Category: 3. Business

• Oruka Therapeutics recently reported third quarter 2025 results, noting a net loss of US$30.28 million and closed a substantial shelf registration of approximately US$756 million for common stock.
• Positive interim Phase 1 results for ORKA-001 in psoriasis, together with US$180 million in PIPE financing, have strengthened Oruka’s ability to advance multiple clinical trials and extend its cash runway past key milestones.
• We’ll explore how encouraging Phase 1 efficacy data for ORKA-001 underpins a shifting investment narrative for Oruka Therapeutics.

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What Is Oruka Therapeutics’ Investment Narrative?

For those looking at Oruka Therapeutics, the investment story hinges on belief in the company’s targeted therapies for autoimmune and inflammatory diseases. The positive interim Phase 1 results for ORKA-001 have set a new tone for the short-term, with efficacy signals and an extended dosing window potentially giving Oruka an edge if these results hold up in Phase 2 trials. Coupled with the recent US$180 million PIPE financing and the US$756 million shelf registration, there’s fresh confidence that Oruka’s cash position is strong enough to see it through upcoming clinical milestones. However, the business is still running at a loss with no revenue and a young management team, so any setback in clinical progress or further dilution could quickly re-focus attention on risk rather than opportunity. The news flow gives investors new reasons for optimism, but it also sharpens the spotlight on execution in the next year.

But, if management’s short tenure raises questions, investors should weigh the implications for continuity and focus.

In light of our recent valuation report, it seems possible that Oruka Therapeutics is trading beyond its estimated value.

Exploring Other Perspectives

You’ll find two fair value estimates from the Simply Wall St Community for Oruka, ranging from US$4.62 to US$46.20. Community members are weighing high clinical hopes against ongoing losses and frequent capital raisings, and their valuation views reflect these sharply different outlooks. Consider how these opinions and emerging risks could impact the company’s journey.

Explore 2 other fair value estimates on Oruka Therapeutics – why the stock might be worth less than half the current price!

Build Your Own Oruka Therapeutics Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes – extraordinary investment returns rarely come from following the herd.

• A great starting point for your Oruka Therapeutics research is our analysis highlighting 5 important warning signs that could impact your investment decision.
• Our free Oruka Therapeutics research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Oruka Therapeutics’ overall financial health at a glance.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

• At its recent Investor Day, Chevron unveiled a long-term roadmap targeting more than 10% annual free cash flow growth, US$10–20 billion in annual share buybacks through 2030, and entry into supplying natural gas-fired power for AI data centers, with its first project set for West Texas by 2027.
• This marks a significant push by Chevron to build shareholder value while diversifying into new energy segments aligned with accelerating demand for data center power fueled by AI adoption.
• We’ll explore how Chevron’s ambitious stock buyback plan and expansion into AI-driven energy solutions may alter its investment outlook.

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Chevron Investment Narrative Recap

To be a Chevron shareholder, you need confidence in the company’s ability to sustain oil and gas cash flows amid the energy transition and capitalize on production growth and efficiency gains as outlined in its 2030 roadmap. The recent announcement of leadership changes in Chevron’s finance team, notably the appointment of Amit R. Ghai as Controller effective March 2026, is unlikely to materially affect the company’s near-term catalysts, namely, integration of the Hess acquisition and execution on cost reductions, or meaningfully shift its largest risk, long-term oil demand pressure and slow diversification.

Among recent milestones, Chevron’s outlined share buyback target of US$10–20 billion per year to 2030 stands out. This ambitious capital return plan is most relevant when assessing the company’s ability to deliver against its free cash flow growth targets and maintain high shareholder returns, especially as it addresses the evolving energy mix.
Despite these strengths, investors should also be aware that unlike revenue growth, Chevron’s relative lack of rapid diversification leaves it exposed if…

Read the full narrative on Chevron (it’s free!)

Chevron’s outlook anticipates $196.0 billion in revenue and $21.8 billion in earnings by 2028. This scenario depends on a 1.2% annual revenue growth rate and a $8.1 billion increase in earnings from the current $13.7 billion.

Uncover how Chevron’s forecasts yield a $172.04 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members offered 27 individual fair value estimates for Chevron, spanning US$125.69 to US$325.49 per share. While many anticipate production growth and cost reductions, opinions can differ widely, consider how slow movement into renewables may shape Chevron’s long-term resilience.

Explore 27 other fair value estimates on Chevron – why the stock might be worth 20% less than the current price!

