In This Article:
Understanding how Golden Resources Development International Limited (HKG:677) is performing as a company requires looking at more than just a years’ earnings. Today I will run you through a basic sense check to gain perspective on how Golden Resources Development International is doing by comparing its latest earnings with its long-term trend as well as the performance of its consumer retailing industry peers.
Check out our latest analysis for Golden Resources Development International
Did 677’s recent earnings growth beat the long-term trend and the industry?
677’s trailing twelve-month earnings (from 31 March 2018) of HK$65m has increased by 9.4% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -19%, indicating the rate at which 677 is growing has accelerated. How has it been able to do this? Let’s see whether it is only owing to industry tailwinds, or if Golden Resources Development International has experienced some company-specific growth.
In terms of returns from investment, Golden Resources Development International has fallen short of achieving a 20% return on equity (ROE), recording 4.8% instead. Furthermore, its return on assets (ROA) of 3.9% is below the HK Consumer Retailing industry of 4.4%, indicating Golden Resources Development International’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Golden Resources Development International’s debt level, has declined over the past 3 years from 6.6% to 1.3%.
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 Golden Resources Development International to get a more holistic view of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for 677’s future growth? Take a look at our free research report of analyst consensus for 677’s outlook.
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Financial Health: Are 677’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.