When Jadason Enterprises Ltd (SGX:J03) released its most recent earnings update (31 December 2017), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Understanding how Jadason Enterprises performed requires a benchmark rather than trying to assess a standalone number at one point in time. Below is a quick commentary on how I see J03 has performed. Check out our latest analysis for Jadason Enterprises
How Did J03’s Recent Performance Stack Up Against Its Past?
I like to use data from the most recent 12 months, 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 method allows me to assess different companies in a uniform manner using the most relevant data points. For Jadason Enterprises, its most recent earnings (trailing twelve month) is S$2.82M, which, in comparison to last year’s figure, has escalated by a significant 54.49%. Given that these figures are fairly short-term thinking, I have calculated an annualized five-year figure for Jadason Enterprises’s net income, which stands at -S$7.11M This means generally, Jadason Enterprises has been able to gradually improve its earnings over the past couple of years as well.
What’s enabled this growth? Let’s see whether it is only attributable to an industry uplift, or if Jadason Enterprises has seen some company-specific growth. Over the past couple of years, even though bottom-line growth has seen a waning, top-line growth has fallen by a lot more, causing a margin expansion and Jadason Enterprises still maintaining profitability. Inspecting growth from a sector-level, the SG electronic industry has been growing its average earnings by double-digit 48.26% over the previous twelve months, and a more subdued 4.61% over the past half a decade. This means that whatever tailwind the industry is profiting from, Jadason Enterprises is capable of leveraging this to its advantage.
What does this mean?
Though Jadason Enterprises’s past data is helpful, it is only one aspect of my investment thesis. While Jadason Enterprises has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Jadason Enterprises to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for J03’s future growth? Take a look at our free research report of analyst consensus for J03’s outlook.
- Financial Health: Is J03’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 2017. 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.