VSTECS Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - VSTECS Bhd - Alpha Spread
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VSTECS Bhd
KLSE:VSTECS

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VSTECS Bhd
KLSE:VSTECS
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Price: 3.14 MYR -0.63% Market Closed
Market Cap: 1.1B MYR
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
VSTECS Bhd

Revenue
2.7B MYR
Cost of Revenue
-2.5B MYR
Gross Profit
155.8m MYR
Operating Expenses
-81.5m MYR
Operating Income
74.3m MYR
Other Expenses
-7.8m MYR
Net Income
66.5m MYR

Margins Comparison
VSTECS Bhd Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
MY
VSTECS Bhd
KLSE:VSTECS
1.1B MYR
6%
3%
2%
US
CDW Corp
NASDAQ:CDW
30.3B USD
22%
8%
5%
US
TD Synnex Corp
NYSE:SNX
10B USD
7%
2%
1%
US
Insight Enterprises Inc
NASDAQ:NSIT
8.1B USD
19%
5%
3%
ZA
Datatec Ltd
JSE:DTC
8B Zac
16%
2%
1%
CN
Unisplendour Corp Ltd
SZSE:000938
53.7B CNY
19%
5%
3%
US
Arrow Electronics Inc
NYSE:ARW
7B USD
12%
4%
2%
US
Avnet Inc
NASDAQ:AVT
4.7B USD
12%
4%
2%
CN
Shenzhen Huaqiang Industry Co Ltd
SZSE:000062
32.2B CNY
8%
4%
2%
JP
Canon Marketing Japan Inc
TSE:8060
605.9B JPY
33%
8%
6%
TW
WPG Holdings Ltd
TWSE:3702
125.6B TWD
4%
2%
1%
Country MY
Market Cap 1.1B MYR
Gross Margin
6%
Operating Margin
3%
Net Margin
2%
Country US
Market Cap 30.3B USD
Gross Margin
22%
Operating Margin
8%
Net Margin
5%
Country US
Market Cap 10B USD
Gross Margin
7%
Operating Margin
2%
Net Margin
1%
Country US
Market Cap 8.1B USD
Gross Margin
19%
Operating Margin
5%
Net Margin
3%
Country ZA
Market Cap 8B Zac
Gross Margin
16%
Operating Margin
2%
Net Margin
1%
Country CN
Market Cap 53.7B CNY
Gross Margin
19%
Operating Margin
5%
Net Margin
3%
Country US
Market Cap 7B USD
Gross Margin
12%
Operating Margin
4%
Net Margin
2%
Country US
Market Cap 4.7B USD
Gross Margin
12%
Operating Margin
4%
Net Margin
2%
Country CN
Market Cap 32.2B CNY
Gross Margin
8%
Operating Margin
4%
Net Margin
2%
Country JP
Market Cap 605.9B JPY
Gross Margin
33%
Operating Margin
8%
Net Margin
6%
Country TW
Market Cap 125.6B TWD
Gross Margin
4%
Operating Margin
2%
Net Margin
1%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
VSTECS Bhd Competitors

Country Company Market Cap ROE ROA ROCE ROIC
MY
VSTECS Bhd
KLSE:VSTECS
1.1B MYR
15%
9%
16%
17%
US
CDW Corp
NASDAQ:CDW
30.3B USD
59%
8%
22%
14%
US
TD Synnex Corp
NYSE:SNX
10B USD
8%
2%
10%
7%
US
Insight Enterprises Inc
NASDAQ:NSIT
8.1B USD
18%
5%
17%
11%
ZA
Datatec Ltd
JSE:DTC
8B Zac
9%
1%
15%
8%
CN
Unisplendour Corp Ltd
SZSE:000938
53.7B CNY
6%
2%
9%
7%
US
Arrow Electronics Inc
NYSE:ARW
7B USD
10%
3%
13%
9%
US
Avnet Inc
NASDAQ:AVT
4.7B USD
10%
4%
11%
8%
CN
Shenzhen Huaqiang Industry Co Ltd
SZSE:000062
32.2B CNY
5%
2%
9%
5%
JP
Canon Marketing Japan Inc
TSE:8060
605.9B JPY
9%
7%
11%
9%
TW
WPG Holdings Ltd
TWSE:3702
125.6B TWD
10%
3%
11%
5%
Country MY
Market Cap 1.1B MYR
ROE
15%
ROA
9%
ROCE
16%
ROIC
17%
Country US
Market Cap 30.3B USD
ROE
59%
ROA
8%
ROCE
22%
ROIC
14%
Country US
Market Cap 10B USD
ROE
8%
ROA
2%
ROCE
10%
ROIC
7%
Country US
Market Cap 8.1B USD
ROE
18%
ROA
5%
ROCE
17%
ROIC
11%
Country ZA
Market Cap 8B Zac
ROE
9%
ROA
1%
ROCE
15%
ROIC
8%
Country CN
Market Cap 53.7B CNY
ROE
6%
ROA
2%
ROCE
9%
ROIC
7%
Country US
Market Cap 7B USD
ROE
10%
ROA
3%
ROCE
13%
ROIC
9%
Country US
Market Cap 4.7B USD
ROE
10%
ROA
4%
ROCE
11%
ROIC
8%
Country CN
Market Cap 32.2B CNY
ROE
5%
ROA
2%
ROCE
9%
ROIC
5%
Country JP
Market Cap 605.9B JPY
ROE
9%
ROA
7%
ROCE
11%
ROIC
9%
Country TW
Market Cap 125.6B TWD
ROE
10%
ROA
3%
ROCE
11%
ROIC
5%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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