Interested In Valuetronics Holdings Limited (SGX:BN2)? Here’s How It Performed Recently
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Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at Valuetronics Holdings Limited’s (SGX:BN2) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.
View our latest analysis for Valuetronics Holdings
Did BN2 perform better than its track record and industry?
BN2’s trailing twelve-month earnings (from 31 December 2018) of HK$201m has declined by -0.3% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 8.7%, indicating the rate at which BN2 is growing has slowed down. Why could this be happening? Well, let’s look at what’s occurring with margins and if the rest of the industry is experiencing the hit as well.
In terms of returns from investment, Valuetronics Holdings has fallen short of achieving a 20% return on equity (ROE), recording 18% instead. However, its return on assets (ROA) of 9.2% exceeds the SG Electronic industry of 4.1%, indicating Valuetronics Holdings has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Valuetronics Holdings’s debt level, has increased over the past 3 years from 17% to 20%.
What does this mean?
Valuetronics Holdings’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors impacting its business. I suggest you continue to research Valuetronics Holdings to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for BN2’s future growth? Take a look at our free research report of analyst consensus for BN2’s outlook.
Financial Health: Are BN2’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 31 December 2018. 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 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. Thank you for reading.
