Yahoo Finance Did SRG Global Limited’s (ASX:SRG) Recent Earnings Growth Beat The Trend?
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When SRG Global Limited (ASX:SRG) released its most recent earnings update (30 June 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Understanding how SRG Global performed requires a benchmark rather than trying to assess a standalone number at one point in time. Below is a quick commentary on how I see SRG has performed.
See our latest analysis for SRG Global
Did SRG beat its long-term earnings growth trend and its industry?
SRG recently turned a profit of AU$13m (most recent trailing twelve-months) compared to its average loss of -AU$975.1k over the past five years.
In terms of returns from investment, SRG Global has fallen short of achieving a 20% return on equity (ROE), recording 9.1% instead. Furthermore, its return on assets (ROA) of 5.5% is below the AU Construction industry of 9.3%, indicating SRG Global’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for SRG Global’s debt level, has increased over the past 3 years from 4.9% to 11%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 51% to 2.7% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While SRG Global has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I suggest you continue to research SRG Global to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for SRG’s future growth? Take a look at our free research report of analyst consensus for SRG’s outlook.
Financial Health: Are SRG’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 30 June 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
