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an hour ago
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U.K. insurer Just Group stock skyrockets on Brookfield acquisition deal
-- Just Group PLC (LON:JUSTJ) stock soared 67.9% on Thursday after the company announced it has reached an agreement to be acquired by a subsidiary of Brookfield Wealth Solutions Ltd for 220p per share. The acquisition price represents a 75% premium to Just Group's closing price yesterday, significantly exceeding the company's all-time high from April 2016. The deal values Just Group at approximately 1.1 times its FY 2024 Unrestricted Tier 1 capital (less final dividend), comparable to the multiple recently paid by Athora for PIC. According to the terms of the agreement, the acquisition is expected to complete during the first half of 2025. The acquirer reserves the right to reduce the consideration if any dividends or other capital returns are announced or paid before the deal closes. The acquisition will likely be implemented through a court-sanctioned scheme of arrangement, though Brookfield reserves the right to proceed via a Takeover Offer with necessary approvals. Jefferies analysts noted that Just Group's shareholders are unlikely to achieve better value from either another strategic buyer or as a separately listed company in the short-to-medium term. "Thus, as the bid premium appears to offer very attractive upside, and has already received the support of management, we believe that investors should similarly support the deal," according to Jefferies analysts. The deal has already secured management support, suggesting a smooth path to completion, though regulatory approvals will still be required. Related articles U.K. insurer Just Group stock skyrockets on Brookfield acquisition deal Victoria's Secret Exposed: The Warning Sign Behind the Stock's 52% Collapse Surge of 50% since our AI selection, this chip giant still has great potential 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
4 days ago
- Business
- Yahoo
There Are Reasons To Feel Uneasy About Mincon Group's (LON:MCON) Returns On Capital
There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. However, after investigating Mincon Group (LON:MCON), we don't think it's current trends fit the mold of a multi-bagger. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Understanding Return On Capital Employed (ROCE) 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 Mincon Group, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.042 = €7.6m ÷ (€211m - €32m) (Based on the trailing twelve months to December 2024). So, Mincon Group has an ROCE of 4.2%. Ultimately, that's a low return and it under-performs the Machinery industry average of 14%. Check out our latest analysis for Mincon Group In the above chart we have measured Mincon Group's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Mincon Group for free. What Does the ROCE Trend For Mincon Group Tell Us? On the surface, the trend of ROCE at Mincon Group doesn't inspire confidence. Around five years ago the returns on capital were 10%, but since then they've fallen to 4.2%. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line. The Bottom Line On Mincon Group's ROCE To conclude, we've found that Mincon Group is reinvesting in the business, but returns have been falling. Since the stock has declined 53% over the last five years, investors may not be too optimistic on this trend improving either. Therefore based on the analysis done in this article, we don't think Mincon Group has the makings of a multi-bagger. One more thing to note, we've identified 3 warning signs with Mincon Group and understanding these should be part of your investment process. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. 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. Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
Yahoo
4 days ago
- Business
- Yahoo
There Are Reasons To Feel Uneasy About Mincon Group's (LON:MCON) Returns On Capital
There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. However, after investigating Mincon Group (LON:MCON), we don't think it's current trends fit the mold of a multi-bagger. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Understanding Return On Capital Employed (ROCE) 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 Mincon Group, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.042 = €7.6m ÷ (€211m - €32m) (Based on the trailing twelve months to December 2024). So, Mincon Group has an ROCE of 4.2%. Ultimately, that's a low return and it under-performs the Machinery industry average of 14%. Check out our latest analysis for Mincon Group In the above chart we have measured Mincon Group's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Mincon Group for free. What Does the ROCE Trend For Mincon Group Tell Us? On the surface, the trend of ROCE at Mincon Group doesn't inspire confidence. Around five years ago the returns on capital were 10%, but since then they've fallen to 4.2%. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line. The Bottom Line On Mincon Group's ROCE To conclude, we've found that Mincon Group is reinvesting in the business, but returns have been falling. Since the stock has declined 53% over the last five years, investors may not be too optimistic on this trend improving either. Therefore based on the analysis done in this article, we don't think Mincon Group has the makings of a multi-bagger. One more thing to note, we've identified 3 warning signs with Mincon Group and understanding these should be part of your investment process. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. 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
4 days ago
- Business
- Yahoo
Is It Time To Consider Buying Marks and Spencer Group plc (LON:MKS)?
Marks and Spencer Group plc (LON:MKS), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the LSE over the last few months, increasing to UK£4.10 at one point, and dropping to the lows of UK£3.28. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Marks and Spencer Group's current trading price of UK£3.55 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Marks and Spencer Group's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. 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. What's The Opportunity In Marks and Spencer Group? According to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average, the stock currently looks expensive. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 24.2x is currently well-above the industry average of 18.91x, meaning that it is trading at a more expensive price relative to its peers. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Since Marks and Spencer Group's share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. See our latest analysis for Marks and Spencer Group What does the future of Marks and Spencer Group look like? Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. With profit expected to more than double over the next couple of years, the future seems bright for Marks and Spencer Group. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. What This Means For You Are you a shareholder? MKS's optimistic future growth appears to have been factored into the current share price, with shares trading above industry price multiples. However, this brings up another question – is now the right time to sell? If you believe MKS should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping tabs on MKS for some time, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the optimistic prospect is encouraging for MKS, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For example, we've discovered 2 warning signs that you should run your eye over to get a better picture of Marks and Spencer Group. If you are no longer interested in Marks and Spencer Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential. 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 while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
4 days ago
- Business
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Is International Consolidated Airlines Group S.A.'s (LON:IAG) ROE Of 47% Impressive?
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine International Consolidated Airlines Group S.A. (LON:IAG), by way of a worked example. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. How To Calculate Return On Equity? The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for International Consolidated Airlines Group is: 47% = €2.9b ÷ €6.2b (Based on the trailing twelve months to March 2025). The 'return' is the income the business earned over the last year. That means that for every £1 worth of shareholders' equity, the company generated £0.47 in profit. Check out our latest analysis for International Consolidated Airlines Group Does International Consolidated Airlines Group Have A Good Return On Equity? By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. Pleasingly, International Consolidated Airlines Group has a superior ROE than the average (28%) in the Airlines industry. That's clearly a positive. Bear in mind, a high ROE doesn't always mean superior financial performance. A higher proportion of debt in a company's capital structure may also result in a high ROE, where the high debt levels could be a huge risk . To know the 2 risks we have identified for International Consolidated Airlines Group visit our risks dashboard for free. How Does Debt Impact ROE? Virtually all companies need money to invest in the business, to grow profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used. International Consolidated Airlines Group's Debt And Its 47% ROE International Consolidated Airlines Group clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 2.81. Its ROE is pretty impressive but, it would have probably been lower without the use of debt. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time. Summary Return on equity is one way we can compare its business quality of different companies. In our books, the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So I think it may be worth checking this free report on analyst forecasts for the company. If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt. 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
