Assessing Beijing Capital International Airport Company Limited’s (HKG:694) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess 694’s recent performance announced on 30 June 2018 and evaluate these figures to its long-term trend and industry movements.
How Did 694’s Recent Performance Stack Up Against Its Past?
694’s trailing twelve-month earnings (from 30 June 2018) of CN¥2.8b has jumped 32% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 17%, indicating the rate at which 694 is growing has accelerated. How has it been able to do this? Let’s see if it is solely owing to industry tailwinds, or if Beijing Capital International Airport has seen some company-specific growth.
In terms of returns from investment, Beijing Capital International Airport has fallen short of achieving a 20% return on equity (ROE), recording 13% instead. However, its return on assets (ROA) of 9.5% exceeds the HK Infrastructure industry of 5.4%, indicating Beijing Capital International Airport has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Beijing Capital International Airport’s debt level, has increased over the past 3 years from 8.3% to 15%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 93% to 22% over the past 5 years.
What does this mean?
Though Beijing Capital International Airport’s past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Beijing Capital International Airport gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Beijing Capital International Airport to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for 694’s future growth? Take a look at our free research report of analyst consensus for 694’s outlook.
- Financial Health: Are 694’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 firstname.lastname@example.org.