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Examining Meilleure Health International Industry Group Limited's (HKG:2327) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess 2327's latest performance announced on 31 December 2018 and weight these figures against its longer term trend and industry movements.
View our latest analysis for Meilleure Health International Industry Group
Did 2327's recent performance beat its trend and industry?
2327's trailing twelve-month earnings (from 31 December 2018) of HK$81m has increased by 0.6% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 21%, indicating the rate at which 2327 is growing has slowed down. Why could this be happening? Well, let's look at what's occurring with margins and whether the rest of the industry is feeling the heat.
In terms of returns from investment, Meilleure Health International Industry Group has fallen short of achieving a 20% return on equity (ROE), recording 9.9% instead. However, its return on assets (ROA) of 7.1% exceeds the HK Trade Distributors industry of 5.5%, indicating Meilleure Health International Industry Group has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Meilleure Health International Industry Group’s debt level, has increased over the past 3 years from 2.3% to 5.5%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 105% to 27% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Meilleure Health International Industry Group has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research Meilleure Health International Industry 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 2327’s future growth? Take a look at our free research report of analyst consensus for 2327’s outlook.
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Financial Health: Are 2327’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.