In This Article:
After reading Eco-Tek Holdings Limited's (HKG:8169) latest earnings update (30 April 2019), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. As a long-term investor I tend to pay attention to earnings trend, rather than a single number at one point in time. I also like to compare against an industry benchmark to understand whether 8169 has outperformed, or whether it is simply riding an industry wave. Below is a brief commentary on my key takeaways.
Check out our latest analysis for Eco-Tek Holdings
Was 8169's weak performance lately a part of a long-term decline?
8169 recently turned a profit of HK$4.3m (most recent trailing twelve-months) compared to its average loss of -HK$3.4m over the past five years.
In terms of returns from investment, Eco-Tek Holdings has fallen short of achieving a 20% return on equity (ROE), recording 5.5% instead. Furthermore, its return on assets (ROA) of 2.6% is below the HK Commercial Services industry of 5.9%, indicating Eco-Tek Holdings's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Eco-Tek Holdings’s debt level, has increased over the past 3 years from 2.0% to 6.4%.
What does this mean?
Though Eco-Tek Holdings's past data is helpful, it is only one aspect of my investment thesis. Companies that are profitable, but have unpredictable earnings, can have many factors influencing its business. You should continue to research Eco-Tek Holdings to get a more holistic view of the stock by looking at:
-
Future Outlook: What are well-informed industry analysts predicting for 8169’s future growth? Take a look at our free research report of analyst consensus for 8169’s outlook.
-
Financial Health: Are 8169’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 April 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.