Build Your Own Chevron Narrative

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
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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.

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If you’re looking for a multi-bagger, there’s a few things to keep an eye out for. Firstly, we’d want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. So when we looked at the ROCE trend of Kencana Agri (SGX:BNE) we really liked what we saw.

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For those who don’t know, ROCE is a measure of a company’s yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Kencana Agri:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)

0.24 = US$46m ÷ (US$290m – US$96m) (Based on the trailing twelve months to June 2025).

So, Kencana Agri has an ROCE of 24%. In absolute terms that’s a great return and it’s even better than the Food industry average of 13%.

View our latest analysis for Kencana Agri

Above you can see how the current ROCE for Kencana Agri compares to its prior returns on capital, but there’s only so much you can tell from the past. If you’re interested, you can view the analysts predictions in our free analyst report for Kencana Agri .

Kencana Agri is showing promise given that its ROCE is trending up and to the right. The figures show that over the last five years, ROCE has grown 107% whilst employing roughly the same amount of capital. So our take on this is that the business has increased efficiencies to generate these higher returns, all the while not needing to make any additional investments. On that front, things are looking good so it’s worth exploring what management has said about growth plans going forward.

As discussed above, Kencana Agri appears to be getting more proficient at generating returns since capital employed has remained flat but earnings (before interest and tax) are up. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence.

Kencana Agri does come with some risks though, we found 3 warning signs in our investment analysis, and 1 of those is a bit concerning…

High returns are a key ingredient to strong performance, so check out our free list ofstocks earning high returns on equity with solid balance sheets.

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.

Reinsurance Group of America (RGA) has captured investor interest after publishing its latest study estimating a 3.5% reduction in US mortality by 2045, attributed to widespread adoption of GLP-1 medications. This analysis offers fresh insight on long-term health trends shaping the insurance sector.

See our latest analysis for Reinsurance Group of America.

RGA’s fresh research on GLP-1 medications comes after their newly opened office in Midtown Manhattan, signaling both strategic growth and a strong operational presence. While the past year has brought a -17.1% total shareholder return, the stock has still delivered an impressive 82.9% total return over five years. This suggests that long-term momentum remains intact even if recent price action has softened.

If you’re interested in what’s working for other insurance and financials leaders, it’s the perfect time to check out fast growing stocks with high insider ownership.

With RGA’s long-term performance outpacing recent setbacks and its shares trading at a notable discount to analyst price targets, the key question is whether investors are overlooking future upside or if potential growth is already reflected in the current price.

The most closely followed narrative now sets fair value for Reinsurance Group of America at $236.89, well ahead of the last closing price of $188.71. The current fair value points to a significant gap in expectations, and sharp focus falls on what is driving confidence behind this premium.

The company’s leadership in digital underwriting solutions and customized reinsurance products, bolstered by data analytics and exclusive arrangements, enhances efficiency and pricing power, which is likely to improve net margins and generate higher earnings as these tech-enabled capabilities scale.

Read the complete narrative.

What secret sauce does this popular narrative see in RGA’s fundamentals? There is a quantum leap projected in profits, with digital and global expansion fueling surging margins. Want to know which assumptions are pushing its value to new highs? Uncover the blockbuster growth projections and hidden catalysts driving this valuation surprise.

Result: Fair Value of $236.89 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, persistent volatility in U.S. life claims and rising healthcare costs could temper RGA’s projected earnings momentum, which may challenge consensus expectations.

Find out about the key risks to this Reinsurance Group of America narrative.

If you want to see the numbers for yourself and shape your own view, you can build your personal narrative in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Reinsurance Group of America.

Don’t wait on the sidelines while fresh opportunities pass by. Use the Simply Wall Street Screener to pinpoint investments with real upside potential and unique growth stories.

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.

Companies discussed in this article include RGA.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

What are the early trends we should look for to identify a stock that could multiply in value over the long term? Typically, we’ll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. Ultimately, this demonstrates that it’s a business that is reinvesting profits at increasing rates of return. So on that note, IFCA MSC Berhad (KLSE:IFCAMSC) looks quite promising in regards to its trends of return on capital.

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If you haven’t worked with ROCE before, it measures the ‘return’ (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on IFCA MSC Berhad is:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)

0.14 = RM18m ÷ (RM154m – RM30m) (Based on the trailing twelve months to June 2025).

Thus, IFCA MSC Berhad has an ROCE of 14%. That’s a relatively normal return on capital, and it’s around the 13% generated by the Software industry.

