logo
Japanese Space-Debris Firm Loses Half Its Value a Year After IPO

Japanese Space-Debris Firm Loses Half Its Value a Year After IPO

Bloomberg04-06-2025

When Astroscale Holdings Inc. began trading in Tokyo a year ago, excitement over the Japanese space-debris pioneer was riding so high that the stock surged 62%, making it a billion-dollar company.
That lasted one day. The shares have since halved after those lofty expectations soured, with the company announcing delays of some projects and lowering some of its earnings estimates.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Does The Market Have A Low Tolerance For GreenTree Hospitality Group Ltd.'s (NYSE:GHG) Mixed Fundamentals?
Does The Market Have A Low Tolerance For GreenTree Hospitality Group Ltd.'s (NYSE:GHG) Mixed Fundamentals?

Yahoo

time27 minutes ago

  • Yahoo

Does The Market Have A Low Tolerance For GreenTree Hospitality Group Ltd.'s (NYSE:GHG) Mixed Fundamentals?

It is hard to get excited after looking at GreenTree Hospitality Group's (NYSE:GHG) recent performance, when its stock has declined 18% over the past three months. We, however decided to study the company's financials to determine if they have got anything to do with the price decline. Stock prices are usually driven by a company's financial performance over the long term, and therefore we decided to pay more attention to the company's financial performance. Specifically, we decided to study GreenTree Hospitality Group's ROE in this article. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. 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 GreenTree Hospitality Group is: 7.2% = CN¥107m ÷ CN¥1.5b (Based on the trailing twelve months to December 2024). The 'return' is the amount earned after tax over the last twelve months. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.07. See our latest analysis for GreenTree Hospitality Group 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. 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. On the face of it, GreenTree Hospitality Group's ROE is not much to talk about. Next, when compared to the average industry ROE of 19%, the company's ROE leaves us feeling even less enthusiastic. For this reason, GreenTree Hospitality Group's five year net income decline of 16% is not surprising given its lower ROE. We reckon that there could also be other factors at play here. Such as - low earnings retention or poor allocation of capital. That being said, we compared GreenTree Hospitality Group's performance with the industry and were concerned when we found that while the company has shrunk its earnings, the industry has grown its earnings at a rate of 33% in the same 5-year period. Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. Is GreenTree Hospitality Group fairly valued compared to other companies? These 3 valuation measures might help you decide. In spite of a normal three-year median payout ratio of 27% (that is, a retention ratio of 73%), the fact that GreenTree Hospitality Group's earnings have shrunk is quite puzzling. So there could be some other explanations in that regard. For instance, the company's business may be deteriorating. Moreover, GreenTree Hospitality Group has been paying dividends for six years, which is a considerable amount of time, suggesting that management must have perceived that the shareholders prefer consistent dividends even though earnings have been shrinking. Overall, we have mixed feelings about GreenTree Hospitality Group. Even though it appears to be retaining most of its profits, given the low ROE, investors may not be benefitting from all that reinvestment after all. The low earnings growth suggests our theory correct. Wrapping up, we would proceed with caution with this company and one way of doing that would be to look at the risk profile of the business. Our risks dashboard would have the 4 risks we have identified for GreenTree Hospitality Group. — Investing narratives with Fair Values Vita Life Sciences Set for a 12.72% Revenue Growth While Tackling Operational Challenges By Robbo – Community Contributor Fair Value Estimated: A$2.42 · 0.1% Overvalued Vossloh rides a €500 billion wave to boost growth and earnings in the next decade By Chris1 – Community Contributor Fair Value Estimated: €78.41 · 0.1% Overvalued Intuitive Surgical Will Transform Healthcare with 12% Revenue Growth By Unike – Community Contributor Fair Value Estimated: $325.55 · 0.6% Undervalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data

Why Redwire Stock Tumbled by Nearly 17% This Week
Why Redwire Stock Tumbled by Nearly 17% This Week

Yahoo

timean hour ago

  • Yahoo

Why Redwire Stock Tumbled by Nearly 17% This Week

The company fell earthward after it announced a capital-raising measure. It's also now on the hook for its latest portfolio acquisition. 10 stocks we like better than Redwire › Friday probably didn't come fast enough for space exploration equipment specialist Redwire (NYSE: RDW). After all, according to data compiled by S&P Global Market Intelligence, its share price fell by nearly 17% this week. A dilutive share issue and the closing of a pricey asset buy were two key factors in that double-digit dip. On Monday after market close, Redwire announced that it is floating a secondary issue of its common stock, and the following day divulged that the issue is being upsized. Ultimately, Redwire aims to float just over 15.5 million such shares at a price of $16.75 apiece, for total gross proceeds of roughly $260 million. Also, the underwriters of the issue have been granted a 30-day option to collectively purchase up to an additional 2.3 million-plus shares. Redwire said that it will use the net proceeds of the flotation for purposes such as balance sheet strengthening, the repurchase of convertible preferred stock outstanding, and debt retirement. Investors rarely greet news of share dilution warmly, and this issue certainly qualifies -- at the moment, Redwire's outstanding common share count is less than 142.6 million. While it's going to the well for more funds, at the same time, Redwire is about to spend a pile. On Wednesday, private equity firm Sleeping Bear Capital announced the completion of its sale of Edge Autonomy to Redwire. The deal, valued at over $1.1 billion, gives the company an unmanned aerial vehicle (UAV) developer that has contracts with federal agencies, as well as public-sector clients abroad. Since Redwire is still at a relatively early stage in its business life, it has to take available opportunities to keep its finances strong, and to grow. Dilution isn't pleasant, of course, but hopefully the company will manage to deploy that fresh capital smartly and efficiently. We can say the same for its ownership of Edge Autonomy. Before you buy stock in Redwire, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Redwire wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Redwire Stock Tumbled by Nearly 17% This Week was originally published by The Motley Fool

