Does CapitaLand Investment Limited's (SGX:9CI) Weak Fundamentals Mean That The Stock Could Move In The Opposite Direction?

Simply Wall St.10-25

CapitaLand Investment's (SGX:9CI) stock up by 7.0% over the past three months. Given that the markets usually pay for the long-term financial health of a company, we wonder if the current momentum ...

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MaxGain
11-01
MaxGain
Yes agree, this is a company that will likely go into bankruptcy very soon, so may want to consider shorting it.

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Given that the markets usually pay for the long-term financial health of a company, we wonder if the current momentum ...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/real-estate-management-and-development/sgx-9ci/capitaland-investment-shares/news/does-capitaland-investment-limiteds-sgx9ci-weak-fundamentals\">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>Does CapitaLand Investment Limited's (SGX:9CI) Weak Fundamentals Mean That The Stock Could Move In The Opposite Direction?</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\">\nDoes CapitaLand Investment Limited's (SGX:9CI) Weak Fundamentals Mean That The Stock Could Move In The Opposite Direction?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-25 09:48 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/sg/real-estate-management-and-development/sgx-9ci/capitaland-investment-shares/news/does-capitaland-investment-limiteds-sgx9ci-weak-fundamentals><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>CapitaLand Investment's (SGX:9CI) stock up by 7.0% over the past three months.   Given that the markets usually pay for the long-term financial health of a company, we wonder if the current momentum ...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/real-estate-management-and-development/sgx-9ci/capitaland-investment-shares/news/does-capitaland-investment-limiteds-sgx9ci-weak-fundamentals\">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":"LU0348816934.USD","symbol_name":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT\" (USD)","start_time":0,"source_url":"https://simplywall.st/stocks/sg/real-estate-management-and-development/sgx-9ci/capitaland-investment-shares/news/does-capitaland-investment-limiteds-sgx9ci-weak-fundamentals","article_id":"2478642606","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/7312000-choice2-main-header/1585186669177"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2478642606","pubTimestamp":1729820922,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"CapitaLand Investment's (SGX:9CI) stock up by 7.0% over the past three months. 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Given that the markets usually pay for the long-term financial health of a company, we wonder if the current momentum in the share price will keep up, given that the company's financials don't look very promising.      Specifically, we decided to study CapitaLand Investment's  ROE in this article.    Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested.  In simpler terms, it measures the profitability of a company in relation to shareholder's equity.  Check out our latest analysis for CapitaLand Investment  How Do You Calculate Return On Equity?  ROE 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 CapitaLand Investment is:1.9% = S$331m ÷ S$18b (Based on the trailing twelve months to June 2024). The 'return' is the yearly profit.  So, this means that for every SGD1 of its shareholder's investments, the company generates a profit of SGD0.02.   What Has ROE Got To Do With Earnings Growth?  Thus far, we have learned that ROE measures how efficiently a company is generating its profits.  Based on how much of its profits the company chooses to reinvest or \"retain\", we are then able to evaluate a company's future ability to generate profits.  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.  CapitaLand Investment's Earnings Growth And 1.9% ROE   It is quite clear that CapitaLand Investment's ROE is rather low.   Even when compared to the industry average of 3.5%, the ROE figure is pretty disappointing.   Given the circumstances, the significant decline in net income by 8.1% seen by CapitaLand Investment over the last five years is not surprising.  We reckon that there could also be other factors at play here.  For instance, the company has a very high payout ratio, or is faced with competitive pressures.     So, as a next step, we compared CapitaLand Investment's performance against the industry and were disappointed to discover that while the company has been shrinking its earnings, the industry has been growing its earnings at a rate of 2.0% over the last few years.   SGX:9CI Past Earnings Growth October 25th 2024 The basis for attaching value to a company is, to a great extent, tied to its earnings growth.  The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in.  By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await.    Is CapitaLand Investment fairly valued compared to other companies? These 3 valuation measures might help you decide.    Is CapitaLand Investment Efficiently Re-investing Its Profits?   