Assessing CIMC-TianDa Holdings Company Limited's (SEHK:445) 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 445's recent performance announced on 31 December 2019 and evaluate these figures to its long-term trend and industry movements.

View our latest analysis for CIMC-TianDa Holdings

How Did 445's Recent Performance Stack Up Against Its Past?

445's trailing twelve-month earnings (from 31 December 2019) of CN¥216m has jumped 30% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 25%, indicating the rate at which 445 is growing has accelerated. How has it been able to do this? Let's take a look at if it is merely due to industry tailwinds, or if CIMC-TianDa Holdings has seen some company-specific growth.

In terms of returns from investment, CIMC-TianDa Holdings has fallen short of achieving a 20% return on equity (ROE), recording 6.9% instead. Furthermore, its return on assets (ROA) of 3.0% is below the HK Machinery industry of 4.6%, indicating CIMC-TianDa Holdings's are utilized less efficiently. However, its return on capital (ROC), which also accounts for CIMC-TianDa Holdings’s debt level, has increased over the past 3 years from 8.6% to 9.3%.

What does this mean?

CIMC-TianDa Holdings's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While CIMC-TianDa Holdings has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research CIMC-TianDa Holdings to get a better picture of the stock by looking at:

1. Financial Health: Are 445’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.

2. Valuation: What is 445 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether 445 is currently mispriced by the market.

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

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.