1 Soaring Growth Stock to Buy Hand Over Fist Before It Is Too Late
1 Soaring Growth Stock to Buy Hand Over Fist Before It Is Too Late

Yahoo

timean hour ago

  • Yahoo

1 Soaring Growth Stock to Buy Hand Over Fist Before It Is Too Late

Applied Materials stock is in rebound mode. Even better, it still trades at an attractive valuation. The semiconductor equipment supplier expects stronger growth in the future due to increased spending by chipmakers and foundries. Applied Materials stock could deliver terrific gains going forward thanks to favorable end-market developments. 10 stocks we like better than Applied Materials › Share prices of Applied Materials (NASDAQ: AMAT) have jumped impressively from the 52-week lows they hit just over two months ago, gaining 31% in a short time on the back of the broader rally in the tech-laden Nasdaq Composite index that has clocked solid gains of 25% during the same period. What's worth noting is that investors shrugged off Applied Materials' mixed fiscal 2025 second-quarter results (for the three months ended April 27), which were released on May 15. The semiconductor equipment supplier reported robust growth in sales and earnings for the quarter, but its top line was a tad lighter than expected. The company's outlook for the current quarter followed a similar pattern. However, savvy investors would do well to note that Applied Materials' results and guidance were resilient at a time when the tariff-fueled turmoil and the restrictions on sales of semiconductor equipment to China are turning out to be headwinds for the company. Let's take a look at the factors that could help Applied Materials stock maintain its momentum on the market. Applied Materials reported year-over-year growth of 7% in its revenue in the previous quarter, while its non-GAAP earnings per share (EPS) increased at a faster pace of 14%. A quarter of its revenue came from sales of semiconductor manufacturing equipment to China. For comparison, Applied Materials' top-line growth was flat in the same quarter last year, while its adjusted earnings increased at a much slower pace of 5%. Applied Materials got 43% of its revenue from Chinese customers in the year-ago period. So, the company's growth accelerated even though restrictions on sales of advanced chipmaking equipment to Chinese customers hurt its business in its largest market abroad. This can be attributed to the global growth in semiconductor demand owing to catalysts such as artificial intelligence (AI). Equity research firm Summit Insights Group predicts that the improvement in demand for advanced chips in the second half of 2025 and next year should allow Applied Materials to continue doing well even if its Chinese business remains negatively impacted. Applied Materials CEO Gary Dickerson's remarks on last month's earnings conference call suggest something similar: The impact of AI datacenter innovation and investments is apparent in the wafer fab equipment market, where there are significant shifts in the spending mix this year. We see investment in leading edge foundry-logic growing substantially in 2025, and we also expect spending for leading-edge DRAM to be up significantly. Large-scale AI infrastructure investments such as the $500 billion Stargate project and the multibillion-dollar investments by cloud-computing giants to bolster their AI capabilities are the reasons why foundries and chipmakers are focused on enhancing their manufacturing capacities. Foundry giant Taiwan Semiconductor Manufacturing (NYSE: TSM), for instance, is set to increase its capital expenditures (capex) by 38% at the midpoint of its forecast to $40 billion in 2025. The Taiwan-based company is on track to build nine fabrication plants this year. TSMC further points out that it will spend 70% of its capital spending on advanced process nodes. That's not surprising as almost three-fourths of the company's revenue comes from selling chips manufactured using advanced nodes that are 7-nanometer (nm) or smaller in size. Looking ahead, TSMC estimates that its revenue from sales of AI chips is likely to increase at an annual rate of mid-40% through 2029. So, it won't be surprising to see the company spending more money on shoring up the production capacity of advanced chips to meet the AI-fueled demand. The increase in capex by the likes of TSMC is expected to drive a 2% increase in global semiconductor equipment spending this year to $110 billion, followed by a much stronger increase of 18% in 2026. This should ideally lead to an acceleration in Applied Materials' growth as well, paving the way for more stock price upside. Analysts are forecasting a 10% increase in Applied Materials' earnings this fiscal year to $9.49 per share. This is expected to be followed by a smaller jump in fiscal 2026 before another year of double-digit growth in fiscal 2027. However, the sharp acceleration in global semiconductor equipment spending could allow Applied Materials to grow at a faster rate over the next couple of years. But even if the company's bottom line grows in line with consensus expectations and its earnings hit $11.17 per share after a couple of fiscal years (as per the chart above), its stock price could jump to $329 (based on the tech-laden Nasdaq-100 index's forward earnings multiple of 29). That points toward an 88% gain from current levels in the next three years. Applied Materials stock is now trading at just 18 times forward earnings, which is a nice discount to the Nasdaq-100 index, which serves as a proxy for tech stocks. However, the market could reward Applied Materials with a richer earnings multiple in the future if it can deliver stronger-than-expected earnings growth. That's why savvy investors may want to buy this semiconductor stock while it is still trading at an incredibly cheap valuation, as it has the ability to go on a terrific bull run going forward. Before you buy stock in Applied Materials, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Applied Materials wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Applied Materials and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. 1 Soaring Growth Stock to Buy Hand Over Fist Before It Is Too Late was originally published by The Motley Fool Sign in to access your portfolio

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store