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- Yahoo
Koninklijke Heijmans' (AMS:HEIJM) Performance Is Even Better Than Its Earnings Suggest
Koninklijke Heijmans N.V.'s (AMS:HEIJM) earnings announcement last week was disappointing for investors, despite the decent profit numbers. We did some digging and actually think they are being unnecessarily pessimistic. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Examining Cashflow Against Koninklijke Heijmans' Earnings One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. The ratio shows us how much a company's profit exceeds its FCF. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking. Koninklijke Heijmans has an accrual ratio of -0.21 for the year to June 2025. That indicates that its free cash flow quite significantly exceeded its statutory profit. In fact, it had free cash flow of €199m in the last year, which was a lot more than its statutory profit of €112.0m. Koninklijke Heijmans' free cash flow improved over the last year, which is generally good to see. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Our Take On Koninklijke Heijmans' Profit Performance As we discussed above, Koninklijke Heijmans' accrual ratio indicates strong conversion of profit to free cash flow, which is a positive for the company. Based on this observation, we consider it possible that Koninklijke Heijmans' statutory profit actually understates its earnings potential! And the EPS is up 28% annually, over the last three years. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. If you'd like to know more about Koninklijke Heijmans as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 1 warning sign for Koninklijke Heijmans you should be aware of. This note has only looked at a single factor that sheds light on the nature of Koninklijke Heijmans' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. 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
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Stanford hires former Nike CEO John Donahoe as athletic director, AP source says
STANFORD, Calif. (AP) — Former Nike CEO John Donahoe has been hired as athletic director at Stanford. A person familiar with the decision said Donahoe will become the school's eighth athletic director and replace Bernard Muir, who stepped down this year. The person spoke on condition of anonymity because the hiring hadn't been announced. ESPN first reported the move. Donahoe graduated from Stanford Business School and has worked at companies like Nike, Bain & Company and eBay in his career. He was CEO at Nike from 2020-24. He takes over one of the countries most successful athletic programs with Stanford having won at least one NCAA title in 49 straight years starting in 1976-77 and a record 137 NCAA team titles overall. But the Cardinal struggled in the high-profile sports of football and men's basketball under Muir's tenure, leading to the decision to hire former Stanford and NFL star Andrew Luck to oversee the football program as its general manager. The Cardinal are looking to rebound in football after going to three Rose Bowls under former coach David Shaw in Muir's first four years as AD. Shaw resigned in 2022 following a second straight 3-9 season and Muir's hire, Troy Taylor, has posted back-to-back 3-9 seasons. The men's basketball program hasn't made the NCAA Tournament since Muir's second season in 2013-14 under former coach Johnny Dawkins. Dawkins was fired in 2016 and replaced by Jerod Haase, who failed to make the tournament once in eight years. Muir hired Kyle Smith last March to take over and the Cardinal went 21-14 for their most wins in 10 years. Muir also hired Kate Paye as women's basketball coach last year after Hall of Famer Tara VanDerveer retired. The Cardinal went 16-15 this past season and in missed the NCAA Tournament for the first time since 1987. Muir also oversaw the Cardinal's transition to the ACC this past year after the school's long-term home, the Pac-12, broke apart. ___ AP college sports:
Yahoo
12 minutes ago
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Slow US job gains expected in July; unemployment rate forecast rising to 4.2%
By Lucia Mutikani WASHINGTON (Reuters) -U.S. job growth likely slowed in July, with the unemployment rate forecast rising back to 4.2%, but that probably would be insufficient to spur the Federal Reserve to resume cutting interest rates soon as tariffs are starting to fan inflation. The anticipated slowdown in nonfarm payrolls in the Labor Department's closely watched employment report on Friday would mostly be payback after a surprise surge in state and local government education boosted employment gains in June. The U.S. central bank on Wednesday left its benchmark interest rate in the 4.25%-4.50% range. Fed Chair Jerome Powell's comments after the decision undercut confidence the central bank would resume policy easing in September as had been widely anticipated by financial markets and some economists. Though Powell described the labor market as being in balance because of supply and demand both declining at the same time, he acknowledged that this dynamic was "suggestive of downside risk." Job growth has slowed amid uncertainty over where President Donald Trump's tariff levels will eventually settle. Trump on Thursday slapped dozens of trading partners with steep tariffs ahead of a Friday trade deal deadline, including a 35% duty on many goods from Canada. The White House's immigration crackdown has reduced labor supply as has an acceleration of baby boomer retirements. "We just don't have a roadmap yet with respect to tariffs, and now that it's coming into place, I think that can certainly help, but if you're thinking about what you're planning for your business over the next two to three years ... you don't want to make that decision until you know what your costs of running your business are going to be," said Michael Reid, senior U.S. economist at RBC Capital Markets. Nonfarm payrolls likely increased by 110,000 jobs last month after rising by 147,000 in June, a Reuters survey of economists showed. That reading would be below the three-month average gain of 150,000. Estimates ranged from no jobs added to an increase of 176,000 positions. An economist predicting no change in payrolls pointed to the jump in state and local government education jobs in June, which accounted for nearly half of the employment gains that month. "When the academic year ends, there is a huge drop in payroll levels at schools," said Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets. "The fact that there were fewer reductions than usual in June suggests to me that more of the usual wave of reductions came in July." Stanley also argued that there had been a torrent of anecdotal and survey evidence suggesting that businesses large and small slowed their hiring activity this summer in the face of elevated policy uncertainty. This led Stanley to anticipate private sector payrolls growth slowed further in July rather than accelerated as most economists expected after the economy added the fewest jobs in eight months in June. LOW BREAK-EVEN NUMBER Federal government job losses as the Trump administration wields the axe on headcount and spending, excluding immigration enforcement, could mount after the Supreme Court gave the White House the green light for mass firings. But the administration has also said several agencies were not planning to proceed with layoffs. The reduction in immigration flows means the economy now needs to create roughly 100,000 jobs per month or less to keep up with growth in the working age population. The decline in the unemployment rate to 4.1% in June was in part due to people dropping out of the labor force. July's anticipated rise would still leave the jobless rate in the narrow 4.0%-4.2% range that has prevailed since May 2024. "The July jobs report is unlikely to shake the Fed out of its 'wait-and-see' posture," said Gregory Daco, chief economist at EY-Parthenon. "But it will add further evidence that the labor market is gradually losing momentum." Financial markets have pushed back an anticipated September rate cut to October. With tariffs starting to raise inflation, some economists believe the window for the Fed resuming policy easing this year is closing. But others still believe the Fed could still cut rates in September, especially if the Bureau of Labor Statistics' preliminary payrolls benchmark revision in September projects a sharp decline in the employment level from April 2024 through March this year. The Quarterly Census of Employment and Wages, derived from reports by employers to the state unemployment insurance programs, has indicated a much slower pace of job growth between April 2024 and December 2024 than payrolls have suggested. "If it's an ugly downward revision, the Fed will move, there is no question," said Brian Bethune, an economics professor at Boston College.
