Yahoo News Does BSA Limited's (ASX:BSA) Recent Track Record Look Strong?
After reading BSA Limited's (ASX:BSA) latest earnings update (31 December 2019), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. As a long-term investor I tend to pay attention to earnings trend, rather than a single number at one point in time. I also like to compare against an industry benchmark to understand whether BSA has outperformed, or whether it is simply riding an industry wave. Below is a brief commentary on my key takeaways.
See our latest analysis for BSA
Could BSA beat the long-term trend and outperform its industry?
BSA recently turned a profit of AU$11m (most recent trailing twelve-months) compared to its average loss of -AU$4.6m over the past five years.
In terms of returns from investment, BSA has invested its equity funds well leading to a 36% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 8.9% exceeds the AU Commercial Services industry of 7.2%, indicating BSA has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for BSA’s debt level, has increased over the past 3 years from 28% to 33%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 21% to 4.5% over the past 5 years.
What does this mean?
BSA's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While BSA 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 BSA to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for BSA’s future growth? Take a look at our free research report of analyst consensus for BSA’s outlook.
Financial Health: Are BSA’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 2019. This may not be consistent with full year annual report figures.
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.
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