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Want To Invest In Genting Singapore Limited (SGX:G13)? Here's How It Performed Lately

Simply Wall St

Examining how Genting Singapore Limited (SGX:G13) is performing as a company requires looking at more than just a years' earnings. Below, I will run you through a simple sense check to build perspective on how Genting Singapore is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its hospitality industry peers.

See our latest analysis for Genting Singapore

How Did G13's Recent Performance Stack Up Against Its Past?

G13's trailing twelve-month earnings (from 30 September 2019) of S$683m has declined by -7.5% 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 25%, indicating the rate at which G13 is growing has slowed down. Why could this be happening? Well, let's look at what's going on with margins and whether the rest of the industry is facing the same headwind.

SGX:G13 Income Statement, December 4th 2019

In terms of returns from investment, Genting Singapore has fallen short of achieving a 20% return on equity (ROE), recording 8.6% instead. However, its return on assets (ROA) of 6.9% exceeds the SG Hospitality industry of 4.1%, indicating Genting Singapore has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Genting Singapore’s debt level, has increased over the past 3 years from 3.0% to 9.2%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 18% to 3.2% over the past 5 years.

What does this mean?

Though Genting Singapore's past data is helpful, it is only one aspect of my investment thesis. Companies that are profitable, but have volatile earnings, can have many factors affecting its business. I suggest you continue to research Genting Singapore to get a more holistic view of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for G13’s future growth? Take a look at our free research report of analyst consensus for G13’s outlook.
  2. Financial Health: Are G13’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 30 September 2019. This may not be consistent with full year annual report figures.

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.

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