Want To Invest In Beijing Enterprises Environment Group Limited (HKG:154)? Here's How It Performed Lately
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Improvement in profitability and outperformance against the industry can be important characteristics in a stock for some investors. Below, I will assess Beijing Enterprises Environment Group Limited's (HKG:154) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.
View our latest analysis for Beijing Enterprises Environment Group
Could 154 beat the long-term trend and outperform its industry?
154's trailing twelve-month earnings (from 31 December 2018) of HK$265m has jumped 39% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 54%, indicating the rate at which 154 is growing has slowed down. Why could this be happening? Well, let's examine what's occurring with margins and whether the whole industry is facing the same headwind.
In terms of returns from investment, Beijing Enterprises Environment Group has fallen short of achieving a 20% return on equity (ROE), recording 9.5% instead. Furthermore, its return on assets (ROA) of 3.2% is below the HK Commercial Services industry of 6.3%, indicating Beijing Enterprises Environment Group's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Beijing Enterprises Environment Group’s debt level, has increased over the past 3 years from 1.6% to 5.4%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Beijing Enterprises Environment Group gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Beijing Enterprises Environment Group to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for 154’s future growth? Take a look at our free research report of analyst consensus for 154’s outlook.
Financial Health: Are 154’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.
