Brilliant Circle Holdings International Limited's (HKG:1008) Earnings Grew 3.8%, Did It Beat Long-Term Trend?
Analyzing Brilliant Circle Holdings International Limited's (SEHK:1008) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess 1008's recent performance announced on 31 December 2019 and compare these figures to its long-term trend and industry movements.
See our latest analysis for Brilliant Circle Holdings International
How Did 1008's Recent Performance Stack Up Against Its Past?
1008's trailing twelve-month earnings (from 31 December 2019) of HK$176m has increased by 3.8% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -27%, indicating the rate at which 1008 is growing has accelerated. How has it been able to do this? Let's take a look at whether it is merely because of industry tailwinds, or if Brilliant Circle Holdings International has experienced some company-specific growth.
In terms of returns from investment, Brilliant Circle Holdings International has fallen short of achieving a 20% return on equity (ROE), recording 6.0% instead. Furthermore, its return on assets (ROA) of 5.3% is below the HK Commercial Services industry of 6.3%, indicating Brilliant Circle Holdings International's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Brilliant Circle Holdings International’s debt level, has declined over the past 3 years from 8.3% to 6.7%.
What does this mean?
Though Brilliant Circle Holdings International's past data is helpful, it is only one aspect of my investment thesis. Recent positive growth isn't always indicative of a continued optimistic outlook. There may be factors that are influencing the industry as a whole, hence the high industry growth rate over the same period of time. You should continue to research Brilliant Circle Holdings International to get a more holistic view of the stock by looking at:
Financial Health: Are 1008’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.
Valuation: What is 1008 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether 1008 is currently mispriced by the market.
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 December 2019. This may not be consistent with full year annual report figures.
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