Latest news with #EPS
Yahoo
4 hours ago
- Business
- Yahoo
Those who invested in Sarawak Plantation Berhad (KLSE:SWKPLNT) five years ago are up 110%
Stock pickers are generally looking for stocks that will outperform the broader market. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. For example, the Sarawak Plantation Berhad (KLSE:SWKPLNT) share price is up 48% in the last 5 years, clearly besting the market return of around 6.2% (ignoring dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 18% in the last year, including dividends. Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During five years of share price growth, Sarawak Plantation Berhad achieved compound earnings per share (EPS) growth of 34% per year. This EPS growth is higher than the 8% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days. This cautious sentiment is reflected in its (fairly low) P/E ratio of 6.89. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). We know that Sarawak Plantation Berhad has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Sarawak Plantation Berhad will grow revenue in the future. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Sarawak Plantation Berhad's TSR for the last 5 years was 110%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. We're pleased to report that Sarawak Plantation Berhad shareholders have received a total shareholder return of 18% over one year. That's including the dividend. That gain is better than the annual TSR over five years, which is 16%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Sarawak Plantation Berhad (of which 1 can't be ignored!) you should know about. For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges. 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. Sign in to access your portfolio
Yahoo
8 hours ago
- Business
- Yahoo
3 Reasons to Sell LESL and 1 Stock to Buy Instead
What a brutal six months it's been for Leslie's. The stock has dropped 76.9% and now trades at $0.48, rattling many shareholders. This was partly driven by its softer quarterly results and might have investors contemplating their next move. Is there a buying opportunity in Leslie's, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it's free. Even though the stock has become cheaper, we're cautious about Leslie's. Here are three reasons why you should be careful with LESL and a stock we'd rather own. Same-store sales show the change in sales for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year. This is a key performance indicator because it measures organic growth. Leslie's demand has been shrinking over the last two years as its same-store sales have averaged 8.6% annual declines. We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable. Leslie's full-year EPS turned negative over the last four years. In a mature sector such as consumer retail, we tend to steer our readers away from companies with falling EPS because it could imply changing secular trends and preferences. If the tide turns unexpectedly, Leslie's low margin of safety could leave its stock price susceptible to large downswings. As long-term investors, the risk we care about most is the permanent loss of capital, which can happen when a company goes bankrupt or raises money from a disadvantaged position. This is separate from short-term stock price volatility, something we are much less bothered by. Leslie's $1.11 billion of debt exceeds the $17.25 million of cash on its balance sheet. Furthermore, its 12× net-debt-to-EBITDA ratio (based on its EBITDA of $87.06 million over the last 12 months) shows the company is overleveraged. At this level of debt, incremental borrowing becomes increasingly expensive and credit agencies could downgrade the company's rating if profitability falls. Leslie's could also be backed into a corner if the market turns unexpectedly – a situation we seek to avoid as investors in high-quality companies. We hope Leslie's can improve its balance sheet and remain cautious until it increases its profitability or pays down its debt. We cheer for all companies serving everyday consumers, but in the case of Leslie's, we'll be cheering from the sidelines. Following the recent decline, the stock trades at 6.6× forward P/E (or $0.48 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are superior stocks to buy right now. We'd suggest looking at a dominant Aerospace business that has perfected its M&A strategy. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
8 hours ago
- Business
- Yahoo
3 Reasons to Sell PFS and 1 Stock to Buy Instead
Over the last six months, Provident Financial Services's shares have sunk to $16.14, producing a disappointing 13.4% loss - a stark contrast to the S&P 500's 1.9% gain. This may have investors wondering how to approach the situation. Is there a buying opportunity in Provident Financial Services, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it's free. Even though the stock has become cheaper, we're cautious about Provident Financial Services. Here are three reasons why we avoid PFS and a stock we'd rather own. Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions. Sadly for Provident Financial Services, its EPS declined by 3.8% annually over the last five years while its revenue grew by 16.8%. This tells us the company became less profitable on a per-share basis as it expanded. For banks, tangible book value per share (TBVPS) is a crucial metric that measures the actual value of shareholders' equity, stripping out goodwill and other intangible assets that may not be recoverable in a worst-case scenario. Disappointingly for investors, Provident Financial Services's TBVPS continued freefalling over the past two years as TBVPS declined at a -5.2% annual clip (from $15.76 to $14.15 per share). Leverage is core to the bank's business model (loans funded by deposits) and to ensure their stability, regulators require certain levels of capital and liquidity, focusing on a bank's Tier 1 capital ratio. Tier 1 capital is the highest-quality capital that a bank holds, consisting primarily of common stock and retained earnings, but also physical gold. It serves as the primary cushion against losses and is the first line of defense in times of financial distress. This capital is divided by risk-weighted assets to derive the Tier 1 capital ratio. Risk-weighted means that cash and US treasury securities are assigned little risk while unsecured consumer loans and equity investments get much higher risk weights, for example. New regulation after the 2008 financial crisis requires that all banks must maintain a Tier 1 capital ratio greater than 4.5% On top of this, there are additional buffers based on scale, risk profile, and other regulatory classifications, so that at the end of the day, banks generally must maintain a 7-10% ratio at minimum. Over the last two years, Provident Financial Services has averaged a Tier 1 capital ratio of 10.7%, which is considered unsafe in the event of a black swan or if macro or market conditions suddenly deteriorate. For this reason alone, we will be crossing it off our shopping list. Provident Financial Services isn't a terrible business, but it doesn't pass our quality test. Following the recent decline, the stock trades at 0.8× forward P/B (or $16.14 per share). While this valuation is optically cheap, the potential downside is big given its shaky fundamentals. We're fairly confident there are better investments elsewhere. We'd recommend looking at the most dominant software business in the world. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
13 hours ago
- Business
- Yahoo
Investing in Kinsale Capital Group (NYSE:KNSL) five years ago would have delivered you a 212% gain
When you buy a stock there is always a possibility that it could drop 100%. But when you pick a company that is really flourishing, you can make more than 100%. One great example is Kinsale Capital Group, Inc. (NYSE:KNSL) which saw its share price drive 209% higher over five years. So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During five years of share price growth, Kinsale Capital Group achieved compound earnings per share (EPS) growth of 50% per year. This EPS growth is higher than the 25% average annual increase in the share price. So one could conclude that the broader market has become more cautious towards the stock. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Kinsale Capital Group, it has a TSR of 212% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence! It's nice to see that Kinsale Capital Group shareholders have received a total shareholder return of 17% over the last year. That's including the dividend. However, that falls short of the 26% TSR per annum it has made for shareholders, each year, over five years. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Kinsale Capital Group you should know about. But note: Kinsale Capital Group may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. — 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.
Yahoo
15 hours ago
- Business
- Yahoo
The total return for X Financial (NYSE:XYF) investors has risen faster than earnings growth over the last three years
Generally speaking, investors are inspired to be stock pickers by the potential to find the big winners. Mistakes are inevitable, but a single top stock pick can cover any losses, and so much more. For example, the X Financial (NYSE:XYF) share price is up a whopping 534% in the last three years, a handsome return for long term holders. Also pleasing for shareholders was the 37% gain in the last three months. Anyone who held for that rewarding ride would probably be keen to talk about it. Since the long term performance has been good but there's been a recent pullback of 8.0%, let's check if the fundamentals match the share price. 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. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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 three years of share price growth, X Financial achieved compound earnings per share growth of 40% per year. This EPS growth is lower than the 85% average annual increase in the share price. This indicates that the market is feeling more optimistic on the stock, after the last few years of progress. It's not unusual to see the market 're-rate' a stock, after a few years of growth. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). Dive deeper into X Financial's key metrics by checking this interactive graph of X Financial's earnings, revenue and cash flow. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, X Financial's TSR for the last 3 years was 611%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! We're pleased to report that X Financial shareholders have received a total shareholder return of 303% over one year. That's including the dividend. That's better than the annualised return of 47% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand X Financial better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for X Financial you should know about. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. — 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 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
