seen growth in its past earnings, analysts expect its future earnings to shrink.     To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Valuation is complex, but we're helping make it simple.Find out whether Dagang NeXchange 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.


Dagang NeXchange Berhad's (KLSE:DNEX) three-year total shareholder returns outpace the underlying earnings growth

The last three months have been tough on Dagang NeXchange Berhad (KLSE:DNEX) shareholders, who have seen the share price decline a rather worrying 36%.    But that doesn't change the fact that the returns over the last three years have been pleasing.  In fact, the company's share price bested the return of its market index in that time, posting a gain of 100%.      In light of the stock dropping 10% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive three-year return.   Check out our latest analysis for Dagang NeXchange Berhad  SWOT Analysis for Dagang NeXchange BerhadStrength Debt is not viewed as a risk. Balance sheet summary for DNEX. Weakness Earnings declined over the past year.  What are analysts forecasting for DNEX? Opportunity Annual revenue is forecast to grow faster than the Malaysian market. Good value based on P/E ratio compared to estimated Fair P/E ratio. ThreatNo apparent threats visible for DNEX.  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 way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).   Dagang NeXchange Berhad was able to grow its EPS at 74% per year over three years, sending the share price higher.   This EPS growth is higher than the 26% average annual increase in the share price.  So it seems investors have become more cautious about the company, over time.   We'd venture the lowish P/E ratio of 4.31 also reflects the negative sentiment around the stock.    The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). KLSE:DNEX Earnings Per Share Growth May 29th 2023 We know that Dagang NeXchange Berhad has improved its bottom line over the last three years, but what does the future have in store?  It might be well worthwhile taking a look at our free report on how its financial position has changed over time.  A Different Perspective We regret to report that Dagang NeXchange Berhad shareholders are down 61% for the year. Unfortunately, that's worse than the broader market decline of 2.0%.  Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments.     On the bright side, long term shareholders have made money, with a gain of 0.2% per year over half a decade.  If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering.        It's always interesting to track share price performance over the longer term. But to understand Dagang NeXchange Berhad better, we need to consider many other factors.   For example, we've discovered 1 warning sign for Dagang NeXchange Berhad that you should be aware of before investing here.    Of course Dagang NeXchange Berhad may not be the best stock to buy. So you may wish to see this free collection of growth stocks. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges.Valuation is complex, but we're helping make it simple.Find out whether Dagang NeXchange Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


Does Dagang NeXchange Berhad (KLSE:DNEX) Have A Healthy Balance Sheet?

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.'  When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin.  As with many other companies Dagang NeXchange Berhad (KLSE:DNEX) makes use of debt.  But the more important question is: how much risk is that debt creating?  When Is Debt A Problem?  Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow.  In the worst case scenario, a company can go bankrupt if it cannot pay its creditors.  While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price.  Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage.  The first step when considering a company's debt levels is to consider its cash and debt together.   View our latest analysis for Dagang NeXchange Berhad  How Much Debt Does Dagang NeXchange Berhad Carry?  You can click the graphic below for the historical numbers, but it shows that Dagang NeXchange Berhad had RM295.2m of debt in December 2022, down from RM319.4m, one year before.    However, it does have RM634.5m in cash offsetting this, leading to net cash of RM339.3m.  KLSE:DNEX Debt to Equity History May 12th 2023 How Strong Is Dagang NeXchange Berhad's Balance Sheet?  We can see from the most recent balance sheet that Dagang NeXchange Berhad had liabilities of RM532.0m falling due within a year, and liabilities of RM1.71b due beyond that.   Offsetting these obligations, it had cash of RM634.5m as well as receivables valued at RM303.2m due within 12 months.   So its liabilities total RM1.30b more than the combination of its cash and short-term receivables.   This is a mountain of leverage  relative to its  market capitalization of RM1.45b.  This suggests shareholders would be heavily diluted if the company needed to shore up its balance sheet in a hurry.    While it does have liabilities worth noting, Dagang NeXchange Berhad also has more cash than debt, so we're pretty confident it can manage its debt safely.    Better yet, Dagang NeXchange Berhad grew its EBIT by 103% last year, which is an impressive improvement.  That boost will make it even easier to pay down debt going forward.      There's no doubt that we learn most about debt from the balance sheet.  But ultimately the future profitability of the business will decide if Dagang NeXchange Berhad can strengthen its balance sheet over time.  So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.   Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it.   While Dagang NeXchange Berhad has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance.    Over the last two years, Dagang NeXchange Berhad reported free cash flow worth 15% of its EBIT, which is really quite low.  For us, cash conversion that low sparks a little paranoia about is ability to extinguish debt.    Summing Up Although Dagang NeXchange Berhad's balance sheet isn't particularly strong, due to the total liabilities, it is clearly positive to see that it has net cash of RM339.3m.     And it impressed us with its EBIT growth of 103% over the last year.     So we are not troubled with Dagang NeXchange Berhad's debt use.    When analysing debt levels, the balance sheet is the obvious place to start.  However, not all investment risk resides within the balance sheet - far from it.   For instance, we've identified   1 warning sign for Dagang NeXchange Berhad  that you should be aware of.     When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now. Valuation is complex, but we're helping make it simple.Find out whether Dagang NeXchange 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.


