Interested In eprint Group Limited (HKG:1884)? Here’s What Its Recent Performance Looks Like

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Assessing eprint Group Limited’s (HKG:1884) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess 1884’s recent performance announced on 30 September 2018 and evaluate these figures to its longer term trend and industry movements.

See our latest analysis for eprint Group

Did 1884 beat its long-term earnings growth trend and its industry?

1884’s trailing twelve-month earnings (from 30 September 2018) of HK$23m has increased by 8.6% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -7.5%, indicating the rate at which 1884 is growing has accelerated. How has it been able to do this? Let’s see whether it is merely because of an industry uplift, or if eprint Group has seen some company-specific growth.

SEHK:1884 Income Statement Export December 24th 18
SEHK:1884 Income Statement Export December 24th 18

In terms of returns from investment, eprint Group has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 7.5% exceeds the HK Commercial Services industry of 6.0%, indicating eprint Group has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for eprint Group’s debt level, has declined over the past 3 years from 16% to 12%.

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. There may be factors that are impacting the entire industry thus the high industry growth rate over the same time frame. You should continue to research eprint Group to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for 1884’s future growth? Take a look at our free research report of analyst consensus for 1884’s outlook.

  2. Financial Health: Are 1884’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 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.

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