How Does Gemdale Properties and Investment Corporation Limited's (HKG:535) Earnings Growth Stack Up Against Industry Performance?
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Analyzing Gemdale Properties and Investment Corporation Limited's (HKG:535) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess 535's recent performance announced on 31 December 2018 and compare these figures to its long-term trend and industry movements.
Check out our latest analysis for Gemdale Properties and Investment
Were 535's earnings stronger than its past performances and the industry?
535's trailing twelve-month earnings (from 31 December 2018) of CN¥2.3b has jumped 37% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 27%, indicating the rate at which 535 is growing has accelerated. What's the driver of this growth? Let's see if it is solely due to industry tailwinds, or if Gemdale Properties and Investment has experienced some company-specific growth.
In terms of returns from investment, Gemdale Properties and Investment has fallen short of achieving a 20% return on equity (ROE), recording 20% instead. However, its return on assets (ROA) of 4.4% exceeds the HK Real Estate industry of 3.1%, indicating Gemdale Properties and Investment has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Gemdale Properties and Investment’s debt level, has increased over the past 3 years from 15% to 15%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 56% to 44% over the past 5 years.
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. You should continue to research Gemdale Properties and Investment to get a better picture of the stock by looking at:
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.
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.
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.