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Analyzing Frencken Group Limited's (SGX:E28) 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 E28's recent performance announced on 31 March 2019 and compare these figures to its long-term trend and industry movements.

See our latest analysis for Frencken Group

Could E28 beat the long-term trend and outperform its industry?

E28's trailing twelve-month earnings (from 31 March 2019) of S$32m has jumped 33% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 22%, indicating the rate at which E28 is growing has accelerated. How has it been able to do this? Well, let’s take a look at whether it is merely because of an industry uplift, or if Frencken Group has experienced some company-specific growth.

In terms of returns from investment, Frencken Group has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 6.9% exceeds the SG Machinery industry of 5.1%, indicating Frencken Group has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Frencken Group’s debt level, has increased over the past 3 years from 8.6% to 15%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 26% to 24% over the past 5 years.

What does this mean?

Though Frencken Group's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Frencken Group gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Frencken Group to get a better picture of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for E28’s future growth? Take a look at our free research report of analyst consensus for E28’s outlook.

2. Financial Health: Are E28’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.