Measuring Koon Holdings Limited’s (SGX:5DL) track record of past performance is a useful exercise for investors. It enables 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 5DL’s recent performance announced on 30 June 2017 and weigh these figures against its long-term trend and industry movements. Check out our latest analysis for Koon Holdings
How Well Did 5DL Perform?
For the most up-to-date info, I use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This technique allows me to assess different companies in a uniform manner using the most relevant data points. For Koon Holdings, its most recent bottom-line (trailing twelve month) is -S$59.00K, which, relative to last year’s level, has turned from positive to negative. Since these values may be relatively myopic, I’ve determined an annualized five-year figure for 5DL’s net income, which stands at S$2.36M.
We can further analyze Koon Holdings’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Koon Holdings’s top-line has grown by 10.84% on average, indicating that the company is in a high-growth period with expenses racing ahead revenues, leading to annual losses. Scanning growth from a sector-level, the SG construction industry has been enduring some headwinds over the past few years, leading to an average earnings drop of -9.85% in the most recent year. This suggests that any near-term the industry is enduring, it’s hitting Koon Holdings harder than its peers.
What does this mean?
Koon 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 insightful step is to assess company-specific issues Koon Holdings may be facing and whether management guidance has consistently been met in the past. You should continue to research Koon Holdings to get a better picture of the stock by looking at:
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1. Financial Health: Is 5DL’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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2. 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 2017. This may not be consistent with full year annual report figures.
To help readers see pass 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.