Yahoo Finance Does Multi-Chem Limited’s (SGX:AWZ) Recent Track Record Look Strong?
Today I will take a look at Multi-Chem Limited’s (SGX:AWZ) most recent earnings update (31 March 2018) and compare these latest figures against its performance over the past few years, as well as how the rest of the electronic industry performed. As an investor, I find it beneficial to assess AWZ’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 Multi-Chem
Were AWZ’s earnings stronger than its past performances and the industry?
I use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This technique enables me to analyze different companies in a uniform manner using new information. For Multi-Chem, its most recent trailing-twelve-month earnings is S$12.21M, which compared to the prior year’s figure, has risen by 30.74%. Since these figures are somewhat short-term, I have created an annualized five-year value for AWZ’s net income, which stands at S$6.09M This means generally, Multi-Chem has been able to gradually raise its bottom line over the last few years as well.
What’s enabled this growth? Let’s see if it is only due to industry tailwinds, or if Multi-Chem has experienced some company-specific growth. In the past couple of years, Multi-Chem expanded its bottom line faster than revenue by successfully controlling its costs. This resulted in a margin expansion and profitability over time. Scanning growth from a sector-level, the SG electronic industry has been growing its average earnings by double-digit 34.80% over the prior year, and a more subdued 8.04% over the past half a decade. This means whatever uplift the industry is profiting from, Multi-Chem has not been able to reap as much as its average peer.
What does this mean?
Multi-Chem’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Multi-Chem to get a better picture of the stock by looking at:
Financial Health: Is AWZ’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.
Valuation: What is AWZ worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AWZ is currently mispriced by the market.
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.
