In This Article:
Examining how UOL Group Limited (SGX:U14) is performing as a company requires looking at more than just a years' earnings. Below, I will run you through a simple sense check to build perspective on how UOL Group is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its real estate industry peers.
See our latest analysis for UOL Group
Could U14 beat the long-term trend and outperform its industry?
U14's trailing twelve-month earnings (from 30 September 2019) of S$489m has jumped 30% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 0.3%, indicating the rate at which U14 is growing has accelerated. How has it been able to do this? Let's take a look at if it is solely due to industry tailwinds, or if UOL Group has seen some company-specific growth.
In terms of returns from investment, UOL Group has fallen short of achieving a 20% return on equity (ROE), recording 5.0% instead. Furthermore, its return on assets (ROA) of 2.6% is below the SG Real Estate industry of 3.1%, indicating UOL Group's are utilized less efficiently. However, its return on capital (ROC), which also accounts for UOL Group’s debt level, has increased over the past 3 years from 2.6% to 3.4%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 39% to 34% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Recent positive growth doesn’t necessarily mean it’s onwards and upwards for the company. I recommend you continue to research UOL Group to get a more holistic view of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for U14’s future growth? Take a look at our free research report of analyst consensus for U14’s outlook.
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Financial Health: Are U14’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 30 September 2019. This may not be consistent with full year annual report figures.
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.
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