For long term investors, improvement in profitability and outperformance against the industry can be important characteristics in a stock. In this article, I will take a look at Transwind Infrastructures Limited’s (NSE:TRANSWIND) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.
View our latest analysis for Transwind Infrastructures
How Did TRANSWIND’s Recent Performance Stack Up Against Its Past?
TRANSWIND’s trailing twelve-month earnings (from 31 March 2018) of ₹8.3m has jumped 34% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 9.4%, indicating the rate at which TRANSWIND is growing has accelerated. What’s the driver of this growth? Well, let’s take a look at if it is only because of an industry uplift, or if Transwind Infrastructures has seen some company-specific growth.
In terms of returns from investment, Transwind Infrastructures has fallen short of achieving a 20% return on equity (ROE), recording 5.6% instead. Furthermore, its return on assets (ROA) of 4.2% is below the IN Construction industry of 5.2%, indicating Transwind Infrastructures’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Transwind Infrastructures’s debt level, has declined over the past 3 years from 10.0% to 7.5%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 2.5% to 18% 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? I recommend you continue to research Transwind Infrastructures to get a better picture of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for TRANSWIND’s future growth? Take a look at our free research report of analyst consensus for TRANSWIND’s outlook.
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Financial Health: Are TRANSWIND’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 March 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.