Centurion's (SGX:OU8) Earnings Are Of Questionable Quality

Simply Wall St.04-02

Centurion Corporation Limited's (SGX:OU8) robust earnings report didn't manage to move the market for its stock. We did some digging, and we found some concerning factors in the details. View our...

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View our...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/real-estate-management-and-development/sgx-ou8/centurion-shares/news/centurions-sgxou8-earnings-are-of-questionable-quality\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Centurion's (SGX:OU8) Earnings Are Of Questionable Quality</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCenturion's (SGX:OU8) Earnings Are Of Questionable Quality\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-02 06:16 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/sg/real-estate-management-and-development/sgx-ou8/centurion-shares/news/centurions-sgxou8-earnings-are-of-questionable-quality><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Centurion Corporation Limited's (SGX:OU8) robust earnings report didn't manage to move the market for its stock.  We did some digging, and we found some concerning factors in the details.     View our...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/real-estate-management-and-development/sgx-ou8/centurion-shares/news/centurions-sgxou8-earnings-are-of-questionable-quality\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"OU8.SI","symbol_name":"胜捷企业有限公司","start_time":0,"source_url":"https://simplywall.st/stocks/sg/real-estate-management-and-development/sgx-ou8/centurion-shares/news/centurions-sgxou8-earnings-are-of-questionable-quality","article_id":"2424085669","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9612014-choice2-main-header/1585186781436"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2424085669","pubTimestamp":1712009798,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Centurion Corporation Limited's ( SGX:OU8 ) robust earnings report didn't manage to move the market for its stock. We...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"OU8.SI":"胜捷企业有限公司","BWCU.SI":"运通网城"},"translate_title":"百夫长（新交所代码：OU8）的收入质量值得怀疑","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BWCU.SI":1,"OU8.SI":1},"content_text":"Centurion Corporation Limited's (SGX:OU8) robust earnings report didn't manage to move the market for its stock.  We did some digging, and we found some concerning factors in the details.     View our latest analysis for Centurion SGX:OU8 Earnings and Revenue History April 1st 2024  The Impact Of Unusual Items On Profit  Importantly, our data indicates that Centurion's profit received a boost of S$85m in unusual items, over the last year.   We can't deny that higher profits generally leave us optimistic, but we'd prefer it if the profit were to be sustainable.  We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature.  Which is hardly surprising, given the name.   We can see that Centurion's positive unusual items were quite significant relative to its profit in the year to December 2023.  All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power.    That might leave you wondering what analysts are forecasting in terms of future profitability.  Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.   Our Take On Centurion's Profit Performance As we discussed above, we think the significant positive unusual item makes Centurion's earnings a poor guide to its underlying profitability.      As a result, we think it may well be the case that Centurion's underlying earnings power is lower than its statutory profit.    But on the bright side, its earnings per share have grown at an extremely impressive rate over the last three years.     At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly.    Keep in mind, when it comes to analysing a stock it's worth noting the risks involved.    Be aware that Centurion is showing 4 warning signs in our investment analysis and 2 of those make us uncomfortable...    This note has only looked at a single factor that sheds light on the nature of Centurion's profit.   But there are plenty of other ways to inform your opinion of a company.  Some people consider a high return on equity to be a good sign of a quality business.  So you may wish to see this free  collection of companies boasting high return on equity, or  this list of stocks that insiders are buying. Valuation is complex, but we're helping make it simple.Find out whether Centurion is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave 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.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2424085669"}