When Micro-Mechanics (Holdings) Ltd. (SGX: 5DD) published its latest earnings update (September 30, 2018), which I compared to two factors: its historical results and the performance of its industry peers on average. To be able to interpret the progress of micromechanics (Holdings) so far, you must evaluate its performance against a benchmark, rather than looking at a standalone number at a given time. In this article, I summarized the key points of the 5DD performance. See our latest analysis for micromechanics (Holdings)

Did 5DD's revenues improve compared to past performance and the sector?

The profits of the 5DD over the last twelve months (as of September 30, 2018) of S $ 16 million decreased by -0.4% compared to the previous year. In addition, this growth rate on a year is lower than the average earnings growth rate of the last five years. 18%, indicating that the growth rate of 5DD has slowed. What could happen here? Now let's see what happens with the margins and if the whole sector feels the heat.

SGX: Export Profit and Loss Account 5DD 10 January 19Read more

In terms of investment returns, Micro-Mechanics (Holdings) invested well in its equity funds, generating a return on equity (ROE) of 26%, above the reasonable minimum of 20%. In addition, its return on assets (ROA) of 21% is higher than that of SG Semiconductor by 17%, indicating that Micro-Mechanics (Holdings) has used its assets more efficiently. Finally, its return on capital (ROC), which also represents the level of debt of Micro-Mechanics (Holdings), has increased over the last 3 years, from 29% to 30%.

What does it mean?

Past data is useful, but it does not tell the whole story. Profitable but unpredictable businesses can have many factors that affect their business. You must continue to research micromechanics (Holdings) to obtain a better picture of the title by consulting:

  1. Future prospects: What do well-informed industry analysts predict for the future growth of 5DD? Watch our analyst consensus free research report for the prospects of 5DD.
  2. Financial health: Are 5DD operations financially viable? Balance sheets can be difficult to analyze, which is why we have done it for you. Discover our financial health checks here.
  3. Other performing stocks: Are there other stocks offering better prospects with proven track records? Explore our free list of these large stocks here.

NB: The figures in this article are based on data for the last twelve months from September 30, 2018. This may not be consistent with the figures in the full annual report. To help readers understand the past volatility of the financial market, we aim for you a long-term research analysis focused solely on fundamental data. Please note that our analysis does not take into account the latest price sensitive business announcements. The author is an independent contributor and, at the time of publication, he did not hold any position on the mentioned actions. For errors requiring correction, please contact the publisher at the address editorial-team@simplywallst.com.