View our latest analysis for IFCA MSC Berhad

Historical performance is a great place to start when researching a stock so above you can see the gauge for IFCA MSC Berhad’s ROCE against it’s prior returns. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of IFCA MSC Berhad.

IFCA MSC Berhad’s ROCE growth is quite impressive. Looking at the data, we can see that even though capital employed in the business has remained relatively flat, the ROCE generated has risen by 5,779% over the last five years. So our take on this is that the business has increased efficiencies to generate these higher returns, all the while not needing to make any additional investments. The company is doing well in that sense, and it’s worth investigating what the management team has planned for long term growth prospects.

To bring it all together, IFCA MSC Berhad has done well to increase the returns it’s generating from its capital employed. And since the stock has fallen 21% over the last five years, there might be an opportunity here. That being the case, research into the company’s current valuation metrics and future prospects seems fitting.

One more thing, we’ve spotted 3 warning signs facing IFCA MSC Berhad that you might find interesting.

If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity.

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.

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. If you see this, it typically means it’s a company with a great business model and plenty of profitable reinvestment opportunities. Having said that, from a first glance at Riverview Rubber Estates Berhad (KLSE:RVIEW) we aren’t jumping out of our chairs at how returns are trending, but let’s have a deeper look.

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For those that aren’t sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on Riverview Rubber Estates Berhad is:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)

0.03 = RM12m ÷ (RM405m – RM4.2m) (Based on the trailing twelve months to June 2025).

Thus, Riverview Rubber Estates Berhad has an ROCE of 3.0%. In absolute terms, that’s a low return and it also under-performs the Food industry average of 9.8%.

View our latest analysis for Riverview Rubber Estates Berhad

While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you’re interested in investigating Riverview Rubber Estates Berhad’s past further, check out this free graph covering Riverview Rubber Estates Berhad’s past earnings, revenue and cash flow.

In terms of Riverview Rubber Estates Berhad’s historical ROCE trend, it doesn’t exactly demand attention. Over the past five years, ROCE has remained relatively flat at around 3.0% and the business has deployed 32% more capital into its operations. This poor ROCE doesn’t inspire confidence right now, and with the increase in capital employed, it’s evident that the business isn’t deploying the funds into high return investments.

In conclusion, Riverview Rubber Estates Berhad has been investing more capital into the business, but returns on that capital haven’t increased. Since the stock has gained an impressive 44% over the last five years, investors must think there’s better things to come. However, unless these underlying trends turn more positive, we wouldn’t get our hopes up too high.

Riverview Rubber Estates Berhad does come with some risks though, we found 3 warning signs in our investment analysis, and 1 of those is potentially serious…

While Riverview Rubber Estates Berhad isn’t earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.

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.

By Amara Omeokwe

 

Former Federal Reserve Governor Adriana Kugler, whose abrupt resignation allowed President Donald Trump to install an ally at the US central bank, violated Fed ethics rules and was subject to an internal probe when she stepped down in August, documents released Saturday showed.

 

In her final weeks at the Fed, Kugler sought to address a problem with her financial holdings, but Chair Jerome Powell denied her request for a necessary waiver ahead of the central bank’s July 29-30 policy meeting, according to a Fed official. She skipped the meeting and announced her resignation days later.

 
 

The Office of Government Ethics on Saturday released Kugler’s latest financial disclosures, which included previously undisclosed trading in multiple individual stocks in 2024 — some of which occurred during the Fed’s blackout period — in violation of the agency’s ethics rules. 

 

Fed ethics officials referred the matter to the agency’s inspector general earlier this year, the form showed. They also declined to certify the disclosures, which Kugler filed about a month after her resignation. An IG spokesman said Saturday that an investigation is ongoing.

 

Kugler’s resignation gave Trump an earlier-than-expected opportunity to fill a slot on the Fed’s board in the midst of his intense pressure campaign urging policymakers to drastically lower interest rates. The opening ultimately went to Trump adviser Stephen Miran, who took an unpaid leave of absence from his post as chair of the White House Council of Economic Advisers and has called repeatedly for rapid rate cuts.

 

Kugler, who was appointed to the Fed in September 2023 by President Joe Biden, declined to comment.

 

The former Fed governor announced on Aug. 1 that she would step down effective Aug. 8 — nearly six months before her term was set to end — without citing a reason and after she missed the central bank’s July meeting. At the time, the Fed said her absence was due to a “personal matter.”

