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Understanding how Silver Touch Technologies Limited (NSE:SILVERTUC) is performing as a company requires looking at more than just a years' earnings. Today I will run you through a basic sense check to gain perspective on how Silver Touch Technologies is doing by comparing its latest earnings with its long-term trend as well as the performance of its it industry peers.

Check out our latest analysis for Silver Touch Technologies

Could SILVERTUC beat the long-term trend and outperform its industry?

SILVERTUC's trailing twelve-month earnings (from 31 March 2019) of ₹105m has jumped 28% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 20%, indicating the rate at which SILVERTUC is growing has accelerated. How has it been able to do this? Well, let’s take a look at whether it is only because of an industry uplift, or if Silver Touch Technologies has seen some company-specific growth.

In terms of returns from investment, Silver Touch Technologies has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 9.3% exceeds the IN IT industry of 9.0%, indicating Silver Touch Technologies has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Silver Touch Technologies’s debt level, has increased over the past 3 years from 16% to 19%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 37% to 11% over the past 5 years.

What does this mean?

While past data is useful, it doesn’t tell the whole story. While Silver Touch Technologies has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research Silver Touch Technologies to get a more holistic view of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for SILVERTUC’s future growth? Take a look at our free research report of analyst consensus for SILVERTUC’s outlook.

2. Financial Health: Are SILVERTUC’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.

3. 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.