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Analyzing International Equities Corporation Limited’s (ASX:IEQ) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess IEQ’s recent performance announced on 31 December 2017 and compare these figures to its long-term trend and industry movements.
Did IEQ perform better than its track record and industry?
IEQ recently turned a profit of AU$855.00k (most recent trailing twelve-months) compared to its average loss of -AU$142.90k over the past five years.
Over the past couple of years, International Equities grew bottom-line, while its top-line declined, by effectively managing its costs. This resulted in to a margin expansion and profitability over time. Scanning growth from a sector-level, the Australian real estate industry has been growing, albeit, at a muted single-digit rate of 7.04% over the past year, and a substantial 32.96% over the past half a decade. This growth is a median of profitable companies of 21 Real Estate companies in AU including Eureka Group Holdings, Tian An Australia and Velocity Property Group. This means that whatever tailwind the industry is deriving benefit from, International Equities has not been able to reap as much as its industry peers.
ASX:IEQ Income Statement Export August 13th 18 In terms of returns from investment, International Equities has not invested its equity funds well, leading to a 5.75% return on equity (ROE), below the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 5.34% is below the AU Real Estate industry of 6.13%, indicating International Equities’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for International Equities’s debt level, has increased over the past 3 years from 0.44% to 4.82%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 220.05% to 139.92% over the past 5 years.
What does this mean?
Though International Equities’s past data is helpful, it is only one aspect of my investment thesis. I suggest you continue to research International Equities to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for IEQ’s future growth? Take a look at our free research report of analyst consensus for IEQ’s outlook.
- Financial Health: Are IEQ’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 2017. 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 firstname.lastname@example.org.
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