 

Ahead of that meeting, Kugler sought permission to conduct transactions to address what the Fed official described as impermissible financial holdings. It wasn’t immediately clear which holdings were involved in that request.

 

According to the official, Kugler asked for a waiver to rules requiring top Fed officials to obtain clearance before conducting certain financial transactions and prohibiting them from trading during so-called blackout periods that straddle their policy meetings. Powell denied the request.

 

Prohibited trades 

It wasn’t the first time Kugler had run afoul of the Fed’s ethics rules. She acknowledged in disclosures last year that she violated prohibitions on trading when her husband executed several stock trades. 

 

Kugler said at the time that her spouse made the purchases without her knowledge. The shares were later divested and Kugler was deemed in compliance with applicable laws and regulations, according to the disclosures.

 

The newly released documents showed previously undisclosed trading in 2024 in individual stocks — which is prohibited for Fed officials and their immediate family members — including Materialise NV, Southwest Airlines, Cava Group, Apple Inc. and Caterpillar.

 

Some of the trades were also executed during blackout periods, when transactions are prohibited.

 

That included the purchase of Cava shares on March 13, 2024, days ahead of a March 19-20 meeting and the sale of Southwest shares on April 29, 2024, on the eve of the Fed’s April 30-May 1 gathering. The disclosure also lists several fund transactions that fell within blackout periods. 

 

A footnote connected to the Jan. 2, 2024, sale of Materialise NV shares read: “Consistent with her September 15, 2024, disclosure, certain trading activity was carried out by Dr. Kugler’s spouse, without Dr. Kugler’s knowledge and she affirms that her spouse did not intend to violate any rules or policies.”

 

Financial disclosure 

The disclosure covered calendar years 2024 and 2025 through her resignation. Top Fed officials are required to submit disclosures annually and after leaving the central bank, and to report periodic financial transactions. 

 

A spokesperson for the Fed’s Office of Inspector General on Saturday confirmed the office received a referral from the board’s ethics section related to Kugler’s filing.

 

“We have opened an investigation and, consistent with our practice, we are unable to comment further until our investigation is closed,” the person said.

 

Powell introduced tougher restrictions on investing and trading for policymakers and senior staff at the central bank in 2022. That followed revelations of unusual trading activity during 2020 by several senior officials.

 

Boston Fed President Eric Rosengren and Dallas Fed chief Robert Kaplan each announced their early retirement after the revelations, with Rosengren citing ill health. The Fed’s internal watchdog ultimately cleared the pair of legal wrongdoing, but chastised them for undermining public confidence in the central bank.

 

The new rules, which the Fed said at the time were aimed at supporting the public’s confidence in the impartiality and integrity of policymakers, boosted financial disclosure requirements, among other measures.

 

Senator Elizabeth Warren, a Democrat from Massachusetts who has long called for stricter ethics rules at the central bank, released a statement Saturday calling for bipartisan legislation “to make the Fed more transparent and accountable.”

 

The latest scandal “makes clear that the Fed still doesn’t have the guardrails or culture of accountability the American people expect,” Senate Banking Committee Chair Tim Scott said in a statement.

 

“The next Fed Chair must restore integrity, strengthen transparency, and end the pattern of insiders playing by their own rules,” he added.

Henry Schein (HSIC) just lifted its 2025 sales growth guidance, signaling management’s confidence after reporting stronger sales and net income for the quarter compared to last year. This outlook could prompt a closer look from investors.

See our latest analysis for Henry Schein.

Following the upbeat sales and earnings update, Henry Schein’s share price has climbed 12.9% over the past month, signaling renewed momentum after a year of gradual gains. Despite this recent boost, the long-term total shareholder return remains just modestly positive, which hints there is still room for the valuation story to play out.

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Yet with Henry Schein’s shares now enjoying a solid rally and analyst targets still offering only a moderate premium, the key question remains: is there value left to unlock, or has the market already priced in future growth?

With Henry Schein’s most widely followed narrative setting fair value at $75.15, the current price of $71.43 suggests modest upside could remain. The stage is set by ongoing operational changes and improved momentum, fueling debate among market watchers.

The company is experiencing strong growth in high-margin businesses such as Specialty Products, Technology, and private-label offerings, and expects over 50% of non-GAAP operating income to come from these segments. This supports structurally higher gross margins and is likely to drive earnings expansion. Investments in digital workflow, AI solutions, and integrated cloud-based practice management platforms are accelerating recurring SaaS revenues and client retention. Henry Schein is positioned to benefit from the ongoing digital transformation of healthcare, which should support both revenue growth and improved margins.

