Mediaboss Marketing

While not a mind-blowing move, it is good to see that the AYO Technology Solutions Limited (JSE:AYO) share price has gained 17% in the last three months. But that cannot eclipse the less-than-impressive returns over the last three years. After all, the share price is down 42% in the last three years, significantly under-performing the market.

If the past week is anything to go by, investor sentiment for AYO Technology Solutions isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

Before we look at the performance, you might like to know that our analysis indicates that AYO is potentially undervalued!

AYO Technology Solutions isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last three years, AYO Technology Solutions saw its revenue grow by 2.8% per year, compound. Given it's losing money in pursuit of growth, we are not really impressed with that. Indeed, the stock dropped 12% over the last three years. Shareholders will probably be hoping growth picks up soon. But the real upside for shareholders will be if the company can start generating profits.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

This free interactive report on AYO Technology Solutions' balance sheet strength is a great place to start, if you want to investigate the stock further.

It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of AYO Technology Solutions, it has a TSR of 6.3% for the last 3 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

We're pleased to report that AYO Technology Solutions rewarded shareholders with a total shareholder return of 24% over the last year. That includes the value of the dividend. That gain actually surpasses the 2.1% TSR it generated (per year) over three years. The improving returns to shareholders suggests the stock is becoming more popular with time. It's always interesting to track share price performance over the longer term. But to understand AYO Technology Solutions better, we need to consider many other factors. For instance, we've identified 3 warning signs for AYO Technology Solutions (2 are a bit unpleasant) that you should be aware of.

Of course AYO Technology Solutions may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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

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.

Find out whether AYO Technology Solutions is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

Read this article:
Despite shrinking by R155m in the past week, AYO Technology Solutions (JSE:AYO) shareholders are still up 6.3% over 3 years - Simply Wall St

In 2022, technology is woven into nearly every aspect of our lives. And aside from the occasional case of carpal tunnel caused by excessive scrolling, were better because of it.

At least, educators seem to think so: According to Gartner, the majority of teachers (57%), principals (65%), and administrators (73%) think digital learning tools are more effective than non-digital tools for personalizing instruction and engaging students with school and learning[1]. Considering this, its essential for educators to embrace the virtual classroom in order to provide the highest quality learning experience possible for their students.

If youre a teacher or administrator whos interested in incorporating digital learning into your current strategy, but youre unsure what the best path forward is for your school, were here to help. In this explanatory guide, well provide you with everything you need to know about hybrid learning (a happy medium between virtual and traditional learning), including the benefits of this strategy, what kind of technology you need to get started, and tips for getting your schools district on board.

Hybrid learning is an educational strategy where classes are offered both in-person and online.

In truth, the exact definition of hybrid learning is different depending on the source; for example, some believe that hybrid learning is synonymous with blended learning[2], while others believe that hybrid learning refers to when a course occurs in-person and virtually synchronously[3]but more on that below.

Blended learning is a broad term that encompasses any educational strategy that combines face-to-face and virtual learning (or e-learning). For example, a professor gives an in-person lecture, then asks students to complete a computer-based training module to reinforce what they learned. However, thats just one example of blended learning; flex learning and the flipped classroom both belong to this concept as well[4].

The key difference between blended and hybrid learning is that the latter gives students more control over their learning experience, because they can choose to participate either in-person or online.

Another way to think about the distinction is this: With blended learning, the same students are learning both in-person and online, but with hybrid learning, the in-person and online students are different individuals.

The schedule and structure of hybrid learning classes varies significantly from one course to another (and from one school system to another), but the general idea remains the same.

There are many benefits to utilizing a hybrid learning modellets take a look at some of the most important ones.

The COVID-19 pandemic brought to light the importance of equipping students with ways to learn outside of the traditional classroom. And while in-person instruction is not going anywhere, the value of providing remote learning options is more apparent than ever.

For instance, not only does hybrid learning allow students to prioritize their mental and physical health when deciding how they will attend class, it also minimizes the effect of day-to-day disruptions (such as appointments or caretaker responsibilities), by enabling students to forgo their commute and log on remotely.

In some cases, it may also extend the geographical reach of education by providing individuals in remote areas educational opportunities they might not have otherwise.

In early 2022, the National Education Association (NEA) reported that 86% of its members say they have seen more educators leaving the profession or retiring early since the start of the COVID-19 pandemic[5]. This pattern of turnover is putting strain on those who are tasked with supporting an understaffed school.

And while there is a limit to the number of students who can comfortably learn in a physical classroom, hybrid learning can help by increasing class sizes. Thats not to say that hybrid learning is a substitute (pun intended) for a full staff. However, embracing this strategy will allow the teachers you do have to reach more students. And in fact, many high schools turned to a hybrid learning model when staffing shortages peaked in 2021[6].

At the top of this guide, we mentioned that the majority of teachers, principals, and administrators believe that digital learning tools are more effective than traditional tools for personalizing instruction. This is because learning management systems, as well as other e-learning tools, are often built with features that allow both students and teachers to customize the learning experience.

For example, some platforms have AI-based tutors that give learners hints based on their progress through a lesson. Personalized learner paths, which allow admins to assign a sequential set of modules to individual learners, are also a common feature of LMS.

Plus, LMS offer the ability to accommodate different learning styles by supporting a variety of course material formats including videos, quizzes, slides, and downloadable PDFs. There are also features that cater to social learning, including discussion forums, gamification elements such as leaderboards and polls, newsfeeds, and collaborative tools.

First, lets talk about software.

1. Learning management systems

Learning management systems (LMS) are a type of e-learning tool that allow educators to create custom courses, measure students knowledge through quizzes and tests, and track learners progress and performance over time with the help of reporting dashboards.

