Investors with a long-term horizong may find it valuable to assess Want Want China Holdings Limited's (SEHK:151) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. Below is my commentary, albiet very simple and high-level, on how Want Want China Holdings is currently performing.

See our latest analysis for Want Want China Holdings

Did 151 beat its long-term earnings growth trend and its industry?

151's trailing twelve-month earnings (from 31 March 2019) of CN¥3.5b has jumped 13% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -5.8%, indicating the rate at which 151 is growing has accelerated. What's enabled this growth? Well, let’s take a look at whether it is solely due to industry tailwinds, or if Want Want China Holdings has seen some company-specific growth.

In terms of returns from investment, Want Want China Holdings has invested its equity funds well leading to a 22% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 11% exceeds the HK Food industry of 6.3%, indicating Want Want China Holdings has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Want Want China Holdings’s debt level, has declined over the past 3 years from 25% to 19%.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Recent positive growth doesn’t necessarily mean it’s onwards and upwards for the company. You should continue to research Want Want China Holdings to get a better picture of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for 151’s future growth? Take a look at our free research report of analyst consensus for 151’s outlook.

2. Financial Health: Are 151’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.

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 March 2019. 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.