Shareholders Equity – Antochi http://antochi.ro/ Tue, 21 Jun 2022 00:22:04 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://antochi.ro/wp-content/uploads/2021/07/icon-1-150x150.png Shareholders Equity – Antochi http://antochi.ro/ 32 32 The fundamentals of Sinco Pharmaceuticals Holdings Limited (HKG:6833) look quite solid: could the market be wrong about the stock? https://antochi.ro/the-fundamentals-of-sinco-pharmaceuticals-holdings-limited-hkg6833-look-quite-solid-could-the-market-be-wrong-about-the-stock/ Mon, 20 Jun 2022 23:49:33 +0000 https://antochi.ro/the-fundamentals-of-sinco-pharmaceuticals-holdings-limited-hkg6833-look-quite-solid-could-the-market-be-wrong-about-the-stock/ It’s hard to get excited after looking at the recent performance of Sinco Pharmaceuticals Holdings (HKG:6833), as its stock has fallen 33% in the past three months. However, a closer look at his sound finances might make you think again. Since fundamentals generally determine long-term market outcomes, the company is worth looking into. Specifically, we […]]]>

It’s hard to get excited after looking at the recent performance of Sinco Pharmaceuticals Holdings (HKG:6833), as its stock has fallen 33% in the past three months. However, a closer look at his sound finances might make you think again. Since fundamentals generally determine long-term market outcomes, the company is worth looking into. Specifically, we decided to study the ROE of Sinco Pharmaceuticals Holdings in this article.

Return on equity or ROE is an important factor for a shareholder to consider as it tells them how much of their capital is being reinvested. In simple terms, it is used to assess the profitability of a company in relation to its equity.

Check out our latest analysis for Sinco Pharmaceuticals Holdings

How to calculate return on equity?

ROE can be calculated using the formula:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, the ROE for Sinco Pharmaceuticals Holdings is:

36% = CN¥135 million ÷ CN¥375 million (based on the last twelve months to December 2021).

The “return” is the annual profit. Another way to think about this is that for every HK$1 of equity, the company was able to make a profit of HK$0.36.

Why is ROE important for earnings growth?

So far, we have learned that ROE measures how efficiently a company generates its profits. Depending on how much of its profits the company chooses to reinvest or “keep”, we are then able to assess a company’s future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and earnings retention, the higher a company’s growth rate compared to companies that don’t necessarily exhibit these characteristics.

Sinco Pharmaceuticals Holdings earnings growth and ROE of 36%

For starters, Sinco Pharmaceuticals Holdings has a pretty high ROE, which is interesting. Second, a comparison to the industry-reported average ROE of 7.3% also does not go unnoticed for us. Under these circumstances, a considerable growth in the five-year net profit of Sinco Pharmaceuticals Holdings of 47% was to be expected.

In a next step, we benchmarked Sinco Pharmaceuticals Holdings’ net income growth with the industry, and fortunately, we found that the growth seen by the company is above the industry average growth of 8.5 %.

SEHK: 6833 Past Earnings Growth June 20, 2022

Earnings growth is an important factor in stock valuation. What investors then need to determine is whether the expected earnings growth, or lack thereof, is already priced into the stock price. By doing so, they will get an idea if the stock is headed for clear blue waters or if swampy waters are waiting. A 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 outlook. So, you might want to check if Sinco Pharmaceuticals Holdings is trading on a high P/E or a low P/E, relative to its industry.

Does Sinco Pharmaceuticals Holdings Use Retained Earnings Effectively?

Since Sinco Pharmaceuticals Holdings does not pay any dividends to its shareholders, we infer that the company has reinvested all its profits to grow its business.

Conclusion

Overall, we believe Sinco Pharmaceuticals Holdings’ performance has been quite good. In particular, we appreciate the fact that the company is reinvesting heavily in its business, and at a high rate of return. Unsurprisingly, this led to impressive earnings growth. If the company continues to increase its earnings as it has, it could have a positive impact on its share price given how earnings per share influence prices over the long term. Not to mention that stock price results also depend on the potential risks a company may face. It is therefore important for investors to be aware of the risks associated with the business. You can see the 2 risks we have identified for Sinco Pharmaceuticals Holdings by visiting our risk dashboard for free on our platform here.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Angling Direct PLC (LON:ANG) The stock has fallen but the fundamentals look good: will the market correct the stock price going forward? https://antochi.ro/angling-direct-plc-lonang-the-stock-has-fallen-but-the-fundamentals-look-good-will-the-market-correct-the-stock-price-going-forward/ Sun, 19 Jun 2022 07:33:29 +0000 https://antochi.ro/angling-direct-plc-lonang-the-stock-has-fallen-but-the-fundamentals-look-good-will-the-market-correct-the-stock-price-going-forward/ With its stock down 29% in the past three months, it’s easy to overlook Angling Direct (LON:ANG). But if you pay close attention, you might find that its leading financial indicators look pretty decent, which could mean the stock could potentially rise in the long run as markets generally reward more resilient long-term fundamentals. In […]]]>

