Pacific & Orient Berhad's (KLSE:P&O) stock is up by 8.7% over the past three months. Given its impressive performance, we decided to study the company's key financial indicators as a company's long-term fundamentals usually dictate market outcomes. In this article, we decided to focus on Pacific & Orient Berhad's ROE.
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.
See our latest analysis for Pacific & Orient Berhad
How Do You Calculate Return On Equity?
Return on equity can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Pacific & Orient Berhad is:
12% = RM56m ÷ RM472m (Based on the trailing twelve months to September 2022).
The 'return' refers to a company's earnings over the last year. That means that for every MYR1 worth of shareholders' equity, the company generated MYR0.12 in profit.
What Has ROE Got To Do With 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 all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
A Side By Side comparison of Pacific & Orient Berhad's Earnings Growth And 12% ROE
To begin with, Pacific & Orient Berhad seems to have a respectable ROE. Even when compared to the industry average of 11% the company's ROE looks quite decent. This certainly adds some context to Pacific & Orient Berhad's exceptional 72% net income growth seen over the past five years. We reckon that there could also be other factors at play here. Such as - high earnings retention or an efficient management in place.
As a next step, we compared Pacific & Orient Berhad's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 4.0%.
Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. Is Pacific & Orient Berhad fairly valued compared to other companies? These 3 valuation measures might help you decide.
Is Pacific & Orient Berhad Making Efficient Use Of Its Profits?
Pacific & Orient Berhad's LTM (or last twelve month) payout ratio is a pretty moderate 48%, meaning the company retains 52% of its income. This suggests that its dividend is well covered, and given the high growth we discussed above, it looks like Pacific & Orient Berhad is reinvesting its earnings efficiently.
Moreover, Pacific & Orient Berhad is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years.
Conclusion
In total, we are pretty happy with Pacific & Orient Berhad's performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. Not to forget, share price outcomes are also dependent on the potential risks a company may face. So it is important for investors to be aware of the risks involved in the business. You can see the 3 risks we have identified for Pacific & Orient Berhad by visiting our risks dashboard for free on our platform here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This 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.
Join A Paid User Research Session
You'll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
android haberleri
(2023-01-26 09:50:55Z)Good post! We will be linking to this particularly great post on our site. Keep up the great writing
REPLYJosephcer
(2023-02-19 20:15:37Z)
REPLYNicely put. Cheers!
https://essaywritingserviceahrefs.com postgraduate dissertation
Ijcbgw
(2023-02-22 23:08:25Z)digoxin 250mg for sale digoxin buy online molnupiravir uk
REPLYUrmcey
(2023-02-24 07:52:32Z)purchase diamox online cheap cost imdur 40mg buy azathioprine pills
REPLYLgnpms
(2023-02-25 20:27:38Z)cost lanoxin 250 mg buy telmisartan for sale buy molnupiravir 200mg pill
REPLYRobertpet
(2023-02-26 19:43:03Z)
REPLYWonderful advice. Many thanks.
best dissertation writing companies writing your dissertation in a week purchase a dissertation
Shawnwew
(2023-02-27 17:29:18Z)
REPLYBeneficial write ups. Regards.
essay helper app help writing a narrative essay medical school personal statement
Mnkqdo
(2023-02-28 03:50:27Z)order coreg 25mg sale oxybutynin order order elavil 10mg online
REPLYLuhkqk
(2023-03-01 07:48:26Z)amoxil 1000mg cheap order stromectol generic purchase stromectol online
REPLYBckzzo
(2023-03-01 15:32:03Z)cheap alendronate motrin 600mg generic ibuprofen 600mg canada
REPLYTimothyCed
(2023-03-02 11:02:20Z)
REPLYNicely put. Regards.
professional college paper writers writing my paper for me pay someone to write my paper cheap
Ljpbab
(2023-03-02 19:07:27Z)oral priligy 30mg order avana generic domperidone 10mg tablet
REPLYHectordex
(2023-03-03 00:56:29Z)
REPLYWhoa all kinds of useful tips.
