In This Article:
Today I will examine Orbit Exports Limited’s (NSE:ORBTEXP) latest earnings update (31 March 2018) and compare these figures against its performance over the past couple of years, in addition to how the rest of ORBTEXP’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.
Check out our latest analysis for Orbit Exports
Commentary On ORBTEXP’s Past Performance
ORBTEXP’s trailing twelve-month earnings (from 31 March 2018) of ₹270m has jumped 26% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 9.2%, indicating the rate at which ORBTEXP is growing has accelerated. How has it been able to do this? Let’s take a look at if it is solely a result of an industry uplift, or if Orbit Exports has experienced some company-specific growth.
In terms of returns from investment, Orbit Exports has fallen short of achieving a 20% return on equity (ROE), recording 19% instead. However, its return on assets (ROA) of 14% exceeds the IN Luxury industry of 5.7%, indicating Orbit Exports has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Orbit Exports’s debt level, has declined over the past 3 years from 32% to 19%.
What does this mean?
Orbit Exports’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? You should continue to research Orbit Exports 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 ORBTEXP’s future growth? Take a look at our free research report of analyst consensus for ORBTEXP’s outlook.
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Financial Health: Are ORBTEXP’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 2018. This may not be consistent with full year annual report figures.
To help readers see past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.