With its stock down 29% in the past three months, it’s easy to overlook Angling Direct (LON:ANG). But if you pay close attention, you might find that its leading financial indicators look pretty decent, which could mean the stock could potentially rise in the long run as markets generally reward more resilient long-term fundamentals. In particular, we’ll be paying close attention to Angling Direct’s ROE today.

Return on equity or ROE is a key metric used to gauge how effectively a company’s management is using the company’s capital. In simple terms, it is used to assess the profitability of a company in relation to its equity.

Check out our latest analysis for Angling Direct

How do you calculate return on equity?

ROE can be calculated using the formula:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, the ROE for Angling Direct is:

8.4% = £3.1m ÷ £36m (based on trailing 12 months to January 2022).

The “yield” is the profit of the last twelve months. Another way to think about this is that for every £1 of equity, the company was able to make a profit of £0.08.

What does ROE have to do with earnings growth?

We have already established that ROE serves as an effective profit-generating indicator for a company’s future earnings. Depending on how much of its profits the company chooses to reinvest or “keep”, we are then able to assess a company’s future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and better earnings retention are generally the ones with a higher growth rate compared to companies that don’t. same characteristics.

Angling Direct 8.4% earnings growth and ROE

At first glance, Angling Direct’s ROE isn’t much to tell. A quick closer look shows that the company’s ROE also doesn’t compare favorably to the industry average of 21%. Despite this, surprisingly, Angling Direct has experienced an exceptional net income growth of 54% over the past five years. Therefore, there could be other reasons behind this growth. Such as – high revenue retention or effective management in place.

Then, comparing with the industry net income growth, we found that Angling Direct’s growth is quite high compared to the average industry growth of 4.8% over the same period, which which is great to see.

AIM: ANG Past Earnings Growth June 19, 2022

The basis for attaching value to a company is, to a large extent, linked to the growth of its profits. What investors then need to determine is whether the expected earnings growth, or lack thereof, is already priced into the stock price. By doing so, they will get an idea if the stock is headed for clear blue waters or if swampy waters are waiting. If you’re wondering about Angling Direct’s valuation, check out this indicator of its price-earnings ratio, relative to its industry.

Does Angling Direct use its profits effectively?

Angling Direct currently pays no dividends, which essentially means that it has reinvested all of its profits back into the business. This certainly contributes to the high earnings growth number we discussed above.

Conclusion

Overall, we feel that Angling Direct has positive attributes. Despite its low rate of return, the fact that the company reinvests a very large portion of its profits back into its business no doubt contributed to the strong growth in its profits. While we wouldn’t completely dismiss the business, what we would do is try to figure out how risky the business is to make a more informed decision about the business. To see the 2 risks we have identified for Angling Direct visit our free Risk Dashboard.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Is the strong financial outlook the driving force behind Ever Harvest Group Holdings Limited’s HKG:1549) stock? https://antochi.ro/is-the-strong-financial-outlook-the-driving-force-behind-ever-harvest-group-holdings-limiteds-hkg1549-stock/ Wed, 15 Jun 2022 22:53:19 +0000 https://antochi.ro/is-the-strong-financial-outlook-the-driving-force-behind-ever-harvest-group-holdings-limiteds-hkg1549-stock/ Shares of Ever Harvest Group Holdings (HKG:1549) are up 70% in the past three months. Given that the market rewards strong long-term financials, we wonder if this is the case in this case. In particular, we will pay attention to the ROE of Ever Harvest Group Holdings today. Return on equity or ROE is an […]]]>

Shares of Ever Harvest Group Holdings (HKG:1549) are up 70% in the past three months. Given that the market rewards strong long-term financials, we wonder if this is the case in this case. In particular, we will pay attention to the ROE of Ever Harvest Group Holdings today.

Return on equity or ROE is an important factor for a shareholder to consider as it tells them how much of their capital is being reinvested. In simple terms, it is used to assess the profitability of a company in relation to its equity.

See our latest analysis for Ever Harvest Group Holdings

How to calculate return on equity?

ROE can be calculated using the formula:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, the ROE for Ever Harvest Group Holdings is:

12% = HK$23 million ÷ HK$197 million (based on trailing 12 months to December 2021).

