Shaanxi Northwest New Technology Industry Company Limited's (HKG:8258) Earnings Dropped -15%, How Did It Fare Against The Industry?
When Shaanxi Northwest New Technology Industry Company Limited (SEHK:8258) released its most recent earnings update (31 March 2020), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well Shaanxi Northwest New Technology Industry has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I've summarized the key takeaways on how I see 8258 has performed.
Check out our latest analysis for Shaanxi Northwest New Technology Industry
Was 8258's recent earnings decline worse than the long-term trend and the industry?
8258 recently turned a profit of CN¥9.8m (most recent trailing twelve-months) compared to its average loss of -CN¥2.4m over the past five years.
In terms of returns from investment, Shaanxi Northwest New Technology Industry has fallen short of achieving a 20% return on equity (ROE), recording 5.8% instead. Furthermore, its return on assets (ROA) of 3.1% is below the HK Chemicals industry of 6.6%, indicating Shaanxi Northwest New Technology Industry's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Shaanxi Northwest New Technology Industry’s debt level, has increased over the past 3 years from 1.8% to 6.4%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 3.3% to 1.8% over the past 5 years.
What does this mean?
Shaanxi Northwest New Technology Industry'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 unpredictable earnings, can have many factors affecting its business. You should continue to research Shaanxi Northwest New Technology Industry to get a better picture of the stock by looking at:
Financial Health: Are 8258’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 March 2020. This may not be consistent with full year annual report figures.
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