Assessing SUTL Enterprise Limited’s (SGX:BHU) 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 BHU’s recent performance announced on 30 September 2017 and evaluate these figures to its long-term trend and industry movements. See our latest analysis for SUTL Enterprise
Commentary On BHU’s Past Performance
I prefer to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This enables me to assess different companies on a more comparable basis, using the latest information. SUTL Enterprise’s most recent earnings is SGD4.1M, which, relative to the previous year’s figure, has jumped up by 27.16%. Given that these figures are fairly short-term thinking, I have estimated an annualized five-year figure for SUTL Enterprise’s net income, which stands at SGD3.4M. This shows that, generally, SUTL Enterprise has been able to steadily improve its net income over the past couple of years as well.
How has it been able to do this? Let’s see whether it is merely owing to an industry uplift, or if SUTL Enterprise has seen some company-specific growth. In the last few years, SUTL Enterprise expanded bottom-line, while its top-line declined, by efficiently managing its costs. This has caused to a margin expansion and profitability over time. Looking at growth from a sector-level, the SG hospitality industry has been growing, albeit, at a unexciting single-digit rate of 9.90% over the past twelve months, . This is a change from a volatile drop of -4.63% in the previous few years. This suggests that, in the recent industry expansion, SUTL Enterprise is able to leverage this to its advantage.
What does this mean?
SUTL Enterprise’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While SUTL Enterprise has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research SUTL Enterprise to get a better picture of the stock by looking at:
1. Financial Health: Is BHU’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.
2. Valuation: What is BHU 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 BHU is currently mispriced by the market.
3. 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 last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. 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.