When ValueMax Group Limited (SGX:T6I) announced its most recent earnings (30 September 2017), I did two things: looked at its past earnings track record, then look at what is happening in the industry. Understanding how ValueMax Group performed requires a benchmark rather than trying to assess a standalone number at one point in time. Below is a quick commentary on how I see T6I has performed. View our latest analysis for ValueMax Group
Did T6I beat its long-term earnings growth trend and its industry?
To account for any quarterly or half-yearly updates, I 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 enables me to analyze different stocks in a uniform manner using the latest information. “For ValueMax Group, its “, latest earnings is SGD17.9M, which, against last year’s figure, has moved up by 29.03%. Since these values are somewhat short-term, I have created an annualized five-year figure for T6I’s earnings, which stands at SGD12.0M. This means on average, ValueMax Group has been able to consistently grow its earnings over the past couple of years as well.
What’s enabled this growth? Well, let’s take a look at if it is only because of industry tailwinds, or if ValueMax Group has seen some company-specific growth. Over the past few years, ValueMax Group grew bottom-line, while its top-line declined, by efficiently controlling its costs. This has caused to a margin expansion and profitability over time. Inspecting growth from a sector-level, the SG consumer finance industry has been growing its average earnings by double-digit 15.58% over the prior year, and a less exciting 7.73% over the previous few years. This means whatever uplift the industry is deriving benefit from, ValueMax Group is able to amplify this to its advantage.
What does this mean?
ValueMax Group’s track record can be a valuable insight into its earnings performance, but it certainly 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 better picture of the stock by looking at:
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.