Yahoo Finance Was Genting Singapore Limited’s (SGX:G13) Earnings Growth Better Than The Industry’s?
Understanding Genting Singapore Limited’s (SGX:G13) performance as a company requires examining more than earnings from one point in time. Today I will take you through a basic sense check to gain perspective on how Genting Singapore is doing by evaluating its latest earnings with its longer term trend as well as its industry peers’ performance over the same period.
Check out our latest analysis for Genting Singapore
Did G13 beat its long-term earnings growth trend and its industry?
G13’s trailing twelve-month earnings (from 30 September 2018) of S$738m has jumped 18% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 2.7%, indicating the rate at which G13 is growing has accelerated. What’s the driver of this growth? Let’s see whether it is merely attributable to an industry uplift, or if Genting Singapore has experienced some company-specific growth.
In terms of returns from investment, Genting Singapore has fallen short of achieving a 20% return on equity (ROE), recording 9.7% instead. However, its return on assets (ROA) of 8.1% exceeds the SG Hospitality industry of 4.0%, indicating Genting Singapore has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Genting Singapore’s debt level, has increased over the past 3 years from 7.8% to 11%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 25% to 14% over the past 5 years.
What does this mean?
Though Genting Singapore’s past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Genting Singapore gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Genting Singapore to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for G13’s future growth? Take a look at our free research report of analyst consensus for G13’s outlook.
Financial Health: Are G13’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 September 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 editorial-team@simplywallst.com.
