Does Kingdee International Software Group Company Limited's (HKG:268) Past Performance Indicate A Stronger Future?
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For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Kingdee International Software Group Company Limited (HKG:268) useful as an attempt to give more color around how Kingdee International Software Group is currently performing.
See our latest analysis for Kingdee International Software Group
How Well Did 268 Perform?
268's trailing twelve-month earnings (from 31 December 2018) of CN¥412m has jumped 33% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 18%, indicating the rate at which 268 is growing has accelerated. How has it been able to do this? Let's take a look at whether it is solely attributable to an industry uplift, or if Kingdee International Software Group has experienced some company-specific growth.
In terms of returns from investment, Kingdee International Software Group has fallen short of achieving a 20% return on equity (ROE), recording 7.4% instead. Furthermore, its return on assets (ROA) of 4.8% is below the HK Software industry of 5.0%, indicating Kingdee International Software Group's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Kingdee International Software Group’s debt level, has declined over the past 3 years from 7.1% to 6.2%.
What does this mean?
Though Kingdee International Software 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 Kingdee International Software Group gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Kingdee International Software Group to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for 268’s future growth? Take a look at our free research report of analyst consensus for 268’s outlook.
Financial Health: Are 268’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 December 2018. 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.