The “return” is the annual profit. So this means that for every HK$1 investment of its shareholder, the company generates a profit of HK$0.12.

What is the relationship between ROE and earnings growth?

So far, we have learned that ROE measures how efficiently a company generates its profits. Depending on how much of its profits the company chooses to reinvest or “keep”, we are then able to assess a company’s future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and earnings retention, the higher a company’s growth rate compared to companies that don’t necessarily exhibit these characteristics.

Earnings growth at Ever Harvest Group Holdings and ROE of 12%

For starters, Ever Harvest Group Holdings’ ROE looks acceptable. Regardless, the company’s ROE is still well below the industry average of 27%. That said, the significant five-year net profit growth of 71% reported by Ever Harvest Group Holdings is a pleasant surprise. We believe there could be other factors at play here. For example, it is possible that the management of the company has made good strategic decisions or that the company has a low payout ratio. Keep in mind that the company has a respectable ROE. It’s just that the industry’s ROE is higher. So that certainly provides some context to the strong earnings growth the company is seeing.

We then compared the growth of Ever Harvest Group Holdings net income with the industry and we are happy to see that the growth figure of the company is higher compared to the industry which has a growth rate of 44% over the same period.

SEHK: 1549 Past Earnings Growth June 15, 2022

Earnings growth is an important factor in stock valuation. What investors then need to determine is whether the expected earnings growth, or lack thereof, is already priced into the stock price. By doing so, they will get an idea if the stock is headed for clear blue waters or if swampy waters are waiting. A 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 outlook. So, you might want to check if Ever Harvest Group Holdings is trading on a high P/E or a low P/E, relative to its industry.

Does Ever Harvest Group Holdings effectively reinvest its earnings?

Ever Harvest Group Holdings does not pay any dividends to its shareholders, which means that the company has reinvested all of its profits back into the business. This is probably what explains the strong earnings growth discussed above.

Conclusion

Overall, we are quite satisfied with the performance of Ever Harvest Group Holdings. In particular, we appreciate the fact that the company reinvests heavily in its business at a moderate rate of return. Unsurprisingly, this led to impressive earnings growth. If the company continues to increase its earnings as it has, it could have a positive impact on its share price given how earnings per share influence prices over the long term. Let’s not forget that business risk is also one of the factors that affect the stock price. This is therefore also an important area for investors to pay attention to before making a decision on a company. You can see the 4 risks we have identified for Ever Harvest Group Holdings by visiting our risk dashboard for free on our platform here.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Is the market wrong on Sims Limited (ASX:SGM)? https://antochi.ro/is-the-market-wrong-on-sims-limited-asxsgm/ Sat, 11 Jun 2022 23:47:59 +0000 https://antochi.ro/is-the-market-wrong-on-sims-limited-asxsgm/ With its stock down 15% in the last three months, it’s easy to overlook The Sims (ASX:SGM). However, stock prices are usually determined by a company’s long-term finances, which in this case seem quite respectable. In this article, we decided to focus on the ROE of Sims. Return on equity or ROE is a key […]]]>

With its stock down 15% in the last three months, it’s easy to overlook The Sims (ASX:SGM). However, stock prices are usually determined by a company’s long-term finances, which in this case seem quite respectable. In this article, we decided to focus on the ROE of Sims.

Return on equity or ROE is a key metric used to gauge how effectively a company’s management is using the company’s capital. In simple terms, it is used to assess the profitability of a company in relation to its equity.

Check out our latest analysis for The Sims

How is ROE calculated?

The return on equity formula is:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, the ROE for Sims is:

19% = AU$430 million ÷ AU$2.3 billion (based on trailing 12 months to December 2021).

“Yield” is the income the business has earned over the past year. One way to conceptualize this is that for every Australian dollar of share capital it has, the company has made a profit of 0.19 Australian dollars.

Why is ROE important for earnings growth?

So far, we have learned that ROE measures how efficiently a company generates its profits. Depending on how much of those earnings the company reinvests or “keeps”, and how efficiently it does so, we are then able to gauge a company’s earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and better earnings retention are generally the ones with a higher growth rate compared to companies that don’t. same characteristics.

Sims revenue growth and 19% ROE

For starters, Sims seems to have a respectable ROE. Even when compared to the industry average of 16%, the company’s ROE looks pretty decent. Because of this, Sims’ 10% drop in net income over five years raises the question of why decent ROE hasn’t translated into growth. Based on this, we believe that there might be other reasons which have not been discussed so far in this article which might hinder the growth of the business. These include poor revenue retention or poor capital allocation.

