Yahoo News Interested In Matrix Holdings Limited (HKG:1005)? Here's What Its Recent Performance Looks Like
Investors with a long-term horizong may find it valuable to assess Matrix Holdings Limited's (SEHK:1005) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. Below is my commentary, albiet very simple and high-level, on how Matrix Holdings is currently performing.
Check out our latest analysis for Matrix Holdings
Could 1005 beat the long-term trend and outperform its industry?
1005's trailing twelve-month earnings (from 31 December 2019) of HK$143m has increased by 6.0% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -10%, indicating the rate at which 1005 is growing has accelerated. What's the driver of this growth? Let's see whether it is only a result of industry tailwinds, or if Matrix Holdings has experienced some company-specific growth.
In terms of returns from investment, Matrix Holdings has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 10% exceeds the HK Leisure industry of 6.0%, indicating Matrix Holdings has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Matrix Holdings’s debt level, has declined over the past 3 years from 14% to 14%.
What does this mean?
Matrix Holdings's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Recent positive growth doesn’t necessarily mean it’s onwards and upwards for the company. I recommend you continue to research Matrix Holdings to get a better picture of the stock by looking at:
Financial Health: Are 1005’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 1005 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 1005 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 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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