Assessing Thai Beverage Public Company Limited’s (SGX:Y92) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess Y92’s latest performance announced on 31 March 2018 and evaluate these figures to its historical trend and industry movements.
How Y92 fared against its long-term earnings performance and its industry
Y92’s trailing twelve-month earnings (from 31 March 2018) of ฿29.49b has jumped 19.74% compared to the previous year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 9.29%, indicating the rate at which Y92 is growing has accelerated. What’s the driver of this growth? Let’s see whether it is solely because of industry tailwinds, or if Thai Beverage has experienced some company-specific growth.
Over the last few years, Thai Beverage increased its bottom line faster than revenue by efficiently controlling its costs. This has caused a margin expansion and profitability over time. Viewing growth from a sector-level, the SG beverage industry has been amplifying average earnings growth of 52.52% in the past year, and a flatter 1.45% over the last five years. Since the sector in is relatively small, I’ve included similar companies in the wider region in order to get a better idea of the growth, which is a median of profitable companies of companies such as , and . This shows that whatever tailwind the industry is benefiting from, Thai Beverage has not been able to leverage it as much as its industry peers.
In terms of returns from investment, Thai Beverage has invested its equity funds well leading to a 21.72% return on equity (ROE), above the sensible minimum of 20%. However, its return on assets (ROA) of 7.68% is below the SG Beverage industry of 8.35%, indicating Thai Beverage’s are utilized less efficiently. Furthermore, its return on capital (ROC), which also accounts for Thai Beverage’s debt level, has declined over the past 3 years from 22.46% to 10.44%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 99.50% to 165.34% over the past 5 years.
What does this mean?
Thai Beverage’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as Thai Beverage gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Thai Beverage to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for Y92’s future growth? Take a look at our free research report of analyst consensus for Y92’s outlook.
- Financial Health: Are Y92’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 2018. This may not be consistent with full year annual report figures.
To help readers see past 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. For errors that warrant correction please contact the editor at firstname.lastname@example.org.