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When ValueMax Group Limited (SGX:T6I) released its most recent earnings update (30 June 2019), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Understanding how ValueMax Group performed requires a benchmark rather than trying to assess a standalone number at one point in time. Below is a quick commentary on how I see T6I has performed.
See our latest analysis for ValueMax Group
Did T6I beat its long-term earnings growth trend and its industry?
T6I's trailing twelve-month earnings (from 30 June 2019) of S$22m has jumped 10% 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 21%, indicating the rate at which T6I is growing has slowed down. Why could this be happening? Well, let’s take a look at what’s going on with margins and if the entire industry is feeling the heat.
In terms of returns from investment, ValueMax Group has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 5.3% exceeds the SG Consumer Finance industry of 2.8%, indicating ValueMax Group has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for ValueMax Group’s debt level, has increased over the past 3 years from 5.3% to 9.1%.
What does this mean?
ValueMax Group's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. 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 ValueMax Group 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 T6I’s future growth? Take a look at our free research report of analyst consensus for T6I’s outlook.
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Financial Health: Are T6I’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.