Assessing Nam Lee Pressed Metal Industries Limited's (SGX:G0I) performance as a company requires looking at more than just a years' earnings data. Below, I will run you through a simple sense check to build perspective on how Nam Lee Pressed Metal Industries is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its building industry peers.

Check out our latest analysis for Nam Lee Pressed Metal Industries

Could G0I beat the long-term trend and outperform its industry?

G0I's trailing twelve-month earnings (from 31 March 2019) of S$11m has increased by 2.4% 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 5.0%, indicating the rate at which G0I is growing has slowed down. Why could this be happening? Well, let's examine what's going on with margins and whether the entire industry is facing the same headwind.

In terms of returns from investment, Nam Lee Pressed Metal Industries has fallen short of achieving a 20% return on equity (ROE), recording 7.6% instead. However, its return on assets (ROA) of 6.3% exceeds the SG Building industry of 5.7%, indicating Nam Lee Pressed Metal Industries has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Nam Lee Pressed Metal Industries’s debt level, has declined over the past 3 years from 15% to 8.1%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 0.9% to 0.9% over the past 5 years.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? You should continue to research Nam Lee Pressed Metal Industries to get a better picture of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for G0I’s future growth? Take a look at our free research report of analyst consensus for G0I’s outlook.

2. Financial Health: Are G0I’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.

3. 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 2019. This may not be consistent with full year annual report figures.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.