Does NetLink NBN Trust's (SGX:CJLU) Recent Share Price Performance Reflect Its Bleak Financial Prospects?

Simply Wall St.

17 Feb

NetLink NBN Trust's (SGX:CJLU) stock was mostly flat over the past week. However, its financials look weak which could potentially mean that its stock could show weakness in the future given that ...

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However, its financials look weak which could potentially mean that its stock could show weakness in the future given that ...</p>\n<a href=\"https://finance.yahoo.com/news/does-netlink-nbn-trusts-sgx-071826369.html\">Source Link</a>\n</div>\n</body></html>","source":"yahoofinance_sg","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta content=\"text/html; charset=utf-8\" http-equiv=\"Content-Type\"/>\n<meta content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\" name=\"viewport\"/>\n<meta content=\"telephone=no,email=no,address=no\" name=\"format-detection\"/>\n<title>Does NetLink NBN Trust's (SGX:CJLU) Recent Share Price Performance Reflect Its Bleak Financial Prospects?</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 NetLink NBN Trust's (SGX:CJLU) Recent Share Price Performance Reflect Its Bleak Financial Prospects?\n</h2>\n<h4 class=\"meta\">\n\n\n2025-02-17 15:18 GMT+8   <a href=\"https://finance.yahoo.com/news/does-netlink-nbn-trusts-sgx-071826369.html\"><strong>Simply Wall St.</strong></a>\n</h4>\n</header>\n<article>\n<div>\n<p>NetLink NBN Trust's (SGX:CJLU) stock was mostly flat over the past week. However, its financials look weak which could potentially mean that its stock could show weakness in the future given that ...</p>\n<a href=\"https://finance.yahoo.com/news/does-netlink-nbn-trusts-sgx-071826369.html\">Source Link</a>\n</div>\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4211","symbol_name":"区域性银行","start_time":0,"source_url":"https://finance.yahoo.com/news/does-netlink-nbn-trusts-sgx-071826369.html","article_id":"2512081915","we_media_id":null,"thumbnails":[],"rights":{"source":"yahoofinance_sg","url":"https://finance.yahoo.com/news/does-netlink-nbn-trusts-sgx-071826369.html","rn_cache_url":null,"customStyle":"","selectors":"article, body","filters":"","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2512081915","pubTimestamp":1739776706,"columns":[],"sourceInfo":{"source_id":"yahoofinance_sg","name":"Yahoo Finance"},"weMediaInfo":null,"summary":"NetLink NBN Trust's  stock was mostly flat over the past week. However, its financials look weak which could potentially mean that its stock could show weakness in the future given that stock performances are usually attached to a company's financial health in the long-term. Specifically, we decided to study NetLink NBN Trust's  ROE in this article.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.Return on Equity = Net Profit  ÷ Shareholders' Equity. A Side By Side comparison of NetLink NBN Trust's Earnings Growth And 3.8% ROE. NetLink NBN Trust's high three-year median payout ratio of 210% suggests that the company is paying out more to its shareholders than what it is ma","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4211":"区域性银行","CJLU.SI":"网联宽频信托","BK6513":"电信服务股","NBN":"东北银行","BK6017":"非传统电信运营商"},"translate_title":"NetLink NBN Trust（新交所股票代码：CJLU）最近的股价表现是否反映了其黯淡的财务前景？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NBN":1,"CJLU.SI":0.9},"content_text":"NetLink NBN Trust's (SGX:CJLU) stock was mostly flat over the past week. However, its financials look weak which could potentially mean that its stock could show weakness in the future given that stock performances are usually attached to a company's financial health in the long-term. Specifically, we decided to study NetLink NBN Trust's  ROE in this article. \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 See our latest analysis for NetLink NBN Trust \n How To 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 NetLink NBN Trust is:\n3.8% = S$92m ÷ S$2.5b (Based on the trailing twelve months to December 2024).\n The 'return' is the amount earned after tax over the last twelve months. That means that for every SGD1 worth of shareholders' equity, the company generated SGD0.04 in profit. \n What Has ROE Got To Do With Earnings Growth? \n We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes. \n A Side By Side comparison of NetLink NBN Trust's Earnings Growth And 3.8% ROE \n It is hard to argue that NetLink NBN Trust's ROE is much good in and of itself. Even compared to the average industry ROE of 9.9%, the company's ROE is quite dismal. However, the moderate 5.3% net income growth seen by NetLink NBN Trust over the past five years is definitely a positive. We reckon that there could be other factors at play here. For instance, the company has a low payout ratio or is being managed efficiently. \n As a next step, we compared NetLink NBN Trust's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 14% in the same period. \n\n\n\n  SGX:CJLU Past Earnings Growth February 17th 2025\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. Has the market priced in the future outlook for CJLU? You can find out in our latest intrinsic value infographic research report.  \n Is NetLink NBN Trust Making Efficient Use Of Its Profits? \n NetLink NBN Trust's high three-year median payout ratio of 210% suggests that the company is paying out more to its shareholders than what it is making. However, this hasn't really hampered its ability to grow as we saw earlier. That being said, the high payout ratio could be worth keeping an eye on in case the company is unable to keep up its current growth momentum. \n Besides, NetLink NBN Trust has been paying dividends over a period of seven years. This shows that the company is committed to sharing profits with its shareholders. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 192% of its profits over the next three years. Still, forecasts suggest that NetLink NBN Trust's future ROE will rise to 4.8% even though the the company's payout ratio is not expected to change by much. \n Conclusion \n On the whole, NetLink NBN Trust's performance is quite a big let-down. While the company has posted decent earnings growth, the company is retaining little to no profits and is reinvesting those profits at a low rate of return. This makes us doubtful if that growth could continue, especially if by any chance the business is faced with any sort of risk. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. \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.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"dataReport","news_rank":0,"symbols":[],"gpt_button":0}}}