That being said, we benchmarked Sims’ performance against the industry and were concerned when we found that while the company had cut profits, the industry had increased profits at a rate of 26% over the course of the year. same period.

past earnings-growth

Earnings growth is an important metric to consider when evaluating a stock. What investors then need to determine is whether the expected earnings growth, or lack thereof, is already priced into the stock price. By doing so, they will get an idea if the stock is headed for clear blue waters or if swampy waters are waiting. A 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 outlook. So, you might want to check if Sims is trading on a high P/E or on a low P/E, relative to its industry.

Are Sims effectively using their retained earnings?

Considering his three-year median payout rate of 34% (or a 66% retention rate), which is fairly normal, Sims’ revenue decline is rather disconcerting, as one would expect to see good growth when a company keeps a good part of its profits. It seems that there could be other reasons for the lack in this regard. For example, the business might be in decline.

Additionally, Sims has paid dividends over a period of at least ten years, which means the company’s management is committed to paying dividends even if it means little or no earnings growth. Our latest analyst data shows that the company’s future payout ratio over the next three years is expected to be around 33%. Either way, Sims’ ROE is expected to drop to 14% despite no expected change in its payout ratio.

Summary

Overall, we think The Sims definitely has some positives to consider. However, we are disappointed to see a lack of earnings growth, even despite a high ROE and high reinvestment rate. We believe that there could be external factors that could negatively impact the business. Moreover, the latest forecasts from industry analysts show that analysts expect the company’s earnings to continue to decline in the future. To learn more about the latest analyst forecasts for the company, check out this analyst forecast visualization for the company.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Elimination of the first financial bank – GuruFocus.com https://antochi.ro/elimination-of-the-first-financial-bank-gurufocus-com/ Sat, 04 Jun 2022 20:21:40 +0000 https://antochi.ro/elimination-of-the-first-financial-bank-gurufocus-com/ CINCINNATI, May 25, 2022 /PRNewswire/ — First Financial Bank (Nasdaq: FFBC) is making substantial changes to its overdraft programs to eliminate or reduce its overdraft fees, the latest in a series of steps the bank is taking to help customers and its communities to prosper and improve their financial well-being. Changes take effect June 1, […]]]>

CINCINNATI, May 25, 2022 /PRNewswire/ — First Financial Bank (Nasdaq: FFBC) is making substantial changes to its overdraft programs to eliminate or reduce its overdraft fees, the latest in a series of steps the bank is taking to help customers and its communities to prosper and improve their financial well-being. Changes take effect June 1, 2022.

“We understand that there are times in life when an interruption of income or unexpected expenses can present challenges. We want to help clients recover from these difficult times and improve their financial future, and we believe that these general overdraft fee changes can help provide that assistance,” said Archie BrownChairman and CEO of First Financial Bank.

Changes include the elimination of insufficient funds fees when an item is returned unpaid and notification fees when an account remains overdrawn. Other fees have been reduced and a full list of changes will be available from June 1 on bankatfirst.com, in all First Financial banking centers and in June client statements.

First Financial continues to offer even more options to help customers avoid fees and provide cash flow assistance. His NoWorry Checking account has no overdraft fees or minimum balance requirements. NoWorry Checking received National Bank On certification from the Cities for Financial Empowerment (CFE) Fund in 2021 for being a safe and affordable transaction account for consumers.

First Financial account holders can activate, free of charge, Dynamic Transfer, an overdraft protection feature that links each account to another checking, savings or money market account to cover any shortfall.

First Financial’s Credit Achiever Loan and Secured Credit Card allows customers to make purchases from pre-funded accounts so customers can improve their credit scores.

For more information on these and other financial solutions, visit www.bankatfirst.com.

About First Financial Bancorp.
First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. From March 31, 2022the company had $16.0 billion in assets, $9.2 billion in loans, $12.8 billion in depots and $2.1 billion in equity. The Company’s subsidiary, First Financial Bank, founded in 1863, offers banking and financial services products through its six business segments: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and WealthManagement. These business units provide traditional banking services to businesses and individuals. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and pension plan services and had approximately $3.3 billion of assets under management at March 31, 2022. The Company operated 135 full-service banking centers in March 31, 2022mainly in Ohio, Indiana, Kentucky and Illinois, while the Commercial Finance business lends to targeted industry sectors nationwide. Additional information about the Company, including its products, services and banking facilities, is available at www.bankatfirst.com.

favicon.png?sn=CL69475&sd=2022-05-25 View original content to download multimedia: https://www.prnewswire.com/news-releases/first-financial-bank-eliminates-and-reduces-overdraft-fees-301555248.html

SOURCE First Financial Bancorp.

