In This Article:
Assessing Gemdale Properties and Investment Corporation Limited’s (HKG:535) 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 535’s recent performance announced on 30 June 2018 and evaluate these figures to its long-term trend and industry movements.
See our latest analysis for Gemdale Properties and Investment
How Well Did 535 Perform?
535’s trailing twelve-month earnings (from 30 June 2018) of CN¥1.8b has jumped 28% 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 30%, indicating the rate at which 535 is growing has slowed down. Why could this be happening? Well, let’s look at what’s going on with margins and whether the entire industry is feeling the heat.
In terms of returns from investment, Gemdale Properties and Investment has fallen short of achieving a 20% return on equity (ROE), recording 17% instead. Furthermore, its return on assets (ROA) of 3.3% is below the HK Real Estate industry of 3.8%, indicating Gemdale Properties and Investment’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for Gemdale Properties and Investment’s debt level, has increased over the past 3 years from 5.7% to 15%.
What does this mean?
Though Gemdale Properties and Investment’s past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Gemdale Properties and Investment gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Gemdale Properties and Investment 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 535’s future growth? Take a look at our free research report of analyst consensus for 535’s outlook.
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Financial Health: Are 535’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 30 June 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.