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Examining Asia Standard International Group Limited's (SEHK:129) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess 129's latest performance announced on 31 March 2019 and compare these figures to its longer term trend and industry movements.
View our latest analysis for Asia Standard International Group
Despite a decline, did 129 underperform the long-term trend and the industry?
129's trailing twelve-month earnings (from 31 March 2019) of HK$1.4b has declined by -5.1% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 7.2%, indicating the rate at which 129 is growing has slowed down. Why is this? Well, let's look at what's occurring with margins and if the rest of the industry is feeling the heat.
In terms of returns from investment, Asia Standard International Group has fallen short of achieving a 20% return on equity (ROE), recording 7.1% instead. However, its return on assets (ROA) of 4.8% exceeds the HK Real Estate industry of 2.8%, indicating Asia Standard International Group has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Asia Standard International Group’s debt level, has increased over the past 3 years from 3.3% to 3.4%.
What does this mean?
Though Asia Standard International Group's past data is helpful, it is only one aspect of my investment thesis. In some cases, companies that endure a prolonged period of decline in earnings are undergoing some sort of reinvestment phase However, if the whole industry is struggling to grow over time, it may be a signal of a structural shift, which makes Asia Standard International Group and its peers a riskier investment. I recommend you continue to research Asia Standard International Group to get a better picture of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for 129’s future growth? Take a look at our free research report of analyst consensus for 129’s outlook.
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Financial Health: Are 129’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
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Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.