Assessing Memtech International Ltd’s (SGX:BOL) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess BOL’s recent performance announced on 31 March 2018 and evaluate these figures to its long-term trend and industry movements. View our latest analysis for Memtech International

How Did BOL’s Recent Performance Stack Up Against Its Past?

For the most up-to-date info, I use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This blend allows me to examine different stocks in a uniform manner using the latest information. For Memtech International, its latest trailing-twelve-month earnings is US$13.87M, which, in comparison to last year’s level, has jumped by a non-trivial 89.98%. Since these figures are relatively myopic, I have determined an annualized five-year value for Memtech International’s net income, which stands at US$6.90M This means on average, Memtech International has been able to consistently raise its bottom line over the past few years as well.

What’s the driver of this growth? Let’s see if it is only due to an industry uplift, or if Memtech International has seen some company-specific growth. In the last couple of years, Memtech International increased its bottom line faster than revenue by effectively controlling its costs. This has led to a margin expansion and profitability over time. Eyeballing growth from a sector-level, the SG electronic industry has been growing its average earnings by double-digit 32.88% over the prior twelve months, and a more muted 8.04% over the past five. This shows that whatever tailwind the industry is enjoying, Memtech International is able to amplify this to its advantage.

What does this mean?

While past data is useful, it doesn’t tell the whole story. While Memtech International has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Memtech International to get a more holistic view of the stock by looking at:

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

2. Financial Health: Is BOL’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 31 March 2018. This may not be consistent with full year annual report figures.
To help readers see pass 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.