For investors with a long-term horizon, assessing earnings trend over time and against industry benchmarks is more valuable than looking at a single earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Get Nice Financial Group Limited (HKG:1469) useful as an attempt to give more color around how Get Nice Financial Group is currently performing.
View our latest analysis for Get Nice Financial Group
Commentary On 1469’s Past Performance
1469’s trailing twelve-month earnings (from 31 March 2018) of HK$277m has increased by 1.1% 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 17%, indicating the rate at which 1469 is growing has slowed down. To understand what’s happening, let’s take a look at what’s transpiring with margins and whether the rest of the industry is experiencing the hit as well.
In terms of returns from investment, Get Nice Financial Group has fallen short of achieving a 20% return on equity (ROE), recording 6.9% instead. However, its return on assets (ROA) of 5.6% exceeds the HK Capital Markets industry of 2.9%, indicating Get Nice Financial Group has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Get Nice Financial Group’s debt level, has declined over the past 3 years from 19% to 7.4%.
What does this mean?
Though Get Nice Financial Group’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 suggest you continue to research Get Nice Financial Group 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 1469’s future growth? Take a look at our free research report of analyst consensus for 1469’s outlook.
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Financial Health: Are 1469’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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.