Yahoo Finance Has Asia Enterprises Holding Limited (SGX:A55) Improved Earnings Growth In Recent Times?
In this article, I will take a look at Asia Enterprises Holding Limited’s (SGX:A55) most recent earnings update (31 March 2018) and compare these latest figures against its performance over the past few years, along with how the rest of A55’s industry performed. As a long-term investor, I find it useful to analyze the company’s trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time. View our latest analysis for Asia Enterprises Holding
Could A55 beat the long-term trend and outperform its industry?
I look at data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This blend enables me to analyze various companies on a more comparable basis, using the latest information. For Asia Enterprises Holding, its most recent earnings (trailing twelve month) is S$2.07M, which, in comparison to the previous year’s figure, has risen by more than double. Since these figures may be relatively myopic, I have estimated an annualized five-year figure for Asia Enterprises Holding’s earnings, which stands at S$1.20M This shows that, on average, Asia Enterprises Holding has been able to steadily improve its profits over the last couple of years as well.
How has it been able to do this? Let’s see if it is solely because of an industry uplift, or if Asia Enterprises Holding has seen some company-specific growth. Though both top-line and bottom-line growth rates in the past few years, were, on average, negative, earnings were more so. While this has led to a margin contraction, it has cushioned Asia Enterprises Holding’s earnings contraction. Viewing growth from a sector-level, the SG trade distributors industry has been growing its average earnings by double-digit 36.69% in the previous twelve months, . This is a turnaround from a volatile drop of -13.56% in the last couple of years. This shows that, in the recent industry expansion, Asia Enterprises Holding is capable of leveraging this to its advantage.
What does this mean?
Asia Enterprises Holding’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While Asia Enterprises Holding has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Asia Enterprises Holding to get a more holistic view of the stock by looking at:
Financial Health: Is A55’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 2018. This may not be consistent with full year annual report figures.
To help readers see pass 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.
