In This Article:
Today I will examine Sunteck Realty Limited’s (NSE:SUNTECK) latest earnings update (31 December 2018) and compare these figures against its performance over the past couple of years, in addition to how the rest of SUNTECK’s industry performed. As a long-term investor, I find it useful to analyze the company’s trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time.
See our latest analysis for Sunteck Realty
Commentary On SUNTECK’s Past Performance
SUNTECK’s trailing twelve-month earnings (from 31 December 2018) of ₹2.2b has jumped 23% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 20%, indicating the rate at which SUNTECK is growing has accelerated. What’s the driver of this growth? Let’s take a look at if it is solely a result of an industry uplift, or if Sunteck Realty has experienced some company-specific growth.
In terms of returns from investment, Sunteck Realty has fallen short of achieving a 20% return on equity (ROE), recording 8.5% instead. However, its return on assets (ROA) of 6.7% exceeds the IN Real Estate industry of 3.4%, indicating Sunteck Realty has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Sunteck Realty’s debt level, has increased over the past 3 years from 5.0% to 13%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 103% to 20% over the past 5 years.
What does this mean?
Sunteck Realty’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While Sunteck Realty 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 Sunteck Realty to get a more holistic view of the stock by looking at:
-
Future Outlook: What are well-informed industry analysts predicting for SUNTECK’s future growth? Take a look at our free research report of analyst consensus for SUNTECK’s outlook.
-
Financial Health: Are SUNTECK’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.
-
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.