If EPS Growth Is Important To You, Dagang NeXchange Berhad (KLSE:DNEX) Presents An Opportunity

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit.  Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson.  Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.  If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Dagang NeXchange Berhad (KLSE:DNEX). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing.  View our latest analysis for Dagang NeXchange Berhad   How Fast Is Dagang NeXchange Berhad Growing Its Earnings Per Share?  Dagang NeXchange Berhad has undergone a massive growth in earnings per share over the last three years. So much so that this three year growth rate wouldn't be a fair assessment of the company's future.  So it would be better to isolate the growth rate over the last year for our analysis.    Dagang NeXchange Berhad boosted its trailing twelve month EPS from RM0.076 to RM0.094, in the last year.  That's a 25% gain; respectable growth in the broader scheme of things.   One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing.    The good news is that Dagang NeXchange Berhad is growing revenues, and EBIT margins improved by 16.4 percentage points to 27%, over the last year.  That's great to see, on both counts.    In the chart below, you can see how the company has grown earnings and revenue, over time.  For finer detail, click on the image. KLSE:DNEX Earnings and Revenue History January 12th 2023  Fortunately, we've got access to analyst forecasts of Dagang NeXchange Berhad's future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting. Are Dagang NeXchange Berhad Insiders Aligned With All Shareholders?  It should give investors a sense of security owning shares in a company if insiders also own shares, creating a close alignment their interests.  Dagang NeXchange Berhad followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group.     Holding RM287m worth of stock in the company is no laughing matter and insiders will be committed in delivering the best outcomes for shareholders.   Amounting to 16% of the outstanding shares, indicating that insiders are also significantly impacted by the decisions they make on the behalf of the business.     Should You Add Dagang NeXchange Berhad To Your Watchlist?  One positive for Dagang NeXchange Berhad is that it is growing EPS. That's nice to see.   For those who are looking for a little more than this, the high level of insider ownership enhances our enthusiasm for this growth.   These two factors are a huge highlight for the company which should be a strong contender your watchlists.     What about risks? Every company has them, and we've spotted   2 warning signs for Dagang NeXchange Berhad   you should know about.    Although Dagang NeXchange Berhad certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see insider buying, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.  Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.Valuation is complex, but we're helping make it simple.Find out whether Dagang NeXchange Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


individual investors who own 50% along with institutions invested in Dagang NeXchange Berhad (KLSE:DNEX) saw increase in their holdings value last week

A look at the shareholders of Dagang NeXchange Berhad (KLSE:DNEX) can tell us which group is most powerful.  And the group that holds the biggest piece of the pie are individual investors with 50% ownership.   In other words, the group stands to gain the most (or lose the most) from their investment into the company.  Following a 11% increase in the stock price last week, individual investors profited the most, but institutions who own 16% stock also stood to gain from the increase.      Let's take a closer look to see what the different types of shareholders can tell us about Dagang NeXchange Berhad.  See our latest analysis for Dagang NeXchange Berhad KLSE:DNEX Ownership Breakdown January 27th 2023 What Does The Institutional Ownership Tell Us About Dagang NeXchange Berhad? Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.   Dagang NeXchange Berhad already has institutions on the share registry. Indeed, they own a respectable stake in the company.  This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does.  It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Dagang NeXchange Berhad, (below). Of course, keep in mind that there are other factors to consider, too. KLSE:DNEX Earnings and Revenue Growth January 27th 2023  Hedge funds don't have many shares in Dagang NeXchange Berhad.      The company's largest shareholder is Arcadia Acres Sdn. Bhd., with ownership of 11%.       Meanwhile, the second and third largest shareholders, hold 3.8% and 3.2%, of the shares outstanding, respectively.     On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.   While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing.   Quite a few analysts cover the stock, so you could look into forecast growth quite easily.  Insider Ownership Of Dagang NeXchange Berhad While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.  Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.  Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.   It seems insiders own a significant proportion of Dagang NeXchange Berhad.   It has a market capitalization of just RM2.1b, and insiders have RM331m worth of shares in their own names.  It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.   General Public Ownership The general public-- including retail investors -- own 50% stake in the company, and hence can't easily be ignored.   This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.  Private Company Ownership It seems that Private Companies own 15%, of the Dagang NeXchange Berhad stock.   It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.   Public Company Ownership Public companies currently own 3.8% of Dagang NeXchange Berhad stock.   This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.   Next Steps: It's always worth thinking about the different groups who own shares in a company. But to understand Dagang NeXchange Berhad better, we need to consider many other factors.    Consider for instance, the ever-present spectre of investment risk.   We've identified 2 warning signs  with Dagang NeXchange Berhad , and understanding them should be part of your investment process.     If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.  NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.Valuation is complex, but we're helping make it simple.Find out whether Dagang NeXchange 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.