CapitaLand Investment has a high three-year median payout ratio of 75% (that is, it is retaining 25% of its profits). This suggests that the company is paying most of its profits as dividends to its shareholders. This goes some way in explaining why its earnings have been shrinking.    With only very little left to reinvest into the business, growth in earnings is far from likely.     You can see the 3 risks we have identified for CapitaLand Investment by visiting our risks dashboard for free  on our platform here.   In addition, CapitaLand Investment has been paying dividends over a period of three years suggesting that keeping up dividend payments is preferred by the management even though earnings have been in decline.      Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 63%.   Still, forecasts suggest that CapitaLand Investment's future ROE will rise to 6.8% even though the the company's payout ratio is not expected to change by much.      Conclusion    On the whole, CapitaLand Investment's performance is quite a big let-down.      Because the company is not reinvesting much into the business, and given the low ROE, it's not surprising to see the lack or absence of growth in its earnings.       Having said that, looking at current analyst estimates, we found that the company's earnings growth rate is expected to see a huge improvement.     To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now 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":0},"commentList":[{"id":366324017254600,"gmtCreate":1730442988516,"gmtModify":1730442992643,"author":{"id":"3575426937784230","authorId":"3575426937784230","name":"MaxGain","avatar":"https://static.tigerbbs.com/1e7ec5528a5a65cfeab0826428adcb08","vip":1,"crmLevel":1,"crmLevelSwitch":0,"authorIdStr":"3575426937784230","idStr":"3575426937784230"},"htmlText":"Yes agree, this is a company that will likely go into bankruptcy very soon, so may want to consider shorting it.","listText":"Yes agree, this is a company that will likely go into bankruptcy very soon, so may want to consider shorting it.","text":"Yes agree, this is a company that will likely go into bankruptcy very soon, so may want to consider shorting it.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/366324017254600","repostId":2478642606,"repostType":2,"repost":{"id":"2478642606","pubTimestamp":1729820922,"share":"https://ttm.financial/m/news/2478642606?lang=&edition=fundamental","pubTime":"2024-10-25 09:48","market":"nz","language":"en","title":"Does CapitaLand Investment Limited's (SGX:9CI) Weak Fundamentals Mean That The Stock Could Move In The Opposite Direction?","url":"https://stock-news.laohu8.com/highlight/detail?id=2478642606","media":"Simply Wall St.","summary":"CapitaLand Investment's (SGX:9CI) stock up by 7.0% over the past three months. Given that the markets usually pay for...","content":"<html><body><div><p> CapitaLand Investment's (SGX:9CI) stock up by 7.0% over the past three months.   Given that the markets usually pay for the long-term financial health of a company, we wonder if the current momentum in the share price will keep up, given that the company's financials don't look very promising.      Specifically, we decided to study CapitaLand Investment's  ROE in this article.   </p><p> Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested.  In simpler terms, it measures the profitability of a company in relation to shareholder's equity. </p><p><span> Check out our latest analysis for CapitaLand Investment </span></p><h2> How Do You Calculate Return On Equity? </h2><p> <strong>ROE can be calculated by using the formula:</strong> </p><p> Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity </p><p>So, based on the above formula, the ROE for CapitaLand Investment is:</p><p>1.9% = S$331m ÷ S$18b (Based on the trailing twelve months to June 2024).</p><p> The 'return' is the yearly profit.  So, this means that for every SGD1 of its shareholder's investments, the company generates a profit of SGD0.02. </p> <h2> What Has ROE Got To Do With Earnings Growth? </h2><p> Thus far, we have learned that ROE measures how efficiently a company is generating its profits.  Based on how much of its profits the company chooses to reinvest or \"retain\", we are then able to evaluate a company's future ability to generate profits.  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. </p><h2> CapitaLand Investment's Earnings Growth And 1.9% ROE  </h2><p> It is quite clear that CapitaLand Investment's ROE is rather low.   Even when compared to the industry average of 3.5%, the ROE figure is pretty disappointing.   Given the circumstances, the significant decline in net income by 8.1% seen by CapitaLand Investment over the last five years is not surprising.  We reckon that there could also be other factors at play here.  For instance, the company has a very high payout ratio, or is faced with competitive pressures.    </p><p> So, as a next step, we compared CapitaLand Investment's performance against the industry and were disappointed to discover that while the company has been shrinking its earnings, the industry has been growing its earnings at a rate of 2.0% over the last few years.   </p><figure><img height=\"334\" loading=\"lazy\" src=\"https://images.simplywall.st/asset/chart/22322978-past-earnings-growth-1-dark/1729820917999\" width=\"821\"/><figcaption>SGX:9CI Past Earnings Growth October 25th 2024</figcaption></figure><p> The basis for attaching value to a company is, to a great extent, tied to its earnings growth.  The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in.  By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await.    Is CapitaLand Investment fairly valued compared to other companies? These 3 valuation measures might help you decide.   </p><h2> Is CapitaLand Investment Efficiently Re-investing Its Profits? </h2> <p> CapitaLand Investment has a high three-year median payout ratio of 75% (that is, it is retaining 25% of its profits). This suggests that the company is paying most of its profits as dividends to its shareholders. This goes some way in explaining why its earnings have been shrinking.    With only very little left to reinvest into the business, growth in earnings is far from likely.     You can see the 3 risks we have identified for CapitaLand Investment by visiting our <b>risks dashboard</b> for free  on our platform here. </p> <p> In addition, CapitaLand Investment has been paying dividends over a period of three years suggesting that keeping up dividend payments is preferred by the management even though earnings have been in decline.      Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 63%.   Still, forecasts suggest that CapitaLand Investment's future ROE will rise to 6.8% even though the the company's payout ratio is not expected to change by much.    </p> <h2> Conclusion  </h2> <p> On the whole, CapitaLand Investment's performance is quite a big let-down.      Because the company is not reinvesting much into the business, and given the low ROE, it's not surprising to see the lack or absence of growth in its earnings.       Having said that, looking at current analyst estimates, we found that the company's earnings growth rate is expected to see a huge improvement.     To know more about the company's future earnings growth forecasts take a look at this <strong>free</strong> report on analyst forecasts for the company to find out more. </p><div><h3><strong>New: </strong>AI Stock Screener &amp; Alerts</h3><p>Our new AI Stock Screener scans the market every day to uncover opportunities.</p><p>• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.</p>Explore Now for Free</div><p><strong>Have feedback on this article? Concerned about the content?</strong> <strong>Get in touch</strong><strong> with us directly.</strong><i> Alternatively, email editorial-team (at) simplywallst.com.</i><i>This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</i></p></div></body></html>","source":"simplywall_highlight","collect":0,"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>Does CapitaLand Investment Limited's (SGX:9CI) Weak Fundamentals Mean That The Stock Could Move In The Opposite Direction?</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\">\nDoes CapitaLand Investment Limited's (SGX:9CI) Weak Fundamentals Mean That The Stock Could Move In The Opposite Direction?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-25 09:48 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/sg/real-estate-management-and-development/sgx-9ci/capitaland-investment-shares/news/does-capitaland-investment-limiteds-sgx9ci-weak-fundamentals><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>CapitaLand Investment's (SGX:9CI) stock up by 7.0% over the past three months.   Given that the markets usually pay for the long-term financial health of a company, we wonder if the current momentum ...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/real-estate-management-and-development/sgx-9ci/capitaland-investment-shares/news/does-capitaland-investment-limiteds-sgx9ci-weak-fundamentals\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"https://images.simplywall.st/asset/industry/7312000-choice2-main-header/1585186669177","relate_stocks":{"LU0348816934.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT\" (USD)","LU2088747998.USD":"EASTSPRING INVESTMENTS ASIA REAL ESTATE MULTI ASSE \"ADM\" (USD) INC","LU2088747725.USD":"EASTSPRING INVESTMENTS ASIA REAL ESTATE MULTI ASSE \"A\" (USD) ACC","LU2226123227.USD":"Janus Henderson Horizon Asia-Pacific Property Income A5m USD","SG9999004360.SGD":"Nikko AM Shenton Thrift Fund SGD","LU2226123490.SGD":"Janus Henderson Horizon Asia-Pacific Property Income A5m SGD","SG9999013460.SGD":"LionGlobal Singapore Dividend Equity Fund SGD","BK6516":"银行与投资服务概念","SG9999016042.SGD":"Schroder Singapore Trust A Acc SGD","SG9999004253.SGD":"Nikko AM Shenton Global Property Securities SGD","LU2088748293.HKD":"EASTSPRING INVESTMENTS ASIA REAL ESTATE MULTI ASSE \"AHD\" (HKD) INC","SG9999013478.USD":"利安新加坡股息基金","SG9999000343.SGD":"Schroder Singapore Trust A Dis SGD","BK6523":"ESG概念","SG9999006266.SGD":"MANULIFE SINGAPORE EQUITY \"A\" (SGD) ACC","SG9999008742.SGD":"Eastspring Investments Unit Trusts - Singapore ASEAN Equity SGD","SG9999002679.SGD":"LionGlobal Singapore Balanced SGD","BK6110":"房地产经营公司","SG9999005177.SGD":"Legg Mason Martin Currie - Southeast Asia Trust A Acc SGD","LU2088748020.USD":"EASTSPRING INVESTMENTS ASIA REAL ESTATE MULTI ASSE \"ADM\" (USD) INC A","BK6139":"房地产运营公司","SG9999000475.SGD":"Aberdeen Standard Singapore Equity SGD","SG9999013486.USD":"LIONGLOBAL SINGAPORE DIVIDEND EQUITY (USD) INC A","LU1105468828.SGD":"Allianz Total Return Asian Equity AM DIS H2-SGD","LU0348814723.