In This Article:
Improvement in profitability and outperformance against the industry can be important characteristics in a stock for some investors. Below, I will assess ISDN Holdings Limited’s (SGX:I07) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.
See our latest analysis for ISDN Holdings
Could I07 beat the long-term trend and outperform its industry?
I07’s trailing twelve-month earnings (from 31 December 2018) of S$11m has jumped 15% 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 17%, indicating the rate at which I07 is growing has slowed down. What could be happening here? Well, let’s look at what’s occurring with margins and whether the whole industry is experiencing the hit as well.
In terms of returns from investment, ISDN Holdings has fallen short of achieving a 20% return on equity (ROE), recording 9.1% instead. Furthermore, its return on assets (ROA) of 4.2% is below the SG Electrical industry of 6.1%, indicating ISDN Holdings’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for ISDN Holdings’s debt level, has increased over the past 3 years from 12% to 12%.
What does this mean?
ISDN Holdings’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While ISDN Holdings has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I suggest you continue to research ISDN Holdings to get a more holistic view of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for I07’s future growth? Take a look at our free research report of analyst consensus for I07’s outlook.
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Financial Health: Are I07’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.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2018. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.