There Are Reasons To Feel Uneasy About Dagang NeXchange Berhad's (KLSE:DNEX) Returns On Capital

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for?  Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed.   Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return.    Although, when we looked at Dagang NeXchange Berhad (KLSE:DNEX), it didn't seem to tick all of these boxes.     Return On Capital Employed (ROCE): What Is It?  If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business.  To calculate this metric for Dagang NeXchange Berhad, this is the formula:  Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.012 = RM24m ÷ (RM2.2b - RM230m) (Based on the trailing twelve months to June 2021). So, Dagang NeXchange Berhad has an ROCE of 1.2%.  In absolute terms, that's a low return and it also under-performs the IT industry average of 11%.   Check out our latest analysis for Dagang NeXchange Berhad KLSE:DNEX Return on Capital Employed August 4th 2022 Above you can see how the current ROCE for Dagang NeXchange 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 Dagang NeXchange Berhad.  What Does the ROCE Trend For Dagang NeXchange Berhad Tell Us?  On the surface, the trend of ROCE at Dagang NeXchange Berhad doesn't inspire confidence.   Around  five years ago the returns on capital were 13%, but since then they've fallen to 1.2%.    Given the business is employing more capital while revenue has slipped, this is a bit concerning.   This could mean that the business is losing its competitive advantage or market share, because while more money is being put into ventures, it's actually producing a lower return - "less bang for their buck" per se.     On a side note, Dagang NeXchange Berhad has done well to pay down its current liabilities to 11% of total assets.   That could partly explain why the ROCE has dropped.   What's more, this can reduce some aspects of risk to the business because now the company's suppliers or short-term creditors are funding less of its operations.  Since the business is basically funding more of its operations with it's own money, you could argue this has made the business less efficient at generating ROCE.     The Key Takeaway  We're a bit apprehensive about Dagang NeXchange Berhad because despite more capital being deployed in the business, returns on that capital and sales have both fallen.       The market must be rosy on the stock's future because even though the underlying trends aren't too encouraging, the stock has soared 102%.   In any case, the current underlying trends don't bode well for long term performance so unless they reverse, we'd start looking elsewhere.    On a final note, we've found   3 warning signs for Dagang NeXchange Berhad  that we think you should be aware of.    While Dagang NeXchange Berhad may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. Valuation is complex, but we're helping make it simple.Find out whether Dagang NeXchange 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.


When Should You Buy Dagang NeXchange Berhad (KLSE:DNEX)?

While Dagang NeXchange Berhad (KLSE:DNEX) might not be the most widely known stock at the moment, it     led the KLSE gainers with a relatively large price hike in the past couple of weeks.    Less-covered, small caps sees 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?  Let’s take a look at Dagang NeXchange Berhad’s outlook and value based on the most recent financial data to see if the opportunity still exists.     See our latest analysis for Dagang NeXchange Berhad  Is Dagang NeXchange Berhad Still Cheap?  Good news, investors! Dagang NeXchange Berhad is still a bargain right now according to my price multiple model, which compares 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 Dagang NeXchange Berhad’s ratio of 6.85x is below its peer average of 21.52x, which indicates the stock is trading at a lower price compared to the IT industry.   However, given that Dagang NeXchange 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 does the future of Dagang NeXchange Berhad look like? KLSE:DNEX Earnings and Revenue Growth March 28th 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.    Though in the case of Dagang NeXchange Berhad, it is expected to deliver a negative earnings growth of -14%, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.    What This Means For You Are you a shareholder? Although DNEX is currently trading below the industry PE ratio,  the negative profit outlook does bring on some uncertainty, which equates to higher risk.  Consider  whether you want to increase your portfolio exposure to DNEX, or whether diversifying into another stock may be a better move for your total risk and return. Are you a potential investor? If you’ve been  keeping an eye on DNEX for a while,  but hesitant on making the leap, I recommend you  research further into the stock.  Given its current price multiple, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.   So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing.   In terms of investment risks, we've identified 1 warning sign with Dagang NeXchange Berhad, and understanding it should be part of your investment process.    If you are no longer interested in Dagang NeXchange 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 Dagang NeXchange 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.


DynaFront Holdings Berhad's (KLSE:DYNAFNT) Stock Is Going Strong: Have Financials A Role To Play?

