In This Article:
Assessing Star Paper Mills Limited's (NSEI:STARPAPER) 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 STARPAPER's recent performance announced on 30 June 2019 and evaluate these figures to its longer term trend and industry movements.
View our latest analysis for Star Paper Mills
How Well Did STARPAPER Perform?
STARPAPER's trailing twelve-month earnings (from 30 June 2019) of ₹574m has jumped 14% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 36%, indicating the rate at which STARPAPER is growing has slowed down. To understand what's happening, let's examine what's going on with margins and if the rest of the industry is feeling the heat.
In terms of returns from investment, Star Paper Mills has fallen short of achieving a 20% return on equity (ROE), recording 13% instead. However, its return on assets (ROA) of 9.8% exceeds the IN Forestry industry of 7.6%, indicating Star Paper Mills has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Star Paper Mills’s debt level, has declined over the past 3 years from 36% to 8.5%.
What does this mean?
Though Star Paper Mills's past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Star Paper Mills 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 STARPAPER’s future growth? Take a look at our free research report of analyst consensus for STARPAPER’s outlook.
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Financial Health: Are STARPAPER’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 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.