Yahoo Finance Ausnutria Dairy Corporation Ltd (HKG:1717): Has Recent Earnings Growth Beaten Long-Term Trend?
Measuring Ausnutria Dairy Corporation Ltd's (SEHK:1717) track record of past performance is a valuable exercise for investors. It allows 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 1717's recent performance announced on 31 March 2020 and compare these figures to its historical trend and industry movements.
View our latest analysis for Ausnutria Dairy
How 1717 fared against its long-term earnings performance and its industry
1717's trailing twelve-month earnings (from 31 March 2020) of CN¥996m has jumped 46% 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 49%, indicating the rate at which 1717 is growing has slowed down. Why could this be happening? Well, let's examine what's occurring with margins and if the entire industry is facing the same headwind.
In terms of returns from investment, Ausnutria Dairy has invested its equity funds well leading to a 25% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 12% exceeds the HK Food industry of 6.4%, indicating Ausnutria Dairy has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Ausnutria Dairy’s debt level, has increased over the past 3 years from 13% to 24%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 45% to 23% over the past 5 years.
What does this mean?
Ausnutria Dairy's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While Ausnutria Dairy has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research Ausnutria Dairy to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for 1717’s future growth? Take a look at our free research report of analyst consensus for 1717’s outlook.
Financial Health: Are 1717’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 March 2020. This may not be consistent with full year annual report figures.
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