DynaFront Holdings Berhad's (KLSE:DYNAFNT) stock is up by a considerable 11% over the past week.   We wonder if and what role the company's financials play in that price change as a company's long-term fundamentals usually dictate market outcomes.      In this article, we decided to focus on DynaFront Holdings 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 short, ROE shows the profit each dollar generates with respect to its shareholder investments.  See our latest analysis for DynaFront Holdings Berhad  How To Calculate Return On Equity?  The formula for ROE is:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for DynaFront Holdings Berhad is:9.2% = RM1.8m ÷ RM20m (Based on the trailing twelve months to December 2022). The 'return' refers to a company's earnings over the last year.  Another way to think of that is that for every MYR1 worth of equity, the company was able to earn MYR0.09 in profit.   What Is The Relationship Between ROE And Earnings Growth?  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 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.  DynaFront Holdings Berhad's Earnings Growth And 9.2% ROE  On the face of it, DynaFront Holdings Berhad's ROE is not much to talk about.   However, given that the company's ROE is similar to the average industry ROE of 10%, we may spare it some thought.   Particularly, the exceptional 21% net income growth seen by DynaFront Holdings Berhad over the past five years is pretty remarkable.  Taking into consideration that the ROE is not particularly high, we reckon that there could also be other factors at play which could be influencing the company's growth.  For instance, the company has a low payout ratio or is being managed efficiently.     As a next step, we compared DynaFront Holdings Berhad's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 17%.   KLSE:DYNAFNT Past Earnings Growth April 5th 2023 The basis for attaching value to a company is, to a great extent, tied to its earnings growth.  It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline).  By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await.    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 DynaFront Holdings Berhad is trading on a high P/E or a low P/E, relative to its industry.    Is DynaFront Holdings Berhad Using Its Retained Earnings Effectively?    The high three-year median payout ratio of 73% (implying that it keeps only 27% of profits) for DynaFront Holdings Berhad suggests that the company's growth wasn't really hampered despite it returning most of the earnings to its shareholders.      Along with seeing a growth in earnings, DynaFront Holdings Berhad only recently started paying dividends. Its quite possible that the company was looking to impress its shareholders.     Conclusion    On the whole, we do feel that DynaFront Holdings Berhad has some positive attributes.      Namely, its high earnings growth. We do however feel that the earnings growth number could have been even higher, had the company been reinvesting more of its earnings and paid out less dividends.      Until now, we have only just grazed the surface of the company's past performance by looking at the company's fundamentals.   To gain further insights into DynaFront Holdings Berhad's past profit growth, check out this visualization of past earnings, revenue and cash flows. Valuation is complex, but we're helping make it simple.Find out whether DynaFront Holdings Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


Investors Don't See Light At End Of EA Holdings Berhad's (KLSE:EAH) Tunnel And Push Stock Down 33%

EA Holdings Berhad (KLSE:EAH) shares have had a horrible month, losing 33% after a relatively good period beforehand.    To make matters worse, the recent drop has wiped out a year's worth of gains with the share price now back where it started a year ago.    Even after such a large drop in price, given about half the companies in Malaysia have price-to-earnings ratios (or "P/E's") above 14x, you may still consider EA Holdings Berhad as a highly attractive investment with its -3.3x P/E ratio.  Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly reduced P/E.     For example, consider that EA Holdings Berhad's financial performance has been poor lately as its earnings have been in decline.   It might be that many expect the disappointing earnings performance to continue or accelerate, which has repressed the P/E.  If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.     Check out our latest analysis for EA Holdings Berhad KLSE:EAH Price to Earnings Ratio vs Industry June 8th 2023 Want the full picture on earnings, revenue and cash flow for the company? Then our free report on EA Holdings Berhad will help you shine a light on its historical performance.   What Are Growth Metrics Telling Us About The Low P/E?   The only time you'd be truly comfortable seeing a P/E as depressed as EA Holdings Berhad's is when the company's growth is on track to lag the market decidedly.   If we review the last year of earnings, dishearteningly the company's profits fell to the tune of 25%.   This has erased any of its gains during the last three years, with practically no change in EPS being achieved in total.  Therefore, it's fair to say that earnings growth has been inconsistent recently for the company.     Comparing that to the market, which is predicted to deliver 11% growth in the next 12 months, the company's momentum is weaker based on recent medium-term annualised earnings results.  With this information, we can see why EA Holdings Berhad is trading at a P/E lower than the market.  It seems most investors are expecting to see the recent limited growth rates continue into the future and are only willing to pay a reduced amount for the stock.    The Bottom Line On EA Holdings Berhad's P/E  Having almost fallen off a cliff, EA Holdings Berhad's share price has pulled its P/E way down as well.      Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.  As we suspected, our examination of EA Holdings Berhad revealed its three-year earnings trends are contributing to its low P/E, given they look worse than current market expectations.  At this stage investors feel the potential for an improvement in earnings isn't great enough to justify a higher P/E ratio.  Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.      Having said that, be aware EA Holdings Berhad is showing 2 warning signs in our investment analysis, and 1 of those is a bit unpleasant.   Of course, you might also be able to find a better stock than EA Holdings Berhad. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly. Valuation is complex, but we're helping make it simple.Find out whether EA Holdings Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


