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Assessing Swire Properties Limited's (HKG:1972) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess 1972's latest performance announced on 31 December 2018 and evaluate these figures to its historical trend and industry movements.
See our latest analysis for Swire Properties
Commentary On 1972's Past Performance
1972's trailing twelve-month earnings (from 31 December 2018) of HK$29b has declined by -16% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 29%, indicating the rate at which 1972 is growing has slowed down. Why could this be happening? Well, let’s take a look at what’s occurring with margins and whether the rest of the industry is experiencing the hit as well.
In terms of returns from investment, Swire Properties has fallen short of achieving a 20% return on equity (ROE), recording 10% instead. However, its return on assets (ROA) of 8.8% exceeds the HK Real Estate industry of 3.3%, indicating Swire Properties has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Swire Properties’s debt level, has declined over the past 3 years from 3.8% to 3.0%.
What does this mean?
Swire Properties's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that are profitable, but have unpredictable earnings, can have many factors influencing its business. You should continue to research Swire Properties 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 1972’s future growth? Take a look at our free research report of analyst consensus for 1972’s outlook.
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Financial Health: Are 1972’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.
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.