
RBA Seen Cutting Three More Times by Early 2026, Matching Market
The Reserve Bank will take its cash rate to 3.1% in the first quarter of 2026, from 3.85% now, and then pause for a prolonged period, according to the median estimate of 40 economists in a Bloomberg survey released Wednesday.
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Fenix Resources (ASX:FEX) delivers shareholders massive 47% CAGR over 5 years, surging 10% in the last week alone
For many, the main point of investing in the stock market is to achieve spectacular returns. While not every stock performs well, when investors win, they can win big. To wit, the Fenix Resources Limited (ASX:FEX) share price has soared 344% over five years. If that doesn't get you thinking about long term investing, we don't know what will. It's also up 14% in about a month. Since the stock has added AU$22m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns. 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. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During the five years of share price growth, Fenix Resources moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here. What About The Total Shareholder Return (TSR)? We'd be remiss not to mention the difference between Fenix Resources' total shareholder return (TSR) and its share price return. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Its history of dividend payouts mean that Fenix Resources' TSR of 586% over the last 5 years is better than the share price return. A Different Perspective While the broader market gained around 13% in the last year, Fenix Resources shareholders lost 16%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 47%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Fenix Resources better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Fenix Resources , and understanding them should be part of your investment process. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian 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. 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
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Is GenusPlus Group Ltd's (ASX:GNP) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?
GenusPlus Group (ASX:GNP) has had a great run on the share market with its stock up by a significant 60% over the last three months. Since the market usually pay for a company's long-term fundamentals, we decided to study the company's key performance indicators to see if they could be influencing the market. Particularly, we will be paying attention to GenusPlus Group's ROE today. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Put another way, it reveals the company's success at turning shareholder investments into profits. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. How Do You Calculate Return On Equity? The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for GenusPlus Group is: 17% = AU$24m ÷ AU$137m (Based on the trailing twelve months to December 2024). The 'return' refers to a company's earnings over the last year. One way to conceptualize this is that for each A$1 of shareholders' capital it has, the company made A$0.17 in profit. Check out our latest analysis for GenusPlus Group What Is The Relationship Between ROE And Earnings Growth? We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. A Side By Side comparison of GenusPlus Group's Earnings Growth And 17% ROE To begin with, GenusPlus Group seems to have a respectable ROE. Even when compared to the industry average of 15% the company's ROE looks quite decent. This certainly adds some context to GenusPlus Group's moderate 15% net income growth seen over the past five years. As a next step, we compared GenusPlus Group's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 26% in the same period. Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. Is GenusPlus Group fairly valued compared to other companies? These 3 valuation measures might help you decide. Is GenusPlus Group Efficiently Re-investing Its Profits? GenusPlus Group's three-year median payout ratio to shareholders is 22% (implying that it retains 78% of its income), which is on the lower side, so it seems like the management is reinvesting profits heavily to grow its business. Additionally, GenusPlus Group has paid dividends over a period of four years which means that the company is pretty serious about sharing its profits with shareholders. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 21% of its profits over the next three years. However, GenusPlus Group's ROE is predicted to rise to 23% despite there being no anticipated change in its payout ratio. Conclusion Overall, we are quite pleased with GenusPlus Group's performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see a good amount of growth in its earnings. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. 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.

Wall Street Journal
6 minutes ago
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Macquarie Group's Profit Falls on Asset Management, Commodities
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