Read the complete narrative.

Curious about the numbers driving this narrative? The forecast hinges on a blend of margin upgrades, aggressive digital investment, and surprising long-term financial assumptions. What bold moves tip the valuation scales? Dive in to uncover the real foundation behind the headline price target.

Result: Fair Value of $75.15 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, persistent pricing pressures and ongoing staffing shortages could easily cap both Henry Schein’s earnings trajectory as well as its ambitious long-term outlook.

Find out about the key risks to this Henry Schein narrative.

If this outlook does not match your own thinking, or you prefer to examine the numbers yourself, you can shape your own view of Henry Schein’s prospects in just a few minutes. Do it your way

A great starting point for your Henry Schein research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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.

Companies discussed in this article include HSIC.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

• In the past week, Arista Networks reported third-quarter results with revenue of US$2.31 billion and net income of US$853 million, as well as guided fourth-quarter revenue between US$2.3 billion and US$2.4 billion.

• While the company continues to see substantial demand for its AI networking solutions, management pointed to ongoing supply chain constraints and longer lead times as major growth hurdles in the near term.

• We’ll examine what the supply chain challenges highlighted by management could mean for Arista Networks’ long-term growth narrative.

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To believe in Arista Networks, you must have conviction in the company’s leadership in AI-driven networking and its ability to capture share as hyperscalers and enterprises upgrade their infrastructure. The latest quarterly results confirm customer demand remains robust, particularly for AI infrastructure, but supply chain delays and component shortages continue to be the single most important near-term headwind. For now, this challenge appears to be limiting growth but has not altered the core demand catalyst central to Arista’s story.

Among recent announcements, management’s updated revenue guidance for the fourth quarter, US$2.3 billion to US$2.4 billion, directly aligns with how supply constraints are tempering near-term growth, even as demand outpaces current delivery capabilities. This guidance makes clear that Arista’s strongest catalyst, the AI networking cycle, is being held back in the short term by execution risks surrounding supply chain and inventory management.

By contrast, some investors may be surprised at how even healthy backlog isn’t a guarantee of smoother profitability if…

Read the full narrative on Arista Networks (it’s free!)

Arista Networks’ outlook anticipates $13.6 billion in revenue and $5.4 billion in earnings by 2028. This scenario implies a 19.5% annual revenue growth rate and a $2.1 billion increase in earnings from the current $3.3 billion level.

Uncover how Arista Networks’ forecasts yield a $163.87 fair value, a 25% upside to its current price.

While consensus views highlight current supply chain hurdles, the most optimistic analysts were projecting US$15.4 billion in revenue by 2028 before the recent news. If you focus on rapidly growing recurring software revenue and believe these high targets are realistic, your outlook may be much more upbeat than others’. As recent announcements evolve, it’s important to remember your perspective can shift as narratives and numbers change.

Explore 18 other fair value estimates on Arista Networks – why the stock might be worth 14% less than the current price!

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

Our daily scans reveal stocks with breakout potential. Don’t miss this chance:

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.

Companies discussed in this article include ANET.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

It’s easy to match the overall market return by buying an index fund. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. Investors in Y.S.P. Southeast Asia Holding Berhad (KLSE:YSPSAH) have tasted that bitter downside in the last year, as the share price dropped 14%. That’s disappointing when you consider the market returned 4.1%. At least the damage isn’t so bad if you look at the last three years, since the stock is down 8.2% in that time.

Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they’ve been consistent with returns.

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To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it’s a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Unfortunately Y.S.P. Southeast Asia Holding Berhad reported an EPS drop of 31% for the last year. This fall in the EPS is significantly worse than the 14% the share price fall. So the market may not be too worried about the EPS figure, at the moment — or it may have expected earnings to drop faster.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We’re pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It’s always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. This free interactive report on Y.S.P. Southeast Asia Holding Berhad’s earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It’s fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Y.S.P. Southeast Asia Holding Berhad the TSR over the last 1 year was -9.5%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.

While the broader market gained around 4.1% in the last year, Y.S.P. Southeast Asia Holding Berhad shareholders lost 9.5% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn’t be so upset, since they would have made 1.4%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Y.S.P. Southeast Asia Holding Berhad is showing 2 warning signs in our investment analysis , you should know about…

We will like Y.S.P. Southeast Asia Holding Berhad better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges.

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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.