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

To find a multi-bagger stock, what are the underlying trends we should look for in a business?  One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed.  This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns.    So on that note, EA Holdings Berhad (KLSE:EAH) looks quite promising in regards to its trends of return on capital.     Return On Capital Employed (ROCE): What Is It?  For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business.  The formula for this calculation on EA Holdings Berhad is:  Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.0094 = RM1.3m ÷ (RM145m - RM9.1m) (Based on the trailing twelve months to June 2022). Therefore, EA Holdings Berhad has an ROCE of 0.9%. In absolute terms, that's a low return and it also under-performs the IT industry average of 12%.    View our latest analysis for EA Holdings Berhad  KLSE:EAH Return on Capital Employed December 24th 2022 While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above.  If you'd like to look at how EA Holdings Berhad has performed in the past in other metrics, you can view this free graph of past earnings, revenue and cash flow.  What Does the ROCE Trend For EA Holdings Berhad Tell Us?  EA Holdings Berhad has broken into the black (profitability) and we're sure it's a sight for sore eyes.  The company now earns 0.9% on its capital, because  five years ago it was incurring losses.  While returns have increased, the amount of capital employed by EA Holdings Berhad has remained flat over the period.  That being said, while an increase in efficiency is no doubt appealing, it'd be helpful to know if the company does have any investment plans going forward.  After all, a company can only become a long term multi-bagger if it continually reinvests in itself at high rates of return.    The Bottom Line On EA Holdings Berhad's ROCE  To bring it all together, EA Holdings Berhad has done well to increase the returns it's generating from its capital employed.       And since the stock has fallen 63% over the last  five years, there might be an opportunity here.   That being the case, research into the company's current valuation metrics and future prospects seems fitting.     EA Holdings Berhad does come with some risks though, we found 4 warning signs in our investment analysis, and 2 of those are a bit concerning...     While EA 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 EA 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.


Ecobuilt Holdings Berhad First Quarter 2023 Earnings: RM0.006 loss per share (vs RM0.001 profit in 1Q 2022)

Ecobuilt Holdings Berhad (KLSE:ECOHLDS) First Quarter 2023 ResultsKey Financial Results Revenue: RM51.5m (up 127% from 1Q 2022). Net loss: RM2.20m (down from RM258.0k profit in 1Q 2022). RM0.006 loss per share (down from RM0.001 profit in 1Q 2022).  KLSE:ECOHLDS Earnings and Revenue History October 31st 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Ecobuilt Holdings Berhad's share price is broadly unchanged from a week ago.   Risk Analysis Before we wrap up, we've discovered 4 warning signs for Ecobuilt Holdings Berhad that you should be aware of.Valuation is complex, but we're helping make it simple.Find out whether Ecobuilt 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.


Edaran Berhad Second Quarter 2023 Earnings: EPS: RM0.022 (vs RM0.002 in 2Q 2022)

Edaran Berhad (KLSE:EDARAN) Second Quarter 2023 ResultsKey Financial Results Revenue: RM19.9m (up 21% from 2Q 2022). Net income: RM1.28m (up by RM1.16m from 2Q 2022). Profit margin: 6.5% (up from 0.8% in 2Q 2022). The increase in margin was driven by higher revenue. EPS: RM0.022 (up from RM0.002 in 2Q 2022).  KLSE:EDARAN Earnings and Revenue History March 3rd 2023 All figures shown in the chart above are for the trailing 12 month (TTM) period Edaran Berhad shares are down 2.8% from a week ago.   Risk Analysis It is worth noting though that we have found 2 warning signs for Edaran Berhad (1 shouldn't be ignored!) that you need to take into consideration. Valuation is complex, but we're helping make it simple.Find out whether Edaran 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.


Edaran Berhad's (KLSE:EDARAN) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?

It is hard to get excited after looking at Edaran Berhad's (KLSE:EDARAN) recent performance, when its stock has declined 15% over the past three months.   But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals.     In this article, we decided to focus on Edaran Berhad's  ROE.    Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested.  Simply put, it is used to assess the profitability of a company in relation to its equity capital.  See our latest analysis for Edaran 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 Edaran Berhad is:2.0% = RM566k ÷ RM29m (Based on the trailing twelve months to December 2022). The 'return' is the amount earned after tax over the last twelve months.  So, this means that for every MYR1 of its shareholder's investments, the company generates a profit of MYR0.02.   Why Is ROE Important For Earnings Growth?  We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings.  Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits.  Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.  Edaran Berhad's Earnings Growth And 2.0% ROE   It is hard to argue that Edaran Berhad's ROE is much good in and of itself.   Not just that, even compared to the industry average of 14%, the company's ROE is entirely unremarkable.   However, the moderate 13% net income growth seen by Edaran Berhad over the past five years is definitely a positive.  We believe that there might be other aspects that are positively influencing the company's earnings growth.  For instance, the company has a low payout ratio or is being managed efficiently.     Given that the industry shrunk its earnings at a rate of 4.0% in the same period, the net income growth of the company is quite impressive.   KLSE:EDARAN Past Earnings Growth May 17th 2023 Earnings growth is an important metric to consider when valuing a stock.   The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in.   This then helps them determine if the stock is placed for a bright or bleak future.    Is Edaran Berhad fairly valued compared to other companies? These 3 valuation measures might help you decide.    Is Edaran Berhad Using Its Retained Earnings Effectively?    Edaran Berhad has a three-year median payout ratio of 40%, which implies that it retains the remaining 60% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently.     Along with seeing a growth in earnings, Edaran Berhad only recently started paying dividends. Its quite possible that the company was looking to impress its shareholders.     Summary    Overall, we feel that Edaran Berhad certainly does have some positive factors to consider.      Even in spite of the low rate of return, the company has posted impressive earnings growth as a result of reinvesting heavily into its business.       While we won't completely dismiss the company, what we would do, is try to ascertain how risky the business is to make a more informed decision around the company.    Our risks dashboard would have the 2 risks we have identified for Edaran Berhad.    Valuation is complex, but we're helping make it simple.Find out whether Edaran Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


