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Examining Asahi Songwon Colors Limited’s (NSEI:ASAHISONG) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess ASAHISONG’s latest performance announced on 31 March 2018 and weigh these figures against its longer term trend and industry movements. View our latest analysis for Asahi Songwon Colors
How Did ASAHISONG’s Recent Performance Stack Up Against Its Past?
To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This allows me to examine different companies in a uniform manner using the most relevant data points. For Asahi Songwon Colors, its most recent trailing-twelve-month earnings is ₹230.76M, which compared to last year’s figure, has dropped by -7.77%. Given that these values may be fairly nearsighted, I have estimated an annualized five-year value for Asahi Songwon Colors’s net income, which stands at ₹191.63M This means even though earnings declined against the prior year, over the past couple of years, Asahi Songwon Colors’s earnings have been rising on average.
What’s the driver of this growth? Let’s take a look at if it is only because of industry tailwinds, or if Asahi Songwon Colors has seen some company-specific growth. In the past couple of years, Asahi Songwon Colors grew its bottom line faster than revenue by effectively controlling its costs. This has caused a margin expansion and profitability over time. Looking at growth from a sector-level, the IN chemicals industry has been growing its average earnings by double-digit 16.82% in the previous year, and 13.18% over the past five years. This suggests that any tailwind the industry is benefiting from, Asahi Songwon Colors has not been able to realize the gains unlike its industry peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have unpredictable earnings, can have many factors impacting its business. You should continue to research Asahi Songwon Colors to get a better picture of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for ASAHISONG’s future growth? Take a look at our free research report of analyst consensus for ASAHISONG’s outlook.
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Financial Health: Is ASAHISONG’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.
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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 pass 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.