essay writing tips best rated essay writing service best essay writing service website
Vvgokj
(2023-03-03 03:41:09Z)nortriptyline us order paracetamol 500mg pill purchase paroxetine pills
REPLYNsenhw
(2023-03-04 08:39:06Z)indocin 50mg drug order tamsulosin 0.2mg online cheap cenforce for sale
REPLYHectordex
(2023-03-04 11:54:01Z)
REPLYNicely put, Many thanks!
write my book report for me someone to do my essay for me cheap who can write a cover letter for me
Qwzwss
(2023-03-04 15:56:12Z)buy famotidine remeron 15mg usa mirtazapine 30mg tablet
REPLYManuelLitle
(2023-03-05 17:00:38Z)
REPLYMany thanks. Helpful stuff.
term paper writers paper writer service how to write a reaction paper professional paper writers
pay someone to write a paper check paper for plagiarism online free custom writing service research paper writing service review collage paper writing service contract
how to write a essay for college https://essaywritingservicebbc.com
Itrtec
(2023-03-06 02:30:49Z)order ropinirole 1mg online ropinirole tablet labetalol 100 mg generic
REPLYBrandonBuh
(2023-03-06 11:19:13Z)You explained it superbly.
REPLYwrite my paper fast writing paper paper writer academic paper writers
pay someone to do my paper help in writing research paper service buy papers online for college reliable service thane paper writing reviews
find dissertations online https://ouressays.com
Patrickhar
(2023-03-06 14:57:20Z)You expressed it wonderfully.
REPLYbuy college essay buying essays uk cheap essay papers for sale pay someone to do essay
Andrewnit
(2023-03-06 18:37:55Z)You revealed it very well!
REPLYhelp with essay writing custom essay writing help help with writing a paper help me to write an essay
BrandonBuh
(2023-03-07 14:51:44Z)
REPLYWhoa quite a lot of fantastic info.
pay someone to do my essay writing a personal essay do my college essay for me how do i know if my essay is good
do my homework essay write my essay reddit do my essay do my essay writing a persuasive essay
writing dissertation https://helpwritingdissertation.com
Caumup
(2023-03-07 15:36:33Z)order fenofibrate pills order fenofibrate for sale sildenafil 100mg ca
REPLYAndrewnit
(2023-03-07 22:07:24Z)You stated that exceptionally well!
REPLYhire someone to do my essay do my uni essay for me writing argumentative essays uk essay writer
Uzhtjk
(2023-03-07 23:29:17Z)tadacip pill oral clopidogrel trimox 500mg pill
REPLYPatrickhar
(2023-03-08 06:15:51Z)
REPLYThis is nicely put! .
buy essay online reviews buy cheap essay pay for essay online where can i buy essay
BrandonBuh
(2023-03-08 18:05:09Z)
REPLYRegards, Loads of write ups.
paper writing service review pay someone to do my paper best paper writing services best term paper writing service review
coursework writer nerd do my homework help with coursework do my math homework word problems
how to write a narrative essay https://essayservicehelp.com
ManuelLitle
(2023-03-09 00:18:55Z)You reported that very well.
REPLYpay someone to do my math homework pay someone to do my chemistry homework can robots do my homework just do my homework discount
medical thesis writing service india thesis statements for literary analysis phd thesis database papers thesis
buy essay online reviews https://domyhomeworkformecheap.com
Andrewnit
(2023-03-09 00:58:12Z)
REPLYGreat info. Thanks a lot!
college paper writing service usa no prlagiarism paper writing service custom term papers writing service buy custom paper
Patrickhar
(2023-03-09 02:28:05Z)
REPLYAmazing postings. Thanks!
research paper writers hire write my paper for cheap my paper writer websites to type papers
Rbpcki
(2023-03-09 04:55:58Z)usa pharmacy cialis Buy cheap tadalafil purchase viagra generic
REPLYFekopc
(2023-03-09 11:10:34Z)nexium pills lasix pills lasix over the counter
REPLYManuelLitle
(2023-03-09 18:42:36Z)
REPLYAppreciate it. Plenty of posts!
make an essay write my essay for cheap hire a writer for an essay thank you for teaching me how to read and write
term paper paper proposals buying a research paper for college science research proposal
admission essay writing https://dissertationwritingtops.com
BrandonBuh
(2023-03-09 20:28:44Z)You reported this effectively!
