Yahoo Finance Interested In K. Wah International Holdings Limited (HKG:173)? Here’s What Its Recent Performance Looks Like
Investors with a long-term horizong may find it valuable to assess K. Wah International Holdings Limited’s (HKG:173) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. Below is my commentary, albiet very simple and high-level, on how K. Wah International Holdings is currently performing.
View our latest analysis for K. Wah International Holdings
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Could 173 beat the long-term trend and outperform its industry?
173’s trailing twelve-month earnings (from 31 December 2018) of HK$4.0b has increased by 3.6% 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 21%, indicating the rate at which 173 is growing has slowed down. Why could this be happening? Well, let’s look at what’s transpiring with margins and if the rest of the industry is facing the same headwind.
In terms of returns from investment, K. Wah International Holdings has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 5.8% exceeds the HK Real Estate industry of 3.7%, indicating K. Wah International Holdings has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for K. Wah International Holdings’s debt level, has increased over the past 3 years from 6.3% to 7.2%.
What does this mean?
Though K. Wah International Holdings’s past data is helpful, it is only one aspect of my investment thesis. While K. Wah International Holdings 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 K. Wah International Holdings to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for 173’s future growth? Take a look at our free research report of analyst consensus for 173’s outlook.
Financial Health: Are 173’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.