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"A\" (USD) INC  NC","SG9999002414.USD":"LIONGLOBAL SINGAPORE TRUST (USD) ACC","LU2088748376.SGD":"Eastspring Investments - Asia Real Estate Multi Asset Income Cl ASDM SGD-H","LU0532188223.SGD":"JPMorgan Funds - ASEAN Equity A (acc) SGD","LU0229494975.USD":"骏利亨德森亚太地产股票基金","SGXZ27511609.SGD":"NIKKO AM SINGAPORE DIVIDEND EQUITY \"SGD\" (SGD) ACC","SG9999003826.SGD":"日兴资管新加坡股息基金 SGD","LU1316543674.SGD":"Janus Henderson Horizon Asia-Pacific Property Income A3 SGD","9CI.SI":"凯德投资","LU0918141887.USD":"安联亚洲实际收益股票基金","SG9999001127.SGD":"United Singapore Growth Fund SGD","SG9999002406.SGD":"利安新加坡信托基金","SGXZ58947870.SGD":"LIONGLOBAL SINGAPORE DIVIDEND EQUITY (SGDHDG) INC"},"source_url":"https://simplywall.st/stocks/sg/real-estate-management-and-development/sgx-9ci/capitaland-investment-shares/news/does-capitaland-investment-limiteds-sgx9ci-weak-fundamentals","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2478642606","content_text":"CapitaLand Investment's (SGX:9CI) stock up by 7.0% over the past three months.   Given that the markets usually pay for the long-term financial health of a company, we wonder if the current momentum in the share price will keep up, given that the company's financials don't look very promising.      Specifically, we decided to study CapitaLand Investment's  ROE in this article.    Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested.  In simpler terms, it measures the profitability of a company in relation to shareholder's equity.  Check out our latest analysis for CapitaLand Investment  How Do You Calculate Return On Equity?  ROE 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 CapitaLand Investment is:1.9% = S$331m ÷ S$18b (Based on the trailing twelve months to June 2024). The 'return' is the yearly profit.  So, this means that for every SGD1 of its shareholder's investments, the company generates a profit of SGD0.02.   What Has ROE Got To Do With Earnings Growth?  Thus far, we have learned that ROE measures how efficiently a company is generating its profits.  Based on how much of its profits the company chooses to reinvest or \"retain\", we are then able to evaluate a company's future ability to generate profits.  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.  CapitaLand Investment's Earnings Growth And 1.9% ROE   It is quite clear that CapitaLand Investment's ROE is rather low.   Even when compared to the industry average of 3.5%, the ROE figure is pretty disappointing.   Given the circumstances, the significant decline in net income by 8.1% seen by CapitaLand Investment over the last five years is not surprising.  We reckon that there could also be other factors at play here.  For instance, the company has a very high payout ratio, or is faced with competitive pressures.     So, as a next step, we compared CapitaLand Investment's performance against the industry and were disappointed to discover that while the company has been shrinking its earnings, the industry has been growing its earnings at a rate of 2.0% over the last few years.   SGX:9CI Past Earnings Growth October 25th 2024 The basis for attaching value to a company is, to a great extent, tied to its earnings growth.  The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in.  By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await.    Is CapitaLand Investment fairly valued compared to other companies? These 3 valuation measures might help you decide.    Is CapitaLand Investment Efficiently Re-investing Its Profits?   CapitaLand Investment has a high three-year median payout ratio of 75% (that is, it is retaining 25% of its profits). This suggests that the company is paying most of its profits as dividends to its shareholders. This goes some way in explaining why its earnings have been shrinking.    With only very little left to reinvest into the business, growth in earnings is far from likely.     You can see the 3 risks we have identified for CapitaLand Investment by visiting our risks dashboard for free  on our platform here.   In addition, CapitaLand Investment has been paying dividends over a period of three years suggesting that keeping up dividend payments is preferred by the management even though earnings have been in decline.      Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 63%.   Still, forecasts suggest that CapitaLand Investment's future ROE will rise to 6.8% even though the the company's payout ratio is not expected to change by much.      Conclusion    On the whole, CapitaLand Investment's performance is quite a big let-down.      Because the company is not reinvesting much into the business, and given the low ROE, it's not surprising to see the lack or absence of growth in its earnings.       Having said that, looking at current analyst estimates, we found that the company's earnings growth rate is expected to see a huge improvement.     To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now 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.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":0,"commentSize":1,"repostSize":1,"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/2478642606"}