Apex Investment PSC's (ADX:APEX) Soft Earnings Don't Show The Whole Picture

The market for Apex Investment PSC's (ADX:APEX) shares didn't move much after it posted weak earnings recently. Our analysis suggests that while the profits are soft, the foundations of the business are strong.

We've discovered 2 warning signs about Apex Investment PSC. View them for free.

How Do Unusual Items Influence Profit?

For anyone who wants to understand Apex Investment PSC's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by د.إ80m due to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. In the twelve months to March 2025, Apex Investment PSC had a big unusual items expense. All else being equal, this would likely have the effect of making the statutory profit look worse than its underlying earnings power.

Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Apex Investment PSC.

Our Take On Apex Investment PSC's Profit Performance

As we mentioned previously, the Apex Investment PSC's profit was hampered by unusual items in the last year. Based on this observation, we consider it possible that Apex Investment PSC's statutory profit actually understates its earnings potential! On the other hand, its EPS actually shrunk in the last twelve months. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. If you want to do dive deeper into Apex Investment PSC, you'd also look into what risks it is currently facing. You'd be interested to know, that we found 2 warning signs for Apex Investment PSC and you'll want to know about them.

This note has only looked at a single factor that sheds light on the nature of Apex Investment PSC's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. 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.