Assessing Hebron Technology Co Ltd’s (NASDAQ:HEBT) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess HEBT’s recent performance announced on 31 December 2016 and evaluate these figures to its long-term trend and industry movements. Check out our latest analysis for Hebron Technology
Commentary On HEBT’s Past Performance
For the most up-to-date info, I use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This blend allows me to assess different stocks on a more comparable basis, using the latest information. Hebron Technology’s most recent bottom-line is $5.9M, which, in comparison to last year’s figure, has increased by 34.92%. Since these values are fairly nearsighted, I have computed an annualized five-year figure for HEBT’s net income, which stands at $3.7M. This means generally, Hebron Technology has been able to steadily improve its net income over the past couple of years as well.
What’s the driver of this growth? Well, let’s take a look at whether it is solely a result of industry tailwinds, or if Hebron Technology has seen some company-specific growth. In the last couple of years, Hebron Technology expanded its bottom line faster than revenue by efficiently controlling its costs. This has caused a margin expansion and profitability over time. Scanning growth from a sector-level, the US machinery industry has been growing its average earnings by double-digit 17.33% over the prior twelve months, and a more muted 4.54% over the previous five years. This shows that whatever tailwind the industry is gaining from, Hebron Technology is capable of amplifying this to its advantage.
What does this mean?
Though Hebron Technology’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? I recommend you continue to research Hebron Technology to get a more holistic view of the stock by looking at:
1. Financial Health: Is HEBT’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.
2. 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 last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.