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Does Dolby Laboratories, Inc.’s (NYSE:DLB) recent performance have anything to do with its financial health? https://antochi.ro/does-dolby-laboratories-inc-s-nysedlb-recent-performance-have-anything-to-do-with-its-financial-health/ Thu, 02 Jun 2022 16:14:01 +0000 https://antochi.ro/does-dolby-laboratories-inc-s-nysedlb-recent-performance-have-anything-to-do-with-its-financial-health/ Most readers will already know that shares of Dolby Laboratories (NYSE:DLB) are up 5.0% over the past three months. As most know, long-term fundamentals have a strong correlation with market price movements, so we decided to take a look at key business financial indicators today to see if they have a role to play. play […]]]>

Most readers will already know that shares of Dolby Laboratories (NYSE:DLB) are up 5.0% over the past three months. As most know, long-term fundamentals have a strong correlation with market price movements, so we decided to take a look at key business financial indicators today to see if they have a role to play. play in the recent price movement. Specifically, we decided to study the ROE of Dolby Laboratories in this article.

Return on equity or ROE is an important factor for a shareholder to consider as it tells them how much of their capital is being reinvested. In other words, it reveals the company’s success in turning shareholders’ investments into profits.

See our latest analysis for Dolby Laboratories

How to calculate return on equity?

ROE can be calculated using the formula:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, the ROE for Dolby Laboratories is:

8.3% = $215 million ÷ $2.6 billion (based on trailing 12 months to April 2022).

“Yield” refers to a company’s earnings over the past year. One way to conceptualize this is that for every $1 of share capital it has, the firm has made a profit of $0.08.

Why is ROE important for earnings growth?

So far, we have learned that ROE measures how efficiently a company generates its profits. Depending on how much of its profits the company chooses to reinvest or “keep”, we are then able to assess a company’s future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and better earnings retention are generally the ones with a higher growth rate compared to companies that don’t. same characteristics.

Dolby Laboratories earnings growth and ROE of 8.3%

At first glance, Dolby Laboratories’ ROE isn’t much to tell. A quick closer look shows that the company’s ROE also doesn’t compare favorably to the industry average of 12%. However, the moderate 16% net income growth observed by Dolby Laboratories over the past five years is definitely positive. Thus, the company’s earnings growth could likely have been caused by other variables. Such as – high revenue retention or effective management in place.

We then compared Dolby Laboratories’ net income growth with the industry and found that the company’s growth figure is below the industry average growth rate of 27% over the same period, which which is a little worrying.

NYSE: DLB Past Earnings Growth June 2, 2022

The basis for attaching value to a company is, to a large extent, linked to the growth of its profits. The investor should try to establish whether the expected growth or decline in earnings, as the case may be, is taken into account. By doing so, he will get an idea if the title is heading for clear blue waters or if swampy waters await. Has the market priced in DLB’s future prospects? You can find out in our latest infographic research report on intrinsic value.

Does Dolby Laboratories effectively reinvest its profits?

Dolby Laboratories has a healthy combination of a moderate three-year median payout ratio of 34% (or a retention rate of 66%) and respectable earnings growth, as we saw above, this which means that the company has made efficient use of its profits.

Additionally, Dolby Laboratories is committed to continuing to share its profits with shareholders, which we infer from its eight-year long history of paying dividends. Existing analyst estimates suggest the company’s future payout ratio is expected to drop to 24% over the next three years. Thus, the expected decline in the payout rate explains the expected increase in the company’s ROE to 17%, over the same period.

Conclusion

All in all, it seems that Dolby Laboratories has positive aspects for its business. In other words, decent earnings growth supported by a high rate of reinvestment. However, we believe that this earnings growth could have been higher if the company were to improve the low ROE rate. Especially considering how the company reinvests a huge portion of its profits. That said, the latest forecasts from industry analysts show that the company’s earnings are set to accelerate. Are these analyst expectations based on general industry expectations or company fundamentals? Click here to access our analyst forecast page for the company.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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The fundamentals of RBR Group Limited (ASX:RBR) look quite solid: could the market be wrong about the stock? https://antochi.ro/the-fundamentals-of-rbr-group-limited-asxrbr-look-quite-solid-could-the-market-be-wrong-about-the-stock/ Tue, 31 May 2022 23:53:38 +0000 https://antochi.ro/the-fundamentals-of-rbr-group-limited-asxrbr-look-quite-solid-could-the-market-be-wrong-about-the-stock/ RBR Group (ASX:RBR) had a tough three months with its share price down 40%. However, stock prices are usually determined by a company’s long-term finances, which in this case seem quite respectable. In this article, we have decided to focus on RBR Group’s ROE. ROE or return on equity is a useful tool for evaluating […]]]>

RBR Group (ASX:RBR) had a tough three months with its share price down 40%. However, stock prices are usually determined by a company’s long-term finances, which in this case seem quite respectable. In this article, we have decided to focus on RBR Group’s ROE.

