Is The Market Rewarding Addvalue Technologies Ltd (SGX:A31) With A Negative Sentiment As A Result Of Its Mixed Fundamentals?

Simply Wall St.10-19

It is hard to get excited after looking at Addvalue Technologies' (SGX:A31) recent performance, when its stock has declined 31% over the past three months. We, however decided to study the company's...

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We, however decided to study the company's...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/tech/sgx-a31/addvalue-technologies-shares/news/is-the-market-rewarding-addvalue-technologies-ltd-sgxa31-wit\">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>Is The Market Rewarding Addvalue Technologies Ltd (SGX:A31) With A Negative Sentiment As A Result Of Its Mixed 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 The Market Rewarding Addvalue Technologies Ltd (SGX:A31) With A Negative Sentiment As A Result Of Its Mixed Fundamentals?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-19 06:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/sg/tech/sgx-a31/addvalue-technologies-shares/news/is-the-market-rewarding-addvalue-technologies-ltd-sgxa31-wit><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>It is hard to get excited after looking at Addvalue Technologies' (SGX:A31) recent performance, when its stock has declined 31% over the past three months.   We, however decided to study the company's...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/tech/sgx-a31/addvalue-technologies-shares/news/is-the-market-rewarding-addvalue-technologies-ltd-sgxa31-wit\">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":"BK6005","symbol_name":"通信设备","start_time":0,"source_url":"https://simplywall.st/stocks/sg/tech/sgx-a31/addvalue-technologies-shares/news/is-the-market-rewarding-addvalue-technologies-ltd-sgxa31-wit","article_id":"2476229898","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8111000-choice1-main-header/1585186745276"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2476229898","pubTimestamp":1729289194,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"It is hard to get excited after looking at Addvalue Technologies' (SGX:A31) recent performance, when its stock has...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK6005":"通信设备","BK6515":"技术设备股","A31.SI":"创值科技"},"translate_title":"由于Addvalue Technologies Ltd(SGX：A31)的基本面好坏参半，市场是否会对其产生负面情绪？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"A31.SI":1},"content_text":"It is hard to get excited after looking at Addvalue Technologies' (SGX:A31) recent performance, when its stock has declined 31% over the past three months.   We, however decided to study the company's financials to determine if they have got anything to do with the price decline.  Long-term fundamentals are usually what drive market outcomes, so it's worth paying close attention.     Specifically, we decided to study Addvalue Technologies'  ROE in this article.    Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital.  Put another way, it reveals the company's success at turning shareholder investments into profits.  View our latest analysis for Addvalue Technologies  How To Calculate Return On Equity?  The formula for return on equity is:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Addvalue Technologies is:4.5% = US$278k ÷ US$6.1m (Based on the trailing twelve months to March 2024). The 'return' is the yearly profit.  One way to conceptualize this is that for each SGD1 of shareholders' capital it has, the company made SGD0.05 in profit.   What Has ROE Got To Do With Earnings Growth?  So far, we've learned that ROE is a measure of a company's profitability.  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 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.  Addvalue Technologies' Earnings Growth And 4.5% ROE   When you first look at it, Addvalue Technologies' ROE doesn't look that attractive.   We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 7.4%.   For this reason, Addvalue Technologies' five year net income decline of 8.1% is not surprising given its lower ROE.  We believe that there also might be other aspects that are negatively influencing the company's earnings prospects.  Such as - low earnings retention or poor allocation of capital.     However, when we compared Addvalue Technologies' growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 15% in the same period. This is quite worrisome.   SGX:A31 Past Earnings Growth October 18th 2024 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.    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 Addvalue Technologies is trading on a high P/E or a low P/E, relative to its industry.    Is Addvalue Technologies Making Efficient Use Of Its Profits?    Addvalue Technologies doesn't pay any regular dividends, meaning that potentially all of its profits are being reinvested in the business, which doesn't explain why the company's earnings have shrunk if it is retaining all of its profits.  It looks like there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.     Summary    On the whole, we feel that the performance shown by Addvalue Technologies can be open to many interpretations.      While the company does have a high rate of reinvestment, the low ROE means that all that reinvestment is not reaping any benefit to its investors, and moreover, its having a negative impact on the earnings growth.       Wrapping up, we would proceed with caution with this company and one way of doing that would be to look at the risk profile of the business.    Our risks dashboard would have the 4 risks we have identified for Addvalue Technologies.    New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave 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":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"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":"4.29.1","shortVersion":"4.29.1","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/2476229898"}