In This Article:
Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at Yangtze Optical Fibre And Cable Joint Stock Limited Company’s (HKG:6869) 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.
See our latest analysis for Yangtze Optical Fibre And Cable Limited
Commentary On 6869’s Past Performance
6869’s trailing twelve-month earnings (from 30 September 2018) of CN¥1.6b has jumped 42% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 31%, indicating the rate at which 6869 is growing has accelerated. What’s enabled this growth? Let’s take a look at if it is solely due to industry tailwinds, or if Yangtze Optical Fibre And Cable Limited has seen some company-specific growth.
In terms of returns from investment, Yangtze Optical Fibre And Cable Limited has fallen short of achieving a 20% return on equity (ROE), recording 18% instead. However, its return on assets (ROA) of 11% exceeds the HK Communications industry of 8.9%, indicating Yangtze Optical Fibre And Cable Limited has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Yangtze Optical Fibre And Cable Limited’s debt level, has increased over the past 3 years from 13% to 17%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 94% to 17% 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 Yangtze Optical Fibre And Cable Limited 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 6869’s future growth? Take a look at our free research report of analyst consensus for 6869’s outlook.
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Financial Health: Are 6869’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 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.