For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine Sunningdale Tech Ltd’s (SGX:BHQ) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers. Check out our latest analysis for Sunningdale Tech
Commentary On BHQ’s Past Performance
I like to use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend enables me to assess various companies on a more comparable basis, using the most relevant data points. “For Sunningdale Tech, its “, latest earnings is SGD45.1M, which, relative to the previous year’s level, has risen by 46.76%. Given that these figures may be fairly short-term, I’ve estimated an annualized five-year figure for Sunningdale Tech’s net income, which stands at SGD20.0M. This means that, generally, Sunningdale Tech has been able to consistently raise its earnings over the past few years as well.
What’s enabled this growth? Let’s take a look at if it is only attributable to industry tailwinds, or if Sunningdale Tech has seen some company-specific growth. In the past couple of years, Sunningdale Tech increased its bottom line faster than revenue by efficiently controlling its costs. This brought about a margin expansion and profitability over time. Inspecting growth from a sector-level, the SG machinery industry has been growing its average earnings by double-digit 45.72% in the past year, and a flatter 0.69% over the past five years. This shows that any uplift the industry is enjoying, Sunningdale Tech is capable of leveraging this to its advantage.
What does this mean?
Sunningdale Tech’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While Sunningdale Tech has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Sunningdale Tech to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for BHQ’s future growth? Take a look at our free research report of analyst consensus for BHQ’s outlook.
2. Financial Health: Is BHQ’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.