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For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine Sify Technologies Limited's (NASDAQ:SIFY) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers.
How Well Did SIFY Perform?
SIFY's trailing twelve-month earnings (from 31 March 2019) of ₹1.1b has jumped 16% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 29%, indicating the rate at which SIFY is growing has slowed down. To understand what's happening, let's examine what's transpiring with margins and if the whole industry is experiencing the hit as well.
In terms of returns from investment, Sify Technologies has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 6.4% exceeds the US Telecom industry of 4.9%, indicating Sify Technologies has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Sify Technologies’s debt level, has increased over the past 3 years from 10% to 12%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Sify Technologies gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Sify Technologies to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for SIFY’s future growth? Take a look at our free research report of analyst consensus for SIFY’s outlook.
- Financial Health: Are SIFY’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 2019. 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 email@example.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.