Yahoo Finance Interested In GUD Holdings Limited (ASX:GUD)? Here's What Its Recent Performance Looks Like
In this commentary, I will examine GUD Holdings Limited's (ASX:GUD) latest earnings update (30 June 2019) and compare these figures against its performance over the past couple of years, as well as how the rest of the auto components industry performed. As an investor, I find it beneficial to assess GUD’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time.
Check out our latest analysis for GUD Holdings
Commentary On GUD's Past Performance
GUD's trailing twelve-month earnings (from 30 June 2019) of AU$60m has jumped 18% 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 19%, indicating the rate at which GUD is growing has slowed down. What could be happening here? Well, let's look at what's transpiring with margins and if the rest of the industry is experiencing the hit as well.
In terms of returns from investment, GUD Holdings has invested its equity funds well leading to a 21% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 13% exceeds the AU Auto Components industry of 4.6%, indicating GUD Holdings has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for GUD Holdings’s debt level, has increased over the past 3 years from 18% to 20%.
What does this mean?
GUD Holdings's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as GUD Holdings gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research GUD Holdings to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for GUD’s future growth? Take a look at our free research report of analyst consensus for GUD’s outlook.
Financial Health: Are GUD’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 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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