YHI International Limited's (SGX:BPF) Earnings Dropped -5.6%, How Did It Fare Against The Industry?
Measuring YHI International Limited's (SGX:BPF) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess BPF's recent performance announced on 31 December 2019 and weigh these figures against its long-term trend and industry movements.
Check out our latest analysis for YHI International
Commentary On BPF's Past Performance
BPF's trailing twelve-month earnings (from 31 December 2019) of S$13m has declined by -5.6% 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 17%, indicating the rate at which BPF is growing has slowed down. Why is this? Well, let’s take a look at what’s transpiring with margins and if the entire industry is facing the same headwind.
In terms of returns from investment, YHI International has fallen short of achieving a 20% return on equity (ROE), recording 4.8% instead. Furthermore, its return on assets (ROA) of 4.3% is below the SG Retail Distributors industry of 4.3%, indicating YHI International's are utilized less efficiently. However, its return on capital (ROC), which also accounts for YHI International’s debt level, has increased over the past 3 years from 3.9% to 4.0%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 49% to 27% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors influencing its business. I recommend you continue to research YHI International to get a better picture of the stock by looking at:
Financial Health: Are BPF’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 BPF 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 BPF 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.
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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