logo
Greece's Painful Decade of Rehabilitation Rewards the Believers

Greece's Painful Decade of Rehabilitation Rewards the Believers

Bloomberg2 days ago
In late September 2015, Canadian investor Prem Watsa gathered 75 or so employees and their spouses at Costa Navarino, a luxurious seaside resort in the Peloponnese, to mark his company's 30th anniversary.
Greece was perhaps a peculiar choice to fly people in for a celebration. The country had just spent eight months in the global spotlight as a tense standoff with its creditors had pushed it to the brink of a potentially chaotic default and exit from Europe's currency union, the euro. But that year alone, Watsa's firm, Fairfax Financial Holdings, had increased its positions.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Why We Like The Returns At XRF Scientific (ASX:XRF)
Why We Like The Returns At XRF Scientific (ASX:XRF)

Yahoo

time2 hours ago

  • Yahoo

Why We Like The Returns At XRF Scientific (ASX:XRF)

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. With that in mind, the ROCE of XRF Scientific (ASX:XRF) looks great, so lets see what the trend can tell us. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for XRF Scientific, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.25 = AU$14m ÷ (AU$66m - AU$9.6m) (Based on the trailing twelve months to December 2024). Therefore, XRF Scientific has an ROCE of 25%. In absolute terms that's a great return and it's even better than the Machinery industry average of 13%. View our latest analysis for XRF Scientific Above you can see how the current ROCE for XRF Scientific compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering XRF Scientific for free. XRF Scientific is displaying some positive trends. The data shows that returns on capital have increased substantially over the last five years to 25%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 56%. So we're very much inspired by what we're seeing at XRF Scientific thanks to its ability to profitably reinvest capital. In summary, it's great to see that XRF Scientific can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. Since the stock has returned a staggering 746% to shareholders over the last five years, it looks like investors are recognizing these changes. In light of that, we think it's worth looking further into this stock because if XRF Scientific can keep these trends up, it could have a bright future ahead. While XRF Scientific looks impressive, no company is worth an infinite price. The intrinsic value infographic for XRF helps visualize whether it is currently trading for a fair price. If you'd like to see other companies earning high returns, check out our free list of companies earning high returns with solid balance sheets here. 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

2 Profitable Stocks with Exciting Potential and 1 to Turn Down
2 Profitable Stocks with Exciting Potential and 1 to Turn Down

Yahoo

time2 hours ago

  • Yahoo

2 Profitable Stocks with Exciting Potential and 1 to Turn Down

Even if a company is profitable, it doesn't always mean it's a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential. Profits are valuable, but they're not everything. At StockStory, we help you identify the companies that have real staying power. That said, here are two profitable companies that generate reliable profits without sacrificing growth and one that may struggle to keep up. Trailing 12-Month GAAP Operating Margin: 3.3% A public company since early 2020, OneWater Marine (NASDAQ:ONEW) sells boats, yachts, and other marine products. Why Are We Hesitant About ONEW? Poor same-store sales performance over the past two years indicates it's having trouble bringing new shoppers into its brick-and-mortar locations Falling earnings per share over the last four years has some investors worried as stock prices ultimately follow EPS over the long term 7× net-debt-to-EBITDA ratio shows it's overleveraged and increases the probability of shareholder dilution if things turn unexpectedly OneWater is trading at $14.66 per share, or 8.1x forward P/E. If you're considering ONEW for your portfolio, see our FREE research report to learn more. Trailing 12-Month GAAP Operating Margin: 22% Founded in 1957, HEICO (NYSE:HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries. Why Will HEI Outperform? Average organic revenue growth of 9.6% over the past two years demonstrates its ability to expand independently without relying on acquisitions Earnings growth has trumped its peers over the last two years as its EPS has compounded at 25.2% annually HEI is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders At $324.67 per share, HEICO trades at 69.8x forward P/E. Is now a good time to buy? Find out in our full research report, it's free. Trailing 12-Month GAAP Operating Margin: 9.7% With around a century of experience, Blue Bird (NASDAQ:BLBD) is a manufacturer of school buses and complementary parts. Why Do We Love BLBD? Market share has increased this cycle as its 16.5% annual revenue growth over the last two years was exceptional Additional sales over the last two years increased its profitability as the 156% annual growth in its earnings per share outpaced its revenue Returns on capital are climbing as management makes more lucrative bets Blue Bird's stock price of $45.50 implies a valuation ratio of 10.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it's free. 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 9 Market-Beating Stocks. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today Sign in to access your portfolio

If EPS Growth Is Important To You, Objective (ASX:OCL) Presents An Opportunity
If EPS Growth Is Important To You, Objective (ASX:OCL) Presents An Opportunity

Yahoo

time3 hours ago

  • Yahoo

If EPS Growth Is Important To You, Objective (ASX:OCL) Presents An Opportunity

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Objective (ASX:OCL). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. That means EPS growth is considered a real positive by most successful long-term investors. It certainly is nice to see that Objective has managed to grow EPS by 21% per year over three years. So it's not surprising to see the company trades on a very high multiple of (past) earnings. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. The music to the ears of Objective shareholders is that EBIT margins have grown from 28% to 32% in the last 12 months and revenues are on an upwards trend as well. That's great to see, on both counts. The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers. See our latest analysis for Objective In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Objective's forecast profits? Prior to investment, it's always a good idea to check that the management team is paid reasonably. Pay levels around or below the median, can be a sign that shareholder interests are well considered. The median total compensation for CEOs of companies similar in size to Objective, with market caps between AU$611m and AU$2.4b, is around AU$1.7m. The Objective CEO received total compensation of just AU$215k in the year to June 2024. First impressions seem to indicate a compensation policy that is favourable to shareholders. While the level of CEO compensation shouldn't be the biggest factor in how the company is viewed, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of a culture of integrity, in a broader sense. If you believe that share price follows earnings per share you should definitely be delving further into Objective's strong EPS growth. Strong EPS growth is a great look for the company and reasonable CEO compensation sweetens the deal for investors ass it alludes to management being conscious of frivolous spending. We think that based on its merits alone, this stock is worth watching into the future. Of course, profit growth is one thing but it's even better if Objective is receiving high returns on equity, since that should imply it can keep growing without much need for capital. Click on this link to see how it is faring against the average in its industry. While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in AU with promising growth potential and insider confidence. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store