ROE or return on equity is a useful tool for evaluating how effectively a company can generate returns on the investment it has received from its shareholders. In other words, it is a profitability ratio that measures the rate of return on capital contributed by the company’s shareholders.

See our latest analysis for RBR Group

How do you calculate return on equity?

ROE can be calculated using the formula:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, the ROE for RBR Group is:

74% = AU$3.6m ÷ AU$4.9m (based on trailing 12 months to December 2021).

The “return” is the annual profit. This therefore means that for every A$1 of investment by its shareholder, the company generates a profit of A$0.74.

What is the relationship between ROE and earnings growth?

We have already established that ROE serves as an effective earnings-generating indicator for a company’s future earnings. We now need to assess how much profit the company is reinvesting or “retaining” for future growth, which then gives us an idea of ​​the company’s growth potential. Generally speaking, all things being equal, companies with high return on equity and earnings retention have a higher growth rate than companies that do not share these attributes.

A side-by-side comparison of RBR Group’s earnings growth and ROE of 74%

First, we recognize that RBR Group has a significantly high ROE. Second, even when compared to the industry average of 16%, the company’s ROE is quite impressive. However, for some reason, the higher returns are not reflected in RBR Group’s low five-year average net income growth of 2.5%. This is interesting because the high returns should mean that the company has the capacity to generate strong growth, but for some reason it has not been able to do so. We believe that low growth, when returns are high enough, may be the result of certain circumstances such as low earnings retention or poor capital allocation.

Then, when comparing with the sector’s net income growth, we found that the reported growth of the RBR Group was lower than the sector’s growth of 26% over the same period, which we don’t like to see.

ASX: RBR Past Earnings Growth May 31, 2022

The basis for attaching value to a company is, to a large extent, linked to the growth of its profits. The investor should try to establish whether the expected growth or decline in earnings, as the case may be, is taken into account. This will help him determine if the future of the stock looks bright or ominous. If you’re wondering about RBR Group’s valuation, check out this indicator of its price/earnings ratio, relative to its sector.

Does the RBR group effectively reinvest its profits?

RBR Group does not pay any dividends, which means that potentially all of its profits are reinvested in the company. However, there has been very little earnings growth for this. So there could be other factors at play here that could potentially impede growth. For example, the company had to deal with headwinds.

Summary

Overall, we think RBR Group certainly has some positive factors to consider. Still, the weak earnings growth is a bit of a concern, especially since the company has a high rate of return and reinvests a huge portion of its earnings. At first glance, there could be other factors, which do not necessarily control the business, that are preventing growth. While we wouldn’t completely dismiss the business, what we would do is try to figure out how risky the business is to make a more informed decision about the business. To find out about the 4 risks we have identified for RBR Group, visit our risk dashboard for free.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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RHB Bank reports net profit of RM600.27 million in first quarter https://antochi.ro/rhb-bank-reports-net-profit-of-rm600-27-million-in-first-quarter/ Mon, 30 May 2022 06:20:00 +0000 https://antochi.ro/rhb-bank-reports-net-profit-of-rm600-27-million-in-first-quarter/ KUALA LUMPUR: RHB Bank Bhd’s net profit for the first quarter ended March 31, 2022 fell by 7.69% to RM600.27 million from RM650.29 million in the prior year quarter. The bank recorded revenue of RM2.86 billion, down 16.15% from the comparative quarter. In a statement, the bank acknowledged the difficult business environment, but pointed to […]]]>

KUALA LUMPUR: RHB Bank Bhd’s net profit for the first quarter ended March 31, 2022 fell by 7.69% to RM600.27 million from RM650.29 million in the prior year quarter.

The bank recorded revenue of RM2.86 billion, down 16.15% from the comparative quarter.

In a statement, the bank acknowledged the difficult business environment, but pointed to its strong capital ratio and liquidity levels.

“Going forward, we will remain cautious in managing the business and focus on driving responsible growth, as well as managing the quality of our assets.

“We will also continue to provide appropriate assistance to our customers who remain impacted by the Covid-19 pandemic,” said Mohd Rashid Mohamad, Managing Director and CEO of RHB Banking Group.