REPLYwrite a descriptive essay on farming in my town can someone do my essay can you write a letter for me can someone do my essay for me
reddit best resume writing service professional research writing service writing a reflective essay paper writing services
how to write an compare and contrast essay https://helpwritingdissertation.com
Andrewnit
(2023-03-10 03:27:55Z)You stated this really well!
REPLYbuy resume paper phd research paper writing service in chennai graduate school paper writing service writing service for research paper
Patrickhar
(2023-03-10 14:53:16Z)
REPLYLovely posts, Kudos!
the paper writing service free term paper writing service buying papers for college research paper writing service canada
Hapdmz
(2023-03-10 21:18:45Z)tadalafil 40mg brand erection problems cheap erectile dysfunction pills
REPLYBrandonBuh
(2023-03-10 22:51:55Z)
REPLYThanks a lot, I appreciate it.
essay writer reviews i can t write an essay to save my life write my essay helper professional essay writers
best research paper writing service pay for writing papers high school research paper writing service writing a service hour reflection paper
compare and contrast essay on high school and college https://writinganessaycollegeservice.com
Andrewnit
(2023-03-11 05:51:47Z)
REPLYLovely facts, Thank you!
make an essay for me write a narrative essay for me who can write essay for me can you write my essay for me
Ziamjq
(2023-03-11 08:01:11Z)buy minocin without prescription order hytrin 1mg buy terazosin 5mg without prescription
REPLYPatrickhar
(2023-03-12 00:17:01Z)
REPLYWith thanks! I enjoy this.
smart essay writing service reviews essay writing service feedback writing term paper service cheap assignment writing service
BrandonBuh
(2023-03-12 01:15:30Z)You actually explained this exceptionally well!
REPLYamazon do my english homework how do i concentrate on my homework can you do my homework for me do my literature homework
essays writing service report writing service college application essay writing service smart custom writing service
how to write analytical essay https://essaywritinghelperonline.com
Andrewnit
(2023-03-12 08:10:33Z)
REPLYKudos. Plenty of content!
admission paper writing service buying papers online college pay to do my paper custom paper writing service online help
ManuelLitle
(2023-03-12 12:52:53Z)
REPLYTruly a lot of superb knowledge!
cheapest essay writers online essay writer for free what should i do my persuasive essay on me as a writer essay
term paper writing services help with a research paper research proposal for phd developing research proposals
help for essay writing https://studentessaywriting.com
Nsmdgn
(2023-03-12 17:00:37Z)order provigil pills buy stromectol generic promethazine pills
REPLYBrandonBuh
(2023-03-13 03:33:39Z)
REPLYInformation very well used!!
write my paper for me cheap write my term papers term paper writer write my paper today
pay for college essay buy essay online pay for college essays buy essay online cheap
essay writing steps https://writinganessaycollegeservice.com
Kjqzqj
(2023-03-13 04:48:36Z)purchase metformin for sale oral verapamil 120mg buy tamoxifen 20mg sale
REPLYAbfsfh
(2023-03-14 10:57:05Z)buy prednisone 40mg online accutane 20mg tablet buy amoxicillin 1000mg pills
REPLYCgbvjv
(2023-03-16 08:53:56Z)buy sildenafil online cheap lyrica 150mg price buy proscar 5mg without prescription
REPLYTtwjit
(2023-03-16 21:29:24Z)cost accutane purchase ampicillin acillin drug
REPLYJfchcg
(2023-03-18 09:15:19Z)buy zofran online bactrim 960mg cheap buy bactrim pills
REPLYYjuhhu
(2023-03-19 00:44:22Z)ivermectine online purchase deltasone without prescription buy deltasone 5mg generic
REPLYRptpmx
(2023-03-20 10:55:20Z)ventolin inhaler buy albuterol generic order augmentin 375mg sale
REPLYManuelLitle
(2023-03-21 09:08:10Z)You mentioned that very well!
