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Examining Advanced Enzyme Technologies Limited’s (NSE:ADVENZYMES) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess ADVENZYMES’s latest performance announced on 31 December 2018 and weight these figures against its longer term trend and industry movements.
View our latest analysis for Advanced Enzyme Technologies
How ADVENZYMES fared against its long-term earnings performance and its industry
ADVENZYMES’s trailing twelve-month earnings (from 31 December 2018) of ₹1.1b has jumped 27% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 18%, indicating the rate at which ADVENZYMES is growing has accelerated. What’s the driver of this growth? Let’s take a look at if it is merely a result of industry tailwinds, or if Advanced Enzyme Technologies has seen some company-specific growth.
In terms of returns from investment, Advanced Enzyme Technologies has fallen short of achieving a 20% return on equity (ROE), recording 17% instead. However, its return on assets (ROA) of 13% exceeds the IN Chemicals industry of 8.1%, indicating Advanced Enzyme Technologies has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Advanced Enzyme Technologies’s debt level, has declined over the past 3 years from 38% to 23%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Advanced Enzyme Technologies gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Advanced Enzyme Technologies to get a more holistic view of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for ADVENZYMES’s future growth? Take a look at our free research report of analyst consensus for ADVENZYMES’s outlook.
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Financial Health: Are ADVENZYMES’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 December 2018. 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.