Goodland Group's (SGX:5PC) Shareholders May Want To Dig Deeper Than Statutory Profit
Goodland Group Limited's (SGX:5PC ) stock didn't jump after it announced some healthy earnings. We think that investors might be worried about some concerning underlying factors.
The Impact Of Unusual Items On Profit
Importantly, our data indicates that Goodland Group's profit received a boost of S$5.4m in unusual items, over the last year. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. When we crunched the numbers on thousands of publicly listed companies, we found that a boost from unusual items in a given year is often not repeated the next year. And that's as you'd expect, given these boosts are described as 'unusual'. We can see that Goodland Group's positive unusual items were quite significant relative to its profit in the year to September 2025. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power.
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Goodland Group.
Our Take On Goodland Group's Profit Performance
As we discussed above, we think the significant positive unusual item makes Goodland Group's earnings a poor guide to its underlying profitability. For this reason, we think that Goodland Group's statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company. The good news is that it earned a profit in the last twelve months, despite its previous loss. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. If you'd like to know more about Goodland Group as a business, it's important to be aware of any risks it's facing. For example, Goodland Group has 5 warning signs (and 2 which make us uncomfortable) we think you should know about.
This note has only looked at a single factor that sheds light on the nature of Goodland Group's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.
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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.