Assessing Capxon International Electronic Company Limited’s (HKG:469) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess 469’s recent performance announced on 30 June 2018 and evaluate these figures to its long-term trend and industry movements.
Check out our latest analysis for Capxon International Electronic
How Well Did 469 Perform?
469 recently turned a profit of CN¥31.8m (most recent trailing twelve-months) compared to its average loss of -CN¥13.3m over the past five years.
Over the past couple of years, Capxon International Electronic grew bottom-line, while its top-line fell, by efficiently managing its costs. This has caused to a margin expansion and profitability over time. Looking at growth from a sector-level, the HK electronic industry has been growing its average earnings by double-digit 10.7% over the previous twelve months, and 15.1% over the past five. This growth is a median of profitable companies of 25 Electronic companies in HK including Prime Intelligence Solutions Group, Yeebo (International Holdings) and Pantronics Holdings. This means that any uplift the industry is deriving benefit from, Capxon International Electronic is capable of leveraging this to its advantage.
In terms of returns from investment, Capxon International Electronic has fallen short of achieving a 20% return on equity (ROE), recording 5.1% instead. Furthermore, its return on assets (ROA) of 2.5% is below the HK Electronic industry of 5.7%, indicating Capxon International Electronic’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for Capxon International Electronic’s debt level, has increased over the past 3 years from 9.0% to 14.9%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 63.4% to 41.8% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Capxon International Electronic 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 Capxon International Electronic 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 469’s future growth? Take a look at our free research report of analyst consensus for 469’s outlook.
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Financial Health: Are 469’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.