Venture Corporation Limited (SGX:V03): Did It Outperform The Industry?
For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine Venture Corporation Limited's (SGX:V03) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers.
View our latest analysis for Venture
Did V03 perform better than its track record and industry?
V03's trailing twelve-month earnings (from 31 December 2019) of S$363m has declined by -1.9% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 30%, indicating the rate at which V03 is growing has slowed down. Why is this? Well, let's look at what's transpiring with margins and if the whole industry is experiencing the hit as well.
In terms of returns from investment, Venture has fallen short of achieving a 20% return on equity (ROE), recording 15% instead. However, its return on assets (ROA) of 11% exceeds the SG Electronic industry of 4.4%, indicating Venture has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Venture’s debt level, has increased over the past 3 years from 10% to 16%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 9.4% to 0.04% over the past 5 years.
What does this mean?
Venture's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors affecting its business. I recommend you continue to research Venture to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for V03’s future growth? Take a look at our free research report of analyst consensus for V03’s outlook.
Financial Health: Are V03’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 2019. This may not be consistent with full year annual report figures.
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.
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