As of 1QFY22, RHB’s fund-based net income improved to RM1.47 billion, while fund-based gross income increased by 2.7% on loan growth of 7%.

Net interest margin for the quarter was 2.11%, compared to 2.17% in the same quarter in 2021.

Meanwhile, non-fund based revenue decreased to RM432.7 million, mainly due to lower fee income and net trading and investment income, offset by an underwriting surplus of higher insurance.

Operating expenses decreased to RM859.1mil.

With a positive JAWS, the cost/income ratio improved to 45.1% from 46% a year ago.

Expected Credit Losses (ECLs) were reduced to RM153.8 million due to lower ECLs on loans.

As a result, the annualized credit expense ratio improved to 0.29% compared to 0.39% for the same quarter last year.

At the end of March 2022, the group’s total assets increased by 2.8% to RM297.6 billion compared to December 2021, while shareholders’ equity stood at RM28.1 billion.

The Common Equity Tier-1 (CET-1) ratio and the group’s total capital ratio amount to 16.8% and 19.4% respectively.

The group’s gross loans and financings increased by 1.4% year-to-date to RM201.3 billion, mainly supported by growth in mortgages, SMEs and Singapore.

Domestic loans and financing have increased by 1% since the beginning of the year.

Gross impaired loans were RM3 billion with a gross impaired loan ratio of 1.5% compared to 1.49% in December 2021.

The loan loss coverage ratio excluding regulatory reserves increased to 125.7% at the end of March 2022 from 122.4% in December 2021.

Customer deposits increased by 3.6% year-to-date to RM226.5 billion, mainly due to growth of 5.1% in fixed term and money market deposits.

The composition of the savings account in current account (Casa) amounts to 29% as of March 31, 2022.

The Liquidity Coverage Ratio (LCR) remained strong at 144.8%.

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Jinchuan Group International Resources Co. Ltd (HKG:2362) shares fell, but fundamentals look solid: is the market wrong? https://antochi.ro/jinchuan-group-international-resources-co-ltd-hkg2362-shares-fell-but-fundamentals-look-solid-is-the-market-wrong/ Sat, 28 May 2022 00:19:32 +0000 https://antochi.ro/jinchuan-group-international-resources-co-ltd-hkg2362-shares-fell-but-fundamentals-look-solid-is-the-market-wrong/ With its stock down 40% in the past three months, it’s easy to overlook Jinchuan Group International Resources (HKG: 2362). However, a closer look at his sound finances might make you think again. Since fundamentals generally determine long-term market outcomes, the company is worth looking into. In particular, we will pay attention to the ROE […]]]>

With its stock down 40% in the past three months, it’s easy to overlook Jinchuan Group International Resources (HKG: 2362). However, a closer look at his sound finances might make you think again. Since fundamentals generally determine long-term market outcomes, the company is worth looking into. In particular, we will pay attention to the ROE of Jinchuan Group International Resources today.

Return on equity or ROE is a key metric used to gauge how effectively a company’s management is using the company’s capital. In other words, it is a profitability ratio that measures the rate of return on capital contributed by the company’s shareholders.

Check out our latest analysis for Jinchuan Group International Resources

How is ROE calculated?

The ROE formula is:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, the ROE for Jinchuan Group International Resources is:

14% = $162 million ÷ $1.2 billion (based on trailing 12 months to December 2021).

“Yield” is the income the business has earned over the past year. This means that for every HK$1 of equity, the company generated HK$0.14 of profit.

What does ROE have to do with earnings growth?

We have already established that ROE serves as an effective profit-generating indicator for a company’s future earnings. Depending on how much of those earnings the company reinvests or “keeps”, and how efficiently it does so, we are then able to gauge a company’s earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and better earnings retention are generally the ones with a higher growth rate compared to companies that don’t. same characteristics.

Profit growth and ROE of 14% of Jinchuan Group International Resources

At first glance, Jinchuan Group International Resources appears to have a decent ROE. And comparing with the industry, we found that the industry average ROE is similar at 12%. This certainly adds some context to Jinchuan Group International Resources’ moderate 16% net profit growth seen over the past five years.

We then compared Jinchuan Group International Resources’ net income growth with the industry and found that the company’s growth figure is lower than the industry average growth rate of 24% over the same period. , which is a little worrying.

SEHK: 2362 Past Earnings Growth May 28, 2022

Earnings growth is an important metric to consider when evaluating a stock. It is important for an investor to know whether the market has priced in the expected growth (or decline) in the company’s earnings. By doing so, they will get an idea if the stock is headed for clear blue waters or if swampy waters are waiting. If you’re wondering about the valuation of Jinchuan Group International Resources, check out this indicator of its price/earnings ratio, relative to its sector.

