In This Article:
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Assessing Brigade Enterprises Limited’s (NSE:BRIGADE) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess BRIGADE’s latest performance announced on 31 December 2018 and evaluate these figures to its historical trend and industry movements.
View our latest analysis for Brigade Enterprises
Commentary On BRIGADE’s Past Performance
BRIGADE’s trailing twelve-month earnings (from 31 December 2018) of ₹2.0b has increased by 1.6% 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 16%, indicating the rate at which BRIGADE is growing has slowed down. What could be happening here? Well, let’s examine what’s occurring with margins and if the rest of the industry is facing the same headwind.
In terms of returns from investment, Brigade Enterprises has fallen short of achieving a 20% return on equity (ROE), recording 10% instead. However, its return on assets (ROA) of 4.2% exceeds the IN Real Estate industry of 3.3%, indicating Brigade Enterprises has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Brigade Enterprises’s debt level, has declined over the past 3 years from 16% to 11%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 81% to 141% over the past 5 years.
What does this mean?
Though Brigade Enterprises’s past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Brigade Enterprises to get a more holistic view of the stock by looking at:
-
Future Outlook: What are well-informed industry analysts predicting for BRIGADE’s future growth? Take a look at our free research report of analyst consensus for BRIGADE’s outlook.
-
Financial Health: Are BRIGADE’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.