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Want To Invest In Bumitama Agri Ltd. (SGX:P8Z)? Here's How It Performed Lately

Simply Wall St

Examining Bumitama Agri Ltd.'s (SGX:P8Z) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess P8Z's latest performance announced on 31 December 2018 and compare these figures to its longer term trend and industry movements.

See our latest analysis for Bumitama Agri

How Did P8Z's Recent Performance Stack Up Against Its Past?

P8Z's trailing twelve-month earnings (from 31 December 2018) of Rp1.1t has declined by -8.1% 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 4.6%, indicating the rate at which P8Z is growing has slowed down. Why is this? Let's examine what's occurring with margins and whether the rest of the industry is feeling the heat.

SGX:P8Z Income Statement, April 23rd 2019

In terms of returns from investment, Bumitama Agri has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 6.8% exceeds the SG Food industry of 6.2%, indicating Bumitama Agri has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Bumitama Agri’s debt level, has increased over the past 3 years from 10% to 18%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 68% to 58% over the past 5 years.

What does this mean?

Bumitama Agri'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 influencing its business. I suggest you continue to research Bumitama Agri to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for P8Z’s future growth? Take a look at our free research report of analyst consensus for P8Z’s outlook.
  2. Financial Health: Are P8Z’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.
  3. 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.