Assessing ComfortDelGro Corporation Limited's (SGX:C52) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess C52's recent performance announced on 30 June 2019 and evaluate these figures to its longer term trend and industry movements.
Could C52 beat the long-term trend and outperform its industry?
C52's trailing twelve-month earnings (from 30 June 2019) of S$308m has increased by 9.8% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 1.0%, indicating the rate at which C52 is growing has accelerated. What's the driver of this growth? Let's take a look at whether it is only due to an industry uplift, or if ComfortDelGro has seen some company-specific growth.
In terms of returns from investment, ComfortDelGro has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 5.9% exceeds the SG Transportation industry of 5.1%, indicating ComfortDelGro has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for ComfortDelGro’s debt level, has declined over the past 3 years from 11% to 11%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 19% to 21% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as ComfortDelGro gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research ComfortDelGro to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for C52’s future growth? Take a look at our free research report of analyst consensus for C52’s outlook.
- Financial Health: Are C52’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.
- 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 June 2019. 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 firstname.lastname@example.org. 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.