Is Pacific Radiance Ltd.'s (SGX:RXS) Recent Stock Performance Tethered To Its Strong Fundamentals?

Simply Wall St.07-23

Most readers would already be aware that Pacific Radiance's (SGX:RXS) stock increased significantly by 9.4% over the past month. Since the market usually pay for a company’s long-term fundamentals, we...

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Since the market usually pay for a company’s long-term fundamentals, we...</p>\n\n<a href=\"https://finance.yahoo.com/news/pacific-radiance-ltd-sgx-rxs-224415777.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance_sg","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>Is Pacific Radiance Ltd.'s (SGX:RXS) Recent Stock Performance Tethered To Its Strong Fundamentals?</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\">\nIs Pacific Radiance Ltd.'s (SGX:RXS) Recent Stock Performance Tethered To Its Strong Fundamentals?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-23 06:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/pacific-radiance-ltd-sgx-rxs-224415777.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Most readers would already be aware that Pacific Radiance's (SGX:RXS) stock increased significantly by 9.4% over the past month. Since the market usually pay for a company’s long-term fundamentals, we...</p>\n\n<a href=\"https://finance.yahoo.com/news/pacific-radiance-ltd-sgx-rxs-224415777.html\">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":"BK6088","symbol_name":"石油天然气设备与服务","start_time":0,"source_url":"https://finance.yahoo.com/news/pacific-radiance-ltd-sgx-rxs-224415777.html","article_id":"2453286742","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/bdrdmnPRNBbldbP2ibp37w--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/92d26d55968bddf376addae5e476c381"],"rights":{"source":"yahoofinance_sg","url":"https://finance.yahoo.com/news/pacific-radiance-ltd-sgx-rxs-224415777.html","rn_cache_url":null,"customStyle":"","selectors":"article, body","filters":"","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2453286742","pubTimestamp":1721688255,"sourceInfo":{"source_id":"yahoofinance_sg","name":"Yahoo Finance"},"weMediaInfo":null,"summary":"Most readers would already be aware that Pacific Radiance's  stock increased significantly by 9.4% over the past month. Since the market usually pay for a company’s long-term fundamentals, we decided to study the company’s key performance indicators to see if they could be influencing the market. In this article, we decided to focus on Pacific Radiance's  ROE.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.Check out our latest analysis for Pacific Radiance. Return on Equity = Net Profit  ÷ Shareholders' Equity. Pacific Radiance doesn't pay any regular dividends currently which essentially means that it has been reinvesting all of its profits into the business. This definitely co","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK6088":"石油天然气设备与服务","RXS.SI":"PacificRadiance"},"translate_title":"Pacific Radiance Ltd.（SGX：RXS）最近的股票表现是否与其强劲的基本面有关？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"RXS.SI":0.9},"content_text":"Most readers would already be aware that Pacific Radiance's (SGX:RXS) stock increased significantly by 9.4% over the past month. Since the market usually pay for a company’s long-term fundamentals, we decided to study the company’s key performance indicators to see if they could be influencing the market. In this article, we decided to focus on Pacific Radiance's  ROE. \n 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. \n Check out our latest analysis for Pacific Radiance \n How Do You Calculate Return On Equity? \n ROE can be calculated by using the formula: \n Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity \nSo, based on the above formula, the ROE for Pacific Radiance is:\n38% = US$15m ÷ US$38m (Based on the trailing twelve months to December 2023).\n The 'return' is the yearly profit. Another way to think of that is that for every SGD1 worth of equity, the company was able to earn SGD0.38 in profit. \n What Has ROE Got To Do With Earnings Growth? \n 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. \n Pacific Radiance's Earnings Growth And 38% ROE \n To begin with, Pacific Radiance has a pretty high ROE which is interesting. Secondly, even when compared to the industry average of 8.7% the company's ROE is quite impressive. Under the circumstances, Pacific Radiance's considerable five year net income growth of 71% was to be expected. \n We then compared Pacific Radiance's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 40% in the same 5-year period. \n\n\n\n  SGX:RXS Past Earnings Growth July 22nd 2024\n \n\n Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Pacific Radiance is trading on a high P/E or a low P/E, relative to its industry. \n Is Pacific Radiance Using Its Retained Earnings Effectively? \n Pacific Radiance doesn't pay any regular dividends currently which essentially means that it has been reinvesting all of its profits into the business. This definitely contributes to the high earnings growth number that we discussed above. \n Conclusion \n On the whole, we feel that Pacific Radiance's performance has been quite good. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. 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. Remember, the price of a stock is also dependent on the perceived risk. Therefore investors must keep themselves informed about the risks involved before investing in any company. You can see the 5 risks we have identified for Pacific Radiance by visiting our risks dashboard for free  on our platform here. \nHave 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.\nHave feedback on this article? Concerned about the content? Get in touch with us directly. 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