With 23% Earnings Growth, Did PNE Industries Ltd (SGX:BDA) Outperform The Industry?
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For long-term investors, assessing earnings trend over time and against industry benchmarks is more beneficial than examining a single earnings announcement at a point in time. Investors may find my commentary, albeit very high-level and brief, on PNE Industries Ltd (SGX:BDA) useful as an attempt to give more color around how PNE Industries is currently performing.
See our latest analysis for PNE Industries
How Did BDA's Recent Performance Stack Up Against Its Past?
BDA's trailing twelve-month earnings (from 31 March 2019) of S$6.7m has jumped 23% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -12%, indicating the rate at which BDA is growing has accelerated. What's enabled this growth? Let's take a look at if it is only a result of industry tailwinds, or if PNE Industries has experienced some company-specific growth.
In terms of returns from investment, PNE Industries has fallen short of achieving a 20% return on equity (ROE), recording 8.3% instead. However, its return on assets (ROA) of 6.1% exceeds the SG Electronic industry of 4.4%, indicating PNE Industries has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for PNE Industries’s debt level, has declined over the past 3 years from 13% to 8.4%.
What does this mean?
Though PNE Industries's past data is helpful, it is only one aspect of my investment thesis. Recent positive growth doesn’t necessarily mean it’s onwards and upwards for the company. I recommend you continue to research PNE Industries to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for BDA’s future growth? Take a look at our free research report of analyst consensus for BDA’s outlook.
Financial Health: Are BDA’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.
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.
