Latest news with #EBIT
Yahoo
5 days ago
- Business
- Yahoo
Nam Cheong (SGX:1MZ) Is Very Good At Capital Allocation
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. 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. With that in mind, the ROCE of Nam Cheong (SGX:1MZ) looks great, so lets see what the trend can tell us. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Nam Cheong, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.28 = RM295m ÷ (RM1.3b - RM208m) (Based on the trailing twelve months to March 2025). Therefore, Nam Cheong has an ROCE of 28%. In absolute terms that's a great return and it's even better than the Machinery industry average of 4.4%. Check out our latest analysis for Nam Cheong While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of Nam Cheong. The trends we've noticed at Nam Cheong are quite reassuring. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 28%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 69%. So we're very much inspired by what we're seeing at Nam Cheong thanks to its ability to profitably reinvest capital. On a related note, the company's ratio of current liabilities to total assets has decreased to 17%, which basically reduces it's funding from the likes of short-term creditors or suppliers. So shareholders would be pleased that the growth in returns has mostly come from underlying business performance. To sum it up, Nam Cheong has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. Since the stock has only returned 20% to shareholders over the last five years, the promising fundamentals may not be recognized yet by investors. So with that in mind, we think the stock deserves further research. On a separate note, we've found 4 warning signs for Nam Cheong you'll probably want to know about. If you want to search for more stocks that have been earning high returns, check out this free list of stocks with solid balance sheets that are also earning high returns on equity. 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.
Yahoo
6 days ago
- Business
- Yahoo
Investors Shouldn't Overlook Stelrad Group's (LON:SRAD) Impressive Returns On Capital
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. And in light of that, the trends we're seeing at Stelrad Group's (LON:SRAD) look very promising so lets take a look. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for Stelrad Group, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.20 = UK£30m ÷ (UK£221m - UK£73m) (Based on the trailing twelve months to December 2024). Thus, Stelrad Group has an ROCE of 20%. That's a fantastic return and not only that, it outpaces the average of 8.3% earned by companies in a similar industry. See our latest analysis for Stelrad Group Above you can see how the current ROCE for Stelrad Group 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 analyst report for Stelrad Group . Investors would be pleased with what's happening at Stelrad Group. The data shows that returns on capital have increased substantially over the last five years to 20%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 57%. So we're very much inspired by what we're seeing at Stelrad Group thanks to its ability to profitably reinvest capital. All in all, it's terrific to see that Stelrad Group is reaping the rewards from prior investments and is growing its capital base. And since the stock has fallen 14% over the last three years, there might be an opportunity here. So researching this company further and determining whether or not these trends will continue seems justified. One more thing to note, we've identified 2 warning signs with Stelrad Group and understanding them should be part of your investment process. If you want to search for more stocks that have been earning high returns, check out this free list of stocks with solid balance sheets that are also earning high returns on equity. 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 in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Automotive
- Yahoo
British carmaker JLR trims FY26 margin forecast to 5%-7% as US tariffs cast shadow
(Reuters) -British luxury carmaker Jaguar Land Rover cut its fiscal 2026 earnings before interest and taxes margins forecast to 5%-7% on Monday from 10% earlier, citing uncertainty in the global auto industry as U.S. tariffs loom. Shares in the company's Indian parent Tata Motors dropped as much as 4.7% in early trade after the announcement. JLR's EBIT margin forecast was also below its reported margin of 8.5% for the previous fiscal year. JLR, which gets over a quarter of its sales from the U.S., had temporarily paused shipments to the country after its President Donald Trump slapped a 25% duty on all foreign-made vehicles sold in the world's second-largest car market. Tata Motors' ownership of JLR makes it among the most exposed Indian automakers to Trump's tariffs on vehicle imports. Unlike most of its rivals, including German brands Mercedes- Benz and BMW, JLR has no manufacturing presence in the U.S.
Yahoo
7 days ago
- Automotive
- Yahoo
British carmaker JLR trims FY26 margin forecast to 5%-7% as US tariffs cast shadow
(Reuters) -British luxury carmaker Jaguar Land Rover cut its fiscal 2026 earnings before interest and taxes margins forecast to 5%-7% on Monday from 10% earlier, citing uncertainty in the global auto industry as U.S. tariffs loom. Shares in the company's Indian parent Tata Motors dropped as much as 4.7% in early trade after the announcement. JLR's EBIT margin forecast was also below its reported margin of 8.5% for the previous fiscal year. JLR, which gets over a quarter of its sales from the U.S., had temporarily paused shipments to the country after its President Donald Trump slapped a 25% duty on all foreign-made vehicles sold in the world's second-largest car market. Tata Motors' ownership of JLR makes it among the most exposed Indian automakers to Trump's tariffs on vehicle imports. Unlike most of its rivals, including German brands Mercedes- Benz and BMW, JLR has no manufacturing presence in the U.S. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-06-2025
- Business
- Yahoo
We Ran A Stock Scan For Earnings Growth And Tower (NZSE:TWR) Passed With Ease
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 can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Tower (NZSE:TWR). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. In the last three years Tower's earnings per share took off; so much so that it's a bit disingenuous to use these figures to try and deduce long term estimates. As a result, we'll zoom in on growth over the last year, instead. Outstandingly, Tower's EPS shot from NZ$0.10 to NZ$0.26, over the last year. It's not often a company can achieve year-on-year growth of 152%. 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 Tower is growing revenues, and EBIT margins improved by 10.8 percentage points to 21%, 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. Check out our latest analysis for Tower Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for Tower. Insider interest in a company always sparks a bit of intrigue and many investors are on the lookout for companies where insiders are putting their money where their mouth is. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. Of course, we can never be sure what insiders are thinking, we can only judge their actions. The first bit of good news is that no Tower insiders reported share sales in the last twelve months. Even better, though, is that the company insider, Blair Turnbull, bought a whopping NZ$429k worth of shares, paying about NZ$1.48 per share, on average. Big buys like that may signal an opportunity; actions speak louder than words. Tower's earnings have taken off in quite an impressive fashion. Most growth-seeking investors will find it hard to ignore that sort of explosive EPS growth. And may very well signal a significant inflection point for the business. If this is the case, then keeping a watch over Tower could be in your best interest. We should say that we've discovered 2 warning signs for Tower (1 makes us a bit uncomfortable!) that you should be aware of before investing here. There are plenty of other companies that have insiders buying up shares. So if you like the sound of Tower, you'll probably love this curated collection of companies in NZ that have an attractive valuation alongside insider buying in the last three months. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. 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.
