Interested In Archies Limited (NSE:ARCHIES)? Here’s How It Performed Recently
In This Article:
After looking at Archies Limited’s (NSE:ARCHIES) latest earnings update (30 June 2018), I found it helpful to revisit the company’s performance in the past couple of years and compare this against the latest numbers. As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. Also, comparing it against an industry benchmark to understand whether it outperformed, or is simply riding an industry wave, is an important aspect. In this article I briefly touch on my key findings.
See our latest analysis for Archies
Did ARCHIES’s recent performance beat its trend and industry?
ARCHIES’s trailing twelve-month earnings (from 30 June 2018) of ₹13.37m has
In terms of returns from investment, Archies has fallen short of achieving a 20% return on equity (ROE), recording 1.14% instead. Furthermore, its return on assets (ROA) of 2.36% is below the IN Specialty Retail industry of 6.33%, indicating Archies’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Archies’s debt level, has declined over the past 3 years from 6.43% to 2.16%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 4.62% to 13.44% over the past 5 years.
What does this mean?
Archies’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. You should continue to research Archies to get a more holistic view of the stock by looking at:
-
Financial Health: Are ARCHIES’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 June 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.