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For investors with a long-term horizon, assessing earnings trend over time and against industry benchmarks is more valuable than looking at a single earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Tse Sui Luen Jewellery (International) Limited (HKG:417) useful as an attempt to give more color around how Tse Sui Luen Jewellery (International) is currently performing.
View our latest analysis for Tse Sui Luen Jewellery (International)
How Did 417's Recent Performance Stack Up Against Its Past?
417's trailing twelve-month earnings (from 31 March 2019) of HK$54m has jumped 19% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -3.4%, indicating the rate at which 417 is growing has accelerated. How has it been able to do this? Well, let’s take a look at whether it is merely attributable to industry tailwinds, or if Tse Sui Luen Jewellery (International) has seen some company-specific growth.
In terms of returns from investment, Tse Sui Luen Jewellery (International) has fallen short of achieving a 20% return on equity (ROE), recording 5.0% instead. Furthermore, its return on assets (ROA) of 3.7% is below the HK Luxury industry of 5.8%, indicating Tse Sui Luen Jewellery (International)'s are utilized less efficiently. However, its return on capital (ROC), which also accounts for Tse Sui Luen Jewellery (International)’s debt level, has increased over the past 3 years from 7.5% to 14%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 80% to 73% over the past 5 years.
What does this mean?
Though Tse Sui Luen Jewellery (International)'s past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Tse Sui Luen Jewellery (International) 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 417’s future growth? Take a look at our free research report of analyst consensus for 417’s outlook.
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Financial Health: Are 417’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.