In This Article:
Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at Prosperity Investment Holdings Limited’s (HKG:310) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.
Check out our latest analysis for Prosperity Investment Holdings
Was 310’s recent earnings decline worse than the long-term trend and the industry?
310 is loss-making, with the most recent trailing twelve-month earnings of -HK$25m (from 30 June 2018), which compared to last year has become more negative. Furthermore, the company’s loss seem to be growing over time, with the five-year earnings average of -HK$14m. Each year, for the past five years 310 has seen an annual decline in revenue of -18%, on average. This adverse movement is a driver of the company’s inability to reach breakeven.
Inspecting growth from a sector-level, the HK diversified financial industry has been
Although Prosperity Investment Holdings is loss-making, its has a good cash runway to meet its upcoming operating expense (should SG&A and one-year R&D remain constant at the current level of HK$20m) over the next year. This is a strong indication of good cash management.
What does this mean?
Prosperity Investment Holdings’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always difficult to forecast what will occur going forward, and when. The most useful step is to assess company-specific issues Prosperity Investment Holdings may be facing and whether management guidance has regularly been met in the past. I recommend you continue to research Prosperity Investment Holdings to get a better picture of the stock by looking at:
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Financial Health: Are 310’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 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.