Latest news with #RAMSSOL
Yahoo
21-07-2025
- Business
- Yahoo
Ramssol Group Berhad's (KLSE:RAMSSOL) Stock Is Going Strong: Is the Market Following Fundamentals?
Ramssol Group Berhad's (KLSE:RAMSSOL) stock is up by a considerable 12% over the past three months. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. Specifically, we decided to study Ramssol Group Berhad's ROE in this article. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. 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 Is ROE Calculated? The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Ramssol Group Berhad is: 13% = RM16m ÷ RM126m (Based on the trailing twelve months to March 2025). The 'return' is the yearly profit. Another way to think of that is that for every MYR1 worth of equity, the company was able to earn MYR0.13 in profit. Check out our latest analysis for Ramssol Group Berhad Why Is ROE Important For Earnings Growth? So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. 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 Ramssol Group Berhad's Earnings Growth And 13% ROE At first glance, Ramssol Group Berhad seems to have a decent ROE. Yet, the fact that the company's ROE is lower than the industry average of 17% does temper our expectations. Still, we can see that Ramssol Group Berhad has seen a remarkable net income growth of 26% over the past five years. We reckon that there could be other factors at play here. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. Bear in mind, the company does have a respectable ROE. It is just that the industry ROE is higher. So this also does lend some color to the high earnings growth seen by the company. Next, on comparing Ramssol Group Berhad's net income growth with the industry, we found that the company's reported growth is similar to the industry average growth rate of 26% over the last few years. Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. Is Ramssol Group Berhad fairly valued compared to other companies? These 3 valuation measures might help you decide. Is Ramssol Group Berhad Using Its Retained Earnings Effectively? Ramssol Group Berhad has a really low three-year median payout ratio of 6.4%, meaning that it has the remaining 94% left over to reinvest into its business. So it seems like the management is reinvesting profits heavily to grow its business and this reflects in its earnings growth number. Our latest analyst data shows that the future payout ratio of the company is expected to rise to 9.3% over the next three years. Regardless, the future ROE for Ramssol Group Berhad is speculated to rise to 19% despite the anticipated increase in the payout ratio. There could probably be other factors that could be driving the future growth in the ROE. Summary In total, we are pretty happy with Ramssol Group Berhad's performance. In particular, it's great to see that the company has seen significant growth in its earnings backed by a respectable ROE and a high reinvestment rate. On studying current analyst estimates, we found that analysts expect the company to continue its recent growth streak. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. 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.
BusinessToday
23-04-2025
- Business
- BusinessToday
Ramssol Inks Deal With King Mongkul Institute For AI And Digital Solutions
RAMSSOL Group Berhad has announced that its indirect subsidiary, Geekstart Company Limited, has entered into a Strategic Partnership with King Mongkut's Institute of Technology Ladkrabang in Thailand to develop Artificial Intelligence (AI) and digital technology solutions. The group said the solutions are intended to serve the government sector and private organizations in Thailand and internationally. Geekstart, a digital technology company specialising in software development for web, mobile, and Internet of Things (IoT) applications, will collaborate with KMITL, a leading Thai university renowned for its expertise in AI, software engineering, digital technology, and Industry 4.0. The key objectives of the partnership include promoting technology and innovation development, strengthening collaboration between academia and industry, supporting technology knowledge development through training, collaborating on technology and digital projects, developing business opportunities in the technology industry, and promoting investment and market expansion for Thai-developed technologies. Under the agreement, Geekstart will be responsible for developing and delivering technology solutions, project management, technical services, client support, and market expansion. KMITL will contribute with knowledge and research support, personnel and expertise, infrastructure and academic resources, collaboration with government and private agencies, customer base and business opportunities expansion, and assistance in fundraising and obtaining financial support. The agreement also outlines the terms for intellectual property rights, stating that pre-existing intellectual property remains with the respective party, while intellectual property rights arising from joint activities will be jointly determined. The partnership is set for an initial term of five years, with the possibility of extension by mutual agreement. The agreement can be terminated under specific conditions, including mutual agreement or a 90-day written notice by either party. RAMSSOL believes that this strategic partnership aligns with its business strategy to expand its software development technology business, providing an additional revenue stream and enhancing the Group's earnings. The company does not anticipate any material risks from the agreement, beyond normal operational risks. While the agreement is not expected to have a material effect on RAMSSOL's earnings per share, net assets per share, gearing, share capital, or substantial shareholders' shareholdings for the financial year ending December 31, 2025, it is expected to contribute positively to the Group's earnings during its term. The Board of RAMSSOL believes that the agreement is in the best interest of the Group. The agreement does not require approval from any regulatory authority or RAMSSOL's shareholders. Related
