Analyzing ValueMax Group Limited’s (SGX:T6I) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess T6I’s recent performance announced on 31 December 2017 and compare these figures to its long-term trend and industry movements. See our latest analysis for ValueMax Group
How Did T6I’s Recent Performance Stack Up Against Its Past?
I prefer to use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This blend enables me to assess many different companies in a uniform manner using new information. For ValueMax Group, its most recent trailing-twelve-month earnings is S$19.09M, which, in comparison to last year’s figure, has increased by 22.71%. Since these figures may be relatively short-term, I’ve determined an annualized five-year value for T6I’s net income, which stands at S$12.26M This means generally, ValueMax Group has been able to gradually grow its earnings over the past few years as well.
What’s enabled this growth? Let’s take a look at whether it is solely due to an industry uplift, or if ValueMax Group has seen some company-specific growth. Over the past couple of years, ValueMax Group grew bottom-line, while its top-line declined, by efficiently managing its costs. This has caused to a margin expansion and profitability over time. Viewing growth from a sector-level, the SG consumer finance industry has been growing its average earnings by double-digit 11.08% in the prior year, and a more subdued 7.85% over the past five. This shows that any tailwind the industry is gaining from, ValueMax Group is able to leverage this to its advantage.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as ValueMax Group gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research ValueMax Group to get a more holistic view of the stock by looking at:
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1. Financial Health: Is T6I’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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2. Valuation: What is T6I worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether T6I is currently mispriced by the market.
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3. 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 2017. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.