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When Minmetals Land Limited's (HKG:230) announced its latest earnings (31 December 2018), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were Minmetals Land's average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not 230 actually performed well. Below is a quick commentary on how I see 230 has performed.
View our latest analysis for Minmetals Land
Were 230's earnings stronger than its past performances and the industry?
230's trailing twelve-month earnings (from 31 December 2018) of HK$935m has jumped 31% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 19%, indicating the rate at which 230 is growing has accelerated. What's enabled this growth? Well, let’s take a look at whether it is solely a result of industry tailwinds, or if Minmetals Land has seen some company-specific growth.
In terms of returns from investment, Minmetals Land has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. Furthermore, its return on assets (ROA) of 1.7% is below the HK Real Estate industry of 3.3%, indicating Minmetals Land's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Minmetals Land’s debt level, has increased over the past 3 years from 4.0% to 11%.
What does this mean?
Though Minmetals Land's past data is helpful, it is only one aspect of my investment thesis. While Minmetals Land has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research Minmetals Land 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 230’s future growth? Take a look at our free research report of analyst consensus for 230’s outlook.
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Financial Health: Are 230’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.