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Want To Invest In Sands China Ltd. (HKG:1928)? Here’s How It Performed Lately

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Assessing Sands China Ltd.’s (HKG:1928) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess 1928’s recent performance announced on 31 December 2018 and evaluate these figures to its longer term trend and industry movements.

See our latest analysis for Sands China

How 1928 fared against its long-term earnings performance and its industry

1928’s trailing twelve-month earnings (from 31 December 2018) of US$1.9b has jumped 17% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -9.8%, indicating the rate at which 1928 is growing has accelerated. What’s enabled this growth? Let’s see if it is merely a result of industry tailwinds, or if Sands China has experienced some company-specific growth.

SEHK:1928 Income Statement, February 24th 2019
SEHK:1928 Income Statement, February 24th 2019

In terms of returns from investment, Sands China has invested its equity funds well leading to a 43% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 17% exceeds the HK Hospitality industry of 4.0%, indicating Sands China has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Sands China’s debt level, has increased over the past 3 years from 16% to 23%.

What does this mean?

While past data is useful, it doesn’t tell the whole story. While Sands China has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I suggest you continue to research Sands China to get a more holistic view of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for 1928’s future growth? Take a look at our free research report of analyst consensus for 1928’s outlook.

  2. Financial Health: Are 1928’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.

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