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Today I will examine Superhouse Limited's (NSE:SUPERHOUSE) latest earnings update (31 March 2019) and compare these figures against its performance over the past couple of years, in addition to how the rest of SUPERHOUSE's industry performed. As a long-term investor, I find it useful to analyze the company's trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time.
View our latest analysis for Superhouse
How SUPERHOUSE fared against its long-term earnings performance and its industry
SUPERHOUSE's trailing twelve-month earnings (from 31 March 2019) of ₹209m has jumped 19% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -18%, indicating the rate at which SUPERHOUSE is growing has accelerated. How has it been able to do this? Well, let’s take a look at whether it is merely a result of industry tailwinds, or if Superhouse has seen some company-specific growth.
In terms of returns from investment, Superhouse has fallen short of achieving a 20% return on equity (ROE), recording 6.5% instead. Furthermore, its return on assets (ROA) of 5.7% is below the IN Luxury industry of 6.3%, indicating Superhouse's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Superhouse’s debt level, has declined over the past 3 years from 18% to 13%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Recent positive growth isn't always indicative of a continued optimistic outlook. There may be variables that are impacting the industry as a whole, hence the high industry growth rate over the same time frame. I recommend you continue to research Superhouse to get a better picture of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for SUPERHOUSE’s future growth? Take a look at our free research report of analyst consensus for SUPERHOUSE’s outlook.
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Financial Health: Are SUPERHOUSE’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.