Assessing GT Group Holdings Limited’s (SEHK:263) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess 263’s recent performance announced on 31 December 2017 and evaluate these figures to its longer term trend and industry movements. View our latest analysis for GT Group Holdings
How 263 fared against its long-term earnings performance and its industry
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 blend enables me to assess various companies on a more comparable basis, using new information. For GT Group Holdings, its latest trailing-twelve-month earnings is -HK$566.83M, which, relative to last year’s figure, has become less negative. Given that these figures may be fairly short-term, I’ve computed an annualized five-year figure for GT Group Holdings’s net income, which stands at -HK$251.24M. This shows that, GT Group Holdings has historically performed better than recently, though it seems like earnings are now heading back towards to right direction again.
We can further analyze GT Group Holdings’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years GT Group Holdings has seen an annual decline in revenue of -56.70%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Eyeballing growth from a sector-level, the HK capital markets industry has been growing, albeit, at a subdued single-digit rate of 9.36% in the previous twelve months, and a substantial 12.34% over the past five years. This means though GT Group Holdings is presently unprofitable, it may have benefited from industry tailwinds, moving earnings into a more favorable position.
What does this mean?
Though GT Group Holdings’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always hard to envisage what will occur going forward, and when. The most useful step is to examine company-specific issues GT Group Holdings may be facing and whether management guidance has dependably been met in the past. I suggest you continue to research GT Group Holdings to get a better picture of the stock by looking at: