Examining Ban Leong Technologies Limited’s (SGX:B26) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess B26’s latest performance announced on 30 September 2017 and weight these figures against its longer term trend and industry movements. View our latest analysis for Ban Leong Technologies
How B26 fared against its long-term earnings performance and its industry
I prefer to use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This blend enables me to assess different stocks on a more comparable basis, using the most relevant data points. “For Ban Leong Technologies, its “, latest earnings is SGD3.6M, which compared to the previous year’s figure, has risen by a relatively unexciting 7.66%. Given that these figures may be fairly myopic, I’ve estimated an annualized five-year value for Ban Leong Technologies’s earnings, which stands at SGD1.6M. This means that, on average, Ban Leong Technologies has been able to gradually raise its earnings over the last few years as well.
What’s enabled this growth? Well, let’s take a look at whether it is merely because of an industry uplift, or if Ban Leong Technologies has experienced some company-specific growth. In the last few years, Ban Leong Technologies grew its bottom line faster than revenue by effectively controlling its costs. This has caused a margin expansion and profitability over time. Scanning growth from a sector-level, the SG electronic industry has been growing its average earnings by double-digit 21.81% in the past year, and a flatter 0.54% over the previous five years. This shows that any uplift the industry is enjoying, Ban Leong Technologies has not been able to leverage it as much as its industry peers.
What does this mean?
Ban Leong Technologies’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 Ban Leong Technologies gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Ban Leong Technologies to get a more holistic view of the stock by looking at:
1. Financial Health: Is B26’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.