Currently, LMS are the most popular tool used by educators, and in fact, Gartner predicts that by 2025, 75% of all K-12 organizations globally will use an LMS to manage in-person and remote classroom activities[8].

A course as seen by a learner in Schoology (Source)

2. Virtual classroom platforms

A subcategory of learning management systems, virtual classroom platforms offer features similar to that of an LMS, but with the addition of conferencing and collaboration capabilities. These additions are particularly helpful for hybrid learning because they enable remote students to participate in classes live (as opposed to watching a recording of it later on).

And speaking of engaging students, check out this short video:

3. Video conferencing software

Video conferencing tools are a form of collaboration software that allow users to hold face-to-face meetings while in separate locations. These tools also allow users to screen share, live chat, and virtual whiteboard.

Computers

Students will need to have a laptop or desktop computer in order to access whatever learning platform your school chooses. There are a few ways you can approach this depending on your schools budget and students age range:

A webcam or video recorder

Teachers will need a video camera of some sort in order to stream their lectures. In some cases, the computer or laptop theyre using may have a webcam that will suffice. If your school has the budget available, we suggest investing in a smart video camera that has a 360-degree view and a microphone system built in.

Interactive whiteboard

More of a nice-to-have than an essential, an interactive whiteboard is a tool that can revolutionize your classroom. Interactive whiteboards (also called smart boards) are flat-panel displays that allow teachers to project and interact with visual aids from their computer such as images, graphs, 3D models, and videos.

Embracing hybrid learning is the key to offering both an engaging and accessible learning experience for your students. In this guide, weve covered all of the basics of hybrid learning, including what it is, its benefits, and the tools you need to get started.

If youre interested in kicking off a hybrid learning strategy at your school, you can start measuring the feasibility by answering the following questions:

And finally, check out these related resources for more information related to tech in education:

Sources

Note: The applications mentioned in this article are examples to show a feature in context and are not intended as endorsements or recommendations. They have been obtained from sources believed to be reliable at the time of publication.

Follow this link:
What is Hybrid Learning? A Look at the Future of Learning - Software Advice

We think that it's fair to say that the possibility of finding fantastic multi-year winners is what motivates many investors. Mistakes are inevitable, but a single top stock pick can cover any losses, and so much more. For example, the Birlasoft Limited (NSE:BSOFT) share price is up a whopping 312% in the last three years, a handsome return for long term holders. Then again, the 9.1% share price decline hasn't been so fun for shareholders.

While the stock has fallen 6.3% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

See our latest analysis for Birlasoft

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 flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Birlasoft was able to grow its EPS at 26% per year over three years, sending the share price higher. In comparison, the 60% per year gain in the share price outpaces the EPS growth. This indicates that the market is feeling more optimistic on the stock, after the last few years of progress. That's not necessarily surprising considering the three-year track record of earnings growth.

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

We know that Birlasoft has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Birlasoft will grow revenue in the future.

It is important to consider the total shareholder return, as well as the share price return, for any given stock. 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. As it happens, Birlasoft's TSR for the last 3 years was 330%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

While the broader market gained around 5.8% in the last year, Birlasoft shareholders lost 26% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 39%, 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. To that end, you should be aware of the 2 warning signs we've spotted with Birlasoft .

But note: Birlasoft may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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

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.

Find out whether Birlasoft is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

See the rest here:
Birlasoft (NSE:BSOFT) sheds 6.3% this week, as yearly returns fall more in line with earnings growth - Simply Wall St

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding 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. With that in mind, we've noticed some promising trends at Opera (NASDAQ:OPRA) so let's look a bit deeper.

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 Opera:

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

0.023 = US$23m (US$1.1b - US$56m) (Based on the trailing twelve months to June 2022).

Thus, Opera has an ROCE of 2.3%. Ultimately, that's a low return and it under-performs the Software industry average of 10%.

Check out our latest analysis for Opera

Above you can see how the current ROCE for Opera 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 report on analyst forecasts for the company.

We're glad to see that ROCE is heading in the right direction, even if it is still low at the moment. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 2.3%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 68%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed.

In summary, it's great to see that Opera can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. Astute investors may have an opportunity here because the stock has declined 59% in the last three years. That being the case, research into the company's current valuation metrics and future prospects seems fitting.

On the other side of ROCE, we have to consider valuation. That's why we have a FREE intrinsic value estimation on our platform that is definitely worth checking out.

While Opera 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.

Find out whether Opera is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

Read more here:
Returns At Opera (NASDAQ:OPRA) Are On The Way Up - Simply Wall St

The underwhelming share price performance of PaySauce Limited (NZSE:PYS) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 22 September 2022 could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for PaySauce

According to our data, PaySauce Limited has a market capitalization of NZ$41m, and paid its CEO total annual compensation worth NZ$213k over the year to March 2022. That's a notable increase of 19% on last year. Notably, the salary of NZ$213k is the entirety of the CEO compensation.

In comparison with other companies in the industry with market capitalizations under NZ$335m, the reported median total CEO compensation was NZ$277k. So it looks like PaySauce compensates Asantha Wijeyeratne in line with the median for the industry. Furthermore, Asantha Wijeyeratne directly owns NZ$8.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 84% of total compensation represents salary, while the remainder of 16% is other remuneration. At the company level, PaySauce pays Asantha Wijeyeratne solely through a salary, preferring to go down a conventional route. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Over the past three years, PaySauce Limited has seen its earnings per share (EPS) grow by 47% per year. It achieved revenue growth of 60% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

With a total shareholder return of -37% over three years, PaySauce Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

PaySauce pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 3 warning signs for PaySauce that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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.

Find out whether PaySauce is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

More here:
It's Probably Less Likely That PaySauce Limited's (NZSE:PYS) CEO Will See A Huge Pay Rise This Year - Simply Wall St