Latest news with #YTLPowerInternational
Yahoo
06-07-2025
- Business
- Yahoo
YTL Power International Berhad (KLSE:YTLPOWR) stock performs better than its underlying earnings growth over last three years
We think that it's fair to say that the possibility of finding fantastic multi-year winners is what motivates many investors. Not every pick can be a winner, but when you pick the right stock, you can win big. Take, for example, the YTL Power International Berhad (KLSE:YTLPOWR) share price, which skyrocketed 520% over three years. On top of that, the share price is up 29% in about a quarter. We love happy stories like this one. The company should be really proud of that performance! Since it's been a strong week for YTL Power International Berhad shareholders, let's have a look at trend of the longer term fundamentals. 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. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). During three years of share price growth, YTL Power International Berhad achieved compound earnings per share growth of 66% per year. This EPS growth is lower than the 84% average annual increase in the share price. This suggests that, as the business progressed over the last few years, it gained the confidence of market participants. It's not unusual to see the market 're-rate' a stock, after a few years of growth. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). We know that YTL Power International Berhad has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on YTL Power International Berhad's balance sheet strength is a great place to start, if you want to investigate the stock further. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, YTL Power International Berhad's TSR for the last 3 years was 585%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence! We regret to report that YTL Power International Berhad shareholders are down 19% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 5.2%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Longer term investors wouldn't be so upset, since they would have made 48%, 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 YTL Power International Berhad better, we need to consider many other factors. For instance, we've identified 1 warning sign for YTL Power International Berhad that you should be aware of. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian 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
Yahoo
15-06-2025
- Business
- Yahoo
A Look At The Fair Value Of YTL Power International Berhad (KLSE:YTLPOWR)
YTL Power International Berhad's estimated fair value is RM3.11 based on 2 Stage Free Cash Flow to Equity Current share price of RM3.70 suggests YTL Power International Berhad is potentially trading close to its fair value Our fair value estimate is 30% lower than YTL Power International Berhad's analyst price target of RM4.41 How far off is YTL Power International Berhad (KLSE:YTLPOWR) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by projecting its future cash flows and then discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. It may sound complicated, but actually it is quite simple! Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. 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. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (MYR, Millions) -RM3.32b -RM1.54b RM1.54b RM1.65b RM1.74b RM1.83b RM1.92b RM2.00b RM2.08b RM2.17b Growth Rate Estimate Source Analyst x6 Analyst x6 Analyst x4 Est @ 6.70% Est @ 5.78% Est @ 5.14% Est @ 4.69% Est @ 4.38% Est @ 4.15% Est @ 4.00% Present Value (MYR, Millions) Discounted @ 8.4% -RM3.1k -RM1.3k RM1.2k RM1.2k RM1.2k RM1.1k RM1.1k RM1.1k RM1.0k RM968 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM4.4b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 3.6%. We discount the terminal cash flows to today's value at a cost of equity of 8.4%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = RM2.2b× (1 + 3.6%) ÷ (8.4%– 3.6%) = RM47b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM47b÷ ( 1 + 8.4%)10= RM21b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is RM26b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of RM3.7, the company appears around fair value at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at YTL Power International Berhad as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.4%, which is based on a levered beta of 0.800. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for YTL Power International Berhad Strength No major strengths identified for YTLPOWR. Weakness Earnings declined over the past year. Interest payments on debt are not well covered. Dividend is low compared to the top 25% of dividend payers in the Integrated Utilities market. Opportunity Annual revenue is forecast to grow faster than the Malaysian market. Good value based on P/E ratio compared to estimated Fair P/E ratio. Threat Debt is not well covered by operating cash flow. Paying a dividend but company has no free cash flows. Annual earnings are forecast to grow slower than the Malaysian market. Valuation is only one side of the coin in terms of building your investment thesis, and it ideally won't be the sole piece of analysis you scrutinize for a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For YTL Power International Berhad, we've compiled three relevant factors you should further research: Risks: As an example, we've found 1 warning sign for YTL Power International Berhad that you need to consider before investing here. Future Earnings: How does YTLPOWR's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the KLSE every day. If you want to find the calculation for other stocks just search 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.
Yahoo
25-05-2025
- Business
- Yahoo
YTL Power International Berhad (KLSE:YTLPOWR) Will Pay A Dividend Of MYR0.04
YTL Power International Berhad's (KLSE:YTLPOWR) investors are due to receive a payment of MYR0.04 per share on 10th of July. This takes the annual payment to 2.1% of the current stock price, which unfortunately is below what the industry is paying. We've discovered 1 warning sign about YTL Power International Berhad. View them for free. While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible. Based on the last payment, YTL Power International Berhad was earning enough to cover the dividend, but free cash flows weren't positive. We think that cash flows should take priority over earnings, so this is definitely a worry for the dividend going forward. Looking forward, earnings per share is forecast to rise by 0.7% over the next year. If the dividend continues along recent trends, we estimate the payout ratio will be 23%, which is in the range that makes us comfortable with the sustainability of the dividend. View our latest analysis for YTL Power International Berhad The company's dividend history has been marked by instability, with at least one cut in the last 10 years. Since 2015, the dividend has gone from MYR0.10 total annually to MYR0.07. The dividend has shrunk at around 3.5% a year during that period. A company that decreases its dividend over time generally isn't what we are looking for. Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. It's encouraging to see that YTL Power International Berhad has been growing its earnings per share at 47% a year over the past five years. Rapid earnings growth and a low payout ratio suggest this company has been effectively reinvesting in its business. Should that continue, this company could have a bright future. Overall, we always like to see the dividend being raised, but we don't think YTL Power International Berhad will make a great income stock. While the low payout ratio is a redeeming feature, this is offset by the minimal cash to cover the payments. We would probably look elsewhere for an income investment. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For instance, we've picked out 1 warning sign for YTL Power International Berhad that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. 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
Malaysian Reserve
22-05-2025
- Business
- Malaysian Reserve
YTL Corp 3Q net profit falls 15.5% on weaker power division, boosted by cement segment
YTL Corp Bhd reported a 15.5% decline in net profit to RM419.38 million for the third quarter ended March 31, 2025 (3Q25), primarily due to weaker results from its utilities segment via YTL Power International. YTL Power's net profit dropped 30% to RM489.41 million, impacted by lower power prices and a stronger ringgit. However, this was partly offset by a strong performance from its cement segment, Malayan Cement, which saw an 80.6% profit surge to RM182.84 million, driven by operational efficiencies and acquisition gains. Revenue for the quarter edged up 1.5% to RM7.32 billion. For the first nine months of FY2025, net profit fell 17.1% to RM1.33 billion while revenue rose 4% to RM23.15 billion. The group expects stable performance from its cement and utilities segments moving forward. –TMR