Does Jinchuan Group International Resources use its profits effectively?

In the case of Jinchuan Group International Resources, its respectable earnings growth is likely due to its low three-year median payout ratio of 2.7% (or a retention rate of 97%), suggesting that the he company invests most of its profits in developing its business.

Additionally, Jinchuan Group International Resources is committed to continuing to share its profits with shareholders, which we infer from its long three-year history of paying dividends.

Summary

Overall, we believe that the performance of Jinchuan Group International Resources has been quite good. In particular, it is good to see that the company is investing heavily in its business and, along with a high rate of return, this has led to respectable growth in its profits. That said, the latest forecasts from industry analysts show that the company’s earnings are set to accelerate. For more on the company’s future earnings growth forecast, check out this free analyst forecast report for the company to learn more.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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R&Q shareholders reject acquisition, capital increase continues https://antochi.ro/rq-shareholders-reject-acquisition-capital-increase-continues/ Thu, 26 May 2022 08:01:14 +0000 https://antochi.ro/rq-shareholders-reject-acquisition-capital-increase-continues/ Randall & Quilter Investment Holdings Ltd (R&Q) shareholders again rejected an acquisition of the company by Brickell PC Insurance Holdings LLC, which is backed by 777 Partners, but instead approved plans to focus on a capital raise over $100 million. R&Q failed to secure shareholder approval for the acquisition at a first special general meeting […]]]>

Randall & Quilter Investment Holdings Ltd (R&Q) shareholders again rejected an acquisition of the company by Brickell PC Insurance Holdings LLC, which is backed by 777 Partners, but instead approved plans to focus on a capital raise over $100 million.

R&Q failed to secure shareholder approval for the acquisition at a first special general meeting (SGM) last week, but had hoped to pass the necessary resolutions at a further meeting yesterday after securing a additional investor support.

However, his plans were scuttled when Brickell delivered a letter declaring termination of the agreement just a day before the vote, alleging that R&Q had breached certain obligations under the implementation agreement related to the proposed transaction.

The deal, which was announced in early April, valued R&Q’s existing issued share capital at around £482m, and Brickell also offered to invest $100m of new equity into R&Q as part of the deal. ‘arrangement.

As the transaction will not proceed, R&Q says it is instead focused on plans to raise approximately $100 million through a placement and up to $8 million through an open funding offering, which has garnered ” strong interest” from shareholders after a short market sounding process.

The capital increase will include a placement of shares to institutional shareholders and an open offering to existing eligible shareholders, of which $60 million of the proceeds will be used to fund collateral requirements and the balance to repay debt.

For its part, R&Q maintains that the vote against the resolutions necessary for its acquisition by Brickell “demonstrates the confidence of certain shareholders of the Company in the future value and prospects of the company and the support for a capital increase”.

But market prices suggest confidence in R&Q has been shaken, as its share price fell 42% yesterday after Brickell’s public announcement of its intention to terminate the deal, and only recovered by 6% at the time of writing, following the announcement of the capital increase strategy reversal.

Commenting on the last shareholders’ meeting, William Spiegel, Executive Chairman of R&Q, said: “Following the outcome of today’s vote, we will be focusing on fundraising. Having prepared this as an option when we initially engaged with shareholders, we are well positioned to launch this shortly. »

“Throughout this process, our priority has always been to deliver the best outcome to shareholders and the voting outcome demonstrated the long-term value that investors see in the business. We continue to have great confidence in R&Q’s future outlook and expect more than $90 million in pretax operating income in 2024. We look forward to engaging with our shareholders in the fundraising.

Alastair Campbell, Non-Executive Director and Independent Lead Director of R&Q, commenting on behalf of the Board, added:
“Following further engagement with our shareholders, our priority is now to obtain the financing necessary to deleverage our balance sheet and improve our financial profile. Since becoming Executive Chairman just over twelve months ago, William, alongside his new management team, has set out a compelling new strategy and driven significant positive change at R&Q, improving its culture, management risk and its governance. We look forward to engaging with our shareholders as we raise funds. »

The placement is expected to launch on June 13, 2022 following the release of R&Q’s 2021 annual results, and the company plans to offer up to 10% of its issued share capital on a firm basis, with additional common shares being conditionally offered. upon shareholder approval at a special general meeting on July 11, 2022.

Qualified shareholders will then have the opportunity to subscribe for common shares under the open offering at the same offering price as the placement up to a total value of $8 million, with the open offering to be launched on 15 June.

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