Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at SAMT Co., Ltd.’s (KOSDAQ:A031330) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.
Could A031330 beat the long-term trend and outperform its industry?
A031330’s trailing twelve-month earnings (from 31 December 2019) of ₩31b has increased by 8.6% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 17%, indicating the rate at which A031330 is growing has slowed down. Why could this be happening? Well, let’s take a look at what’s occurring with margins and if the whole industry is facing the same headwind.
In terms of returns from investment, SAMT has fallen short of achieving a 20% return on equity (ROE), recording 13% instead. However, its return on assets (ROA) of 12% exceeds the KR Electronic industry of 4.6%, indicating SAMT has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for SAMT’s debt level, has declined over the past 3 years from 17% to 14%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research SAMT to get a better picture of the stock by looking at:
- Financial Health: Are A031330’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 A031330 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 A031330 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 firstname.lastname@example.org. 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
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