Estimating The Intrinsic Value Of Edaran Berhad (KLSE:EDARAN)

Does the August share price for Edaran Berhad (KLSE:EDARAN) reflect what it's really worth? Today, we will estimate the stock's intrinsic value  by taking the expected future cash flows and discounting them to their present value.  This will be done using the Discounted Cash Flow (DCF) model.  It may sound complicated, but actually it is quite simple!  Remember though, that there are many ways to estimate a company's value, and a DCF is just one method.  If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model.  Check out our latest analysis for Edaran Berhad  Step By Step Through The Calculation   We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate.  To begin with, we have to get estimates of the next ten years of cash flows.   Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.   A DCF is all about the idea that a dollar in the future is less valuable than a dollar today,  and so the sum of these future cash flows is then discounted to today's value:  10-year free cash flow (FCF) estimate  2023 2024 2025 2026 2027 2028 2029 2030 2031 2032  Levered FCF (MYR, Millions)  RM3.68m RM3.42m RM3.29m RM3.23m RM3.23m RM3.26m RM3.32m RM3.39m RM3.48m RM3.58m Growth Rate Estimate Source Est @ -11.7% Est @ -7.13% Est @ -3.92% Est @ -1.68% Est @ -0.11% Est @ 0.99% Est @ 1.76% Est @ 2.29% Est @ 2.67% Est @ 2.93%  Present Value (MYR, Millions) Discounted @ 9.6%  RM3.4 RM2.8 RM2.5 RM2.2 RM2.0 RM1.9 RM1.7 RM1.6 RM1.5 RM1.4 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM21m After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage.  For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (3.6%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.6%. Terminal Value (TV)= FCF2032 × (1 + g) ÷ (r – g) = RM3.6m× (1 + 3.6%) ÷ (9.6%– 3.6%) = RM61mPresent Value of Terminal Value (PVTV)= TV / (1 + r)10= RM61m÷ ( 1 + 9.6%)10= RM24m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value,  which in this case is RM45m.  To get the intrinsic value per share, we divide this by the total number of shares outstanding.  Compared to the current share price of RM0.6, the company appears   about fair value    at a 18% discount to where the stock price trades currently.   Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. KLSE:EDARAN Discounted Cash Flow August 13th 2022  The Assumptions  Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.  Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions.  The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance.  Given that we are looking at Edaran Berhad as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt.  In this calculation we've used 9.6%, which is based on a levered beta of 1.122. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.   Next Steps:  Whilst important, the DCF calculation  shouldn't be the only metric you look at when researching a company.  It's not possible to obtain a foolproof valuation with a DCF model.  Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation.  For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result.  For Edaran Berhad, there are three  further  aspects  you should further examine:   Risks: For example, we've discovered 2 warning signs for Edaran Berhad (1 makes us a bit uncomfortable!) that you should be aware of before investing here.   Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!  Other Environmentally-Friendly Companies: Concerned about the environment and think consumers will buy eco-friendly products more and more? Browse through our interactive list of companies that are thinking about a greener future to discover some stocks you may not have thought of!   PS. Simply Wall St updates its DCF calculation for every Malaysian stock every day, so if you want to find the intrinsic value of any other stock just search here.Valuation is complex, but we're helping make it simple.Find out whether Edaran 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.


Efficient E-Solutions Berhad Full Year 2022 Earnings: RM0.002 loss per share (vs RM0.005 loss in FY 2021)

Efficient E-Solutions Berhad (KLSE:EFFICEN) Full Year 2022 ResultsKey Financial Results Revenue: RM18.9m (up 96% from FY 2021). Net loss: RM1.24m (loss narrowed by 63% from FY 2021). RM0.002 loss per share (improved from RM0.005 loss in FY 2021).  KLSE:EFFICEN Earnings and Revenue History February 26th 2023 All figures shown in the chart above are for the trailing 12 month (TTM) period Efficient E-Solutions Berhad shares are down 2.5% from a week ago.   Risk Analysis We should say that we've discovered 2 warning signs for Efficient E-Solutions Berhad that you should be aware of before investing here. Valuation is complex, but we're helping make it simple.Find out whether Efficient E-Solutions Berhad is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


Here's Why We're Not Too Worried About Efficient E-Solutions Berhad's (KLSE:EFFICEN) Cash Burn Situation

Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the right price.   For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring revenue, if you held shares since 2005, you'd have done very well indeed.   Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed.  So, the natural question for Efficient E-Solutions Berhad (KLSE:EFFICEN) shareholders is whether they should be concerned by its rate of cash burn.   In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth.  We'll start by comparing its cash burn with its cash reserves in order to calculate its cash runway.  Check out our latest analysis for Efficient E-Solutions Berhad  When Might Efficient E-Solutions Berhad Run Out Of Money?  A company's cash runway is calculated by dividing its cash hoard by its cash burn.   When Efficient E-Solutions Berhad last reported its balance sheet in September 2022, it had zero debt and cash worth RM44m.   Looking at the last year, the company burnt through RM6.5m.   So it had a cash runway of about 6.7 years from September 2022.     Even though this is but one measure of the company's cash burn, the thought of such a long cash runway warms our bellies in a comforting way.    Depicted below, you can see how its cash holdings have changed over time. KLSE:EFFICEN Debt to Equity History February 4th 2023 How Well Is Efficient E-Solutions Berhad Growing? Some investors might find it troubling that Efficient E-Solutions Berhad is actually increasing its cash burn, which is up 22% in the last year.   Given that its operating revenue increased 181% in that time, it seems the company has reason to think its expenditure is working well to drive growth.   If revenue is maintained once spending on growth decreases, that could well pay off!      We think it is growing rather well, upon reflection.     In reality, this article only makes a short study of the company's growth data.   You can take a look at how Efficient E-Solutions Berhad is growing revenue over time by checking  this visualization of past revenue growth.   How Easily Can Efficient E-Solutions Berhad Raise Cash?  We are certainly impressed with the progress Efficient E-Solutions Berhad has made over the last year, but it is also worth considering how costly it would be if it wanted to raise more cash to fund faster growth.    Companies can raise capital through either debt or equity.  Commonly, a business will sell new shares in itself to raise cash and drive growth.  By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate).  Since it has a market capitalisation of RM156m, Efficient E-Solutions Berhad's RM6.5m in cash burn equates to about 4.2% of its market value.    That's a low proportion, so we figure the company would be able to raise more cash to fund growth, with a little dilution, or even to simply borrow some money.   So, Should We Worry About Efficient E-Solutions Berhad's Cash Burn?  It may already be apparent to you that we're relatively comfortable with the way Efficient E-Solutions Berhad is burning through its cash.  For example, we think its revenue growth suggests that the company is on a good path.   While its increasing cash burn wasn't great, the other factors mentioned in this article more than make up for weakness on that measure.     After taking into account the various metrics mentioned in this report, we're pretty comfortable with how the company is spending its cash, as it seems on track to meet its needs over the medium term.     Its important for readers to be cognizant of the risks that can affect the company's operations, and we've picked out 3 warning signs for Efficient E-Solutions Berhad that investors should know when investing in the stock.   If you would prefer to check out another company with better fundamentals, then do not miss this free list of interesting companies, that have HIGH return on equity and low debt or this list of stocks which are all forecast to grow. Valuation is complex, but we're helping make it simple.Find out whether Efficient E-Solutions 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.


Do Its Financials Have Any Role To Play In Driving Excel Force MSC Berhad's (KLSE:EFORCE) Stock Up Recently?

Most readers would already be aware that Excel Force MSC Berhad's (KLSE:EFORCE) stock increased significantly by 14% over the past month.   We wonder if and what role the company's financials play in that price change as a company's long-term fundamentals usually dictate market outcomes.      In this article, we decided to focus on Excel Force MSC Berhad's  ROE.    Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested.  In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.  View our latest analysis for Excel Force MSC Berhad  How Is ROE Calculated?  Return on equity can be calculated by using the formula:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Excel Force MSC Berhad is:8.0% = RM8.6m ÷ RM107m (Based on the trailing twelve months to December 2022). The 'return' is the income the business earned over the last year.  Another way to think of that is that for every MYR1 worth of equity, the company was able to earn MYR0.08 in profit.   What Has ROE Got To Do With Earnings Growth?  We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings.  Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits.  Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.  A Side By Side comparison of Excel Force MSC Berhad's Earnings Growth And 8.0% ROE  On the face of it, Excel Force MSC Berhad's ROE is not much to talk about.   However, its ROE is similar to the industry average of 8.2%, so we won't completely dismiss the company.   Even so, Excel Force MSC Berhad has shown a fairly decent growth in its net income which grew at a rate of 14%.  Considering the moderately low ROE, it is quite possible that there might be some other aspects that are positively influencing the company's earnings growth.  For instance, the company has a low payout ratio or is being managed efficiently.     Next, on comparing Excel Force MSC Berhad's net income growth with the industry, we found that the company's reported growth is similar to the industry average growth rate of 16% in the same period.   KLSE:EFORCE Past Earnings Growth May 31st 2023 Earnings growth is a huge factor in stock valuation.  It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline).  By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await.    One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Excel Force MSC Berhad is trading on a high P/E or a low P/E, relative to its industry.    Is Excel Force MSC Berhad Efficiently Re-investing Its Profits?   The high three-year median payout ratio of 67% (or a retention ratio of 33%) for Excel Force MSC Berhad suggests that the company's growth wasn't really hampered despite it returning most of its income to its shareholders.      Besides, Excel Force MSC Berhad has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders.     Conclusion    In total, it does look like Excel Force MSC Berhad has some positive aspects to its business.      Namely, its high earnings growth. We do however feel that the earnings growth number could have been even higher, had the company been reinvesting more of its earnings and paid out less dividends.      Until now, we have only just grazed the surface of the company's past performance by looking at the company's fundamentals.   You can do your own research on Excel Force MSC Berhad and see how it has performed in the past by looking at this FREE detailed graph of past earnings, revenue and cash flows. Valuation is complex, but we're helping make it simple.Find out whether Excel Force MSC 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.


