Chemical Industries (Far East) Limited (SGX:C05): Did It Outperform The Industry?
Measuring Chemical Industries (Far East) Limited's (SGX:C05) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess C05's recent performance announced on 30 September 2019 and compare these figures to its historical trend and industry movements.
Check out our latest analysis for Chemical Industries (Far East)
Have C05's earnings improved against past performances and the industry?
C05's trailing twelve-month earnings (from 30 September 2019) of S$11m has increased by 1.4% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -1.3%, indicating the rate at which C05 is growing has accelerated. What's enabled this growth? Let's take a look at whether it is solely attributable to an industry uplift, or if Chemical Industries (Far East) has seen some company-specific growth.
In terms of returns from investment, Chemical Industries (Far East) has fallen short of achieving a 20% return on equity (ROE), recording 8.9% instead. However, its return on assets (ROA) of 7.5% exceeds the SG Chemicals industry of 6.9%, indicating Chemical Industries (Far East) has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Chemical Industries (Far East)’s debt level, has declined over the past 3 years from 2.6% to 2.0%.
What does this mean?
Though Chemical Industries (Far East)'s past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? You should continue to research Chemical Industries (Far East) to get a more holistic view of the stock by looking at:
Financial Health: Are C05’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.
Valuation: What is C05 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether C05 is currently mispriced by the market.
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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