In This Article:
Assessing Kellton Tech Solutions Limited’s (NSE:KELLTONTEC) 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 KELLTONTEC’s recent performance announced on 30 September 2018 and evaluate these figures to its long-term trend and industry movements.
View our latest analysis for Kellton Tech Solutions
How KELLTONTEC fared against its long-term earnings performance and its industry
KELLTONTEC’s trailing twelve-month earnings (from 30 September 2018) of ₹735m has jumped 27% 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 42%, indicating the rate at which KELLTONTEC is growing has slowed down. Why could this be happening? Well, let’s look at what’s going on with margins and whether the whole industry is feeling the heat.
In terms of returns from investment, Kellton Tech Solutions has invested its equity funds well leading to a 26% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 14% exceeds the IN IT industry of 7.0%, indicating Kellton Tech Solutions has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Kellton Tech Solutions’s debt level, has increased over the past 3 years from 29% to 31%.
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? I suggest you continue to research Kellton Tech Solutions to get a more holistic view of the stock by looking at:
-
Future Outlook: What are well-informed industry analysts predicting for KELLTONTEC’s future growth? Take a look at our free research report of analyst consensus for KELLTONTEC’s outlook.
-
Financial Health: Are KELLTONTEC’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 30 September 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.