REPLYcustom essay service essay writing guide free will writing service charity writing a college admission essay
masters paper writing service pay someone to write a paper paper writing service cheap affordable research paper writing service
top cv writing services https://englishessayhelp.com
Patrickhar
(2023-03-21 10:04:16Z)
REPLYWonderful forum posts, Appreciate it.
help writing dissertation proposal uk dissertation writing services dissertation writers how to buy dissertation online
Txdfiu
(2023-03-21 10:48:40Z)buy isotretinoin 40mg online cheap order amoxicillin 250mg without prescription order generic azithromycin 250mg
REPLYPatrickhar
(2023-03-22 00:21:54Z)You mentioned that well!
REPLYwriting thesis master thesis writing service in pakistan a thesis will thesis writing help
ManuelLitle
(2023-03-22 02:52:37Z)
REPLYYou said it nicely.!
do my homework for money my posse don t do homework pdf don t want to do my homework do my economics homework for me
cheap write my essay write my essay paper essay writer review persuasive essay writer
grant writing service https://researchproposalforphd.com
Oszkji
(2023-03-22 09:56:52Z)provigil 200mg pills lopressor sale buy lopressor pills
REPLYPatrickhar
(2023-03-22 14:22:17Z)
REPLYThanks! Plenty of content!
how to write a conclusion for a research paper write my paper for money online research paper writer professional research paper writers
ManuelLitle
(2023-03-22 20:35:49Z)
REPLYPosition effectively regarded!.
write my research paper research proposal introduction research paper buy custom research papers writing service
just buy essay order custom essay online best site to buy college essay buy essay online review
music to write essays to https://topswritingservices.com
Patrickhar
(2023-03-23 05:31:24Z)
REPLYReally quite a lot of beneficial data.
essay for me thank you for teaching me how to read and write writing a persuasive essay who will write my essay for me
Wkmnmf
(2023-03-23 21:51:37Z)prednisolone 5mg us buy lasix 100mg online cheap furosemide 40mg drug
REPLYBcoagt
(2023-03-24 09:02:05Z)avodart 0.5mg without prescription cephalexin 500mg generic buy orlistat 60mg for sale
REPLYBrandonBuh
(2023-03-25 10:38:51Z)
REPLYHelpful tips. Cheers!
pay someone to do my essay online essay writer uk persuasive essay writer thank you for teaching me how to read and write
writing services for essays fake essay writing service essay help service college essay writing service in usa
best dissertation https://helptowriteanessay.com
Kealtt
(2023-03-26 08:25:00Z)vibra-tabs generic vardenafil cost buy zovirax medication
REPLYBrandonBuh
(2023-03-26 09:24:35Z)
REPLYWow many of useful knowledge!
what i want to do with my life essay can you write my essay help i can t write my essay i can t write an essay to save my life
buy essay writing service solicitor will writing service essay writing service review card writing service
benefits of college education essay https://englishessayhelp.com
Andrewnit
(2023-03-26 18:58:57Z)
REPLYRegards! A lot of postings!
uc essay help need help in writing an essay essay helper free college essay help near me
BrandonBuh
(2023-03-27 08:30:56Z)
REPLYCheers, A lot of write ups.
just do my homework a app that will do my math homework what happens if i don t do my homework looking for someone to do my homework
writing essay website essay on things i like to do during my pastime write a paragraph for me using these words write my capstone paper for me
pay to write essay https://essaywritingserviceahrefs.com
Andrewnit
(2023-03-27 17:53:21Z)
REPLYYou've made your point.
writing a phd dissertation best dissertation help statement of the problem dissertation dissertation website
Tmzyqf
(2023-03-28 05:16:42Z)order omnicef online lansoprazole 30mg price buy pantoprazole 20mg sale
REPLYBrandonBuh
(2023-03-28 07:15:46Z)
REPLYThank you! Lots of info.
pay to write a research paper cheap essay papers for sale buy a custom essay buy college essays
reviews of dissertation writing services dissertation writing services usa online dissertation help veroffentlichen my phd
sociology dissertation https://researchproposalforphd.com
Andrewnit
(2023-03-28 16:44:52Z)
REPLYYou definitely made your point!
buying paper buy a paper for college academic paper writing service critical analysis paper writing service
Sypnhz
(2023-03-28 18:30:08Z)ditropan drug trileptal 600mg cheap trileptal 300mg drug
REPLY