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Measuring SATS Ltd.'s (SGX:S58) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess S58's recent performance announced on 31 March 2019 and compare these figures to its historical trend and industry movements.
View our latest analysis for SATS
Did S58 perform worse than its track record and industry?
S58's trailing twelve-month earnings (from 31 March 2019) of S$248m has declined by -5.0% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 8.5%, indicating the rate at which S58 is growing has slowed down. Why is this? Well, let’s take a look at what’s transpiring with margins and if the whole industry is feeling the heat.
In terms of returns from investment, SATS has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 10% exceeds the SG Infrastructure industry of 6.1%, indicating SATS has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for SATS’s debt level, has declined over the past 3 years from 13% to 12%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors impacting its business. You should continue to research SATS 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 S58’s future growth? Take a look at our free research report of analyst consensus for S58’s outlook.
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Financial Health: Are S58’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 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.