Excel Force MSC Berhad Reports Third Quarter 2022 Earnings

Excel Force MSC Berhad (KLSE:EFORCE) Third Quarter 2022 ResultsKey Financial Results Revenue: RM7.00m (down 30% from 3Q 2021). Net income: RM1.82m (down 50% from 3Q 2021). Profit margin: 26% (down from 36% in 3Q 2021). The decrease in margin was driven by lower revenue.  KLSE:EFORCE Earnings and Revenue History December 4th 2022 All figures shown in the chart above are for the trailing 12 month (TTM) period Excel Force MSC Berhad shares are up 6.2% from a week ago.   Risk Analysis You should learn about the   3 warning signs  we've spotted with Excel Force MSC Berhad (including 1 which shouldn't be ignored). Valuation is complex, but we're helping make it simple.Find out whether Excel Force MSC 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.


Positive earnings growth hasn't been enough to get Excel Force MSC Berhad (KLSE:EFORCE) shareholders a favorable return over the last five years

We think intelligent long term investing is the way to go.  But unfortunately, some companies simply don't succeed.  For example, after five long years the Excel Force MSC Berhad (KLSE:EFORCE) share price is a whole 61% lower.  We certainly feel for shareholders who bought near the top.     The recent uptick of 11% could be a positive sign of things to come, so let's take a lot at historical fundamentals.   See our latest analysis for Excel Force MSC Berhad   To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine.  One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).   During the unfortunate half decade during which the share price slipped, Excel Force MSC Berhad actually saw its earnings per share (EPS) improve by 8.4% per year.  Given the share price reaction, one might suspect that EPS is not a good guide to the business performance during the period (perhaps due to a one-off loss or gain).  Or possibly, the market was previously very optimistic, so the stock has disappointed, despite improving EPS.   Because of the sharp contrast between the EPS growth rate and the share price growth, we're inclined to look to other metrics to understand the changing market sentiment around the stock.  In contrast to the share price, revenue has actually increased by 12% a year in the five year period.  So it seems one might have to take closer look at the fundamentals to understand why the share price languishes. After all, there may be an opportunity.      You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values). KLSE:EFORCE Earnings and Revenue Growth August 10th 2022 This free interactive report on Excel Force MSC Berhad's balance sheet strength is a great place to start, if you want to investigate the stock further.   What About Dividends? It is important to consider the total shareholder return, as well as the share price return, for any given stock.  Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off.  Arguably, the TSR gives a more comprehensive picture of the return generated by a stock.  As it happens, Excel Force MSC Berhad's TSR for the last 5 years was -57%, which exceeds the share price return mentioned earlier.  The dividends paid by the company have thusly boosted the total shareholder return.  A Different Perspective We regret to report that Excel Force MSC Berhad shareholders are down 6.3% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 0.2%.  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.    Unfortunately, longer term shareholders are suffering worse, given the loss of 9% doled out over the last five years.  We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize.       It's always interesting to track share price performance over the longer term. But to understand Excel Force MSC Berhad better, we need to consider many other factors.   To that end, you should be aware of the   2 warning signs  we've spotted with Excel Force MSC Berhad .    We will like Excel Force MSC Berhad better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on MY exchanges.Valuation is complex, but we're helping make it simple.Find out whether Excel Force MSC 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.


Evd Berhad Full Year 2022 Earnings: EPS: RM0.018 (vs RM0.008 loss in FY 2021)

Evd Berhad (KLSE:EVD) Full Year 2022 ResultsKey Financial Results Revenue: RM94.4m (up by RM81.5m from FY 2021). Net income: RM7.44m (up from RM229.2k loss in FY 2021). Profit margin: 7.9% (up from net loss in FY 2021). The move to profitability was driven by higher revenue. EPS: RM0.018 (up from RM0.008 loss in FY 2021).  KLSE:EVD Earnings and Revenue History March 3rd 2023 All figures shown in the chart above are for the trailing 12 month (TTM) period Evd Berhad shares are up 5.4% from a week ago.   Risk Analysis You still need to take note of risks, for example - Evd Berhad has   3 warning signs  (and 2 which shouldn't be ignored)  we think you should know about. Valuation is complex, but we're helping make it simple.Find out whether Evd 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.