Yahoo Finance Has Boyuan Construction Group, Inc. (TSE:BOY) Improved Earnings Growth In Recent Times?
Assessing Boyuan Construction Group, Inc.'s (TSX:BOY) performance as a company requires looking at more than just a years' earnings data. Below, I will run you through a simple sense check to build perspective on how Boyuan Construction Group is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its construction industry peers.
Check out our latest analysis for Boyuan Construction Group
How Well Did BOY Perform?
BOY's trailing twelve-month earnings (from 31 December 2019) of US$20m has jumped 42% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 18%, indicating the rate at which BOY is growing has accelerated. What's the driver of this growth? Let's see whether it is only owing to an industry uplift, or if Boyuan Construction Group has experienced some company-specific growth.
In terms of returns from investment, Boyuan Construction Group has fallen short of achieving a 20% return on equity (ROE), recording 15% instead. However, its return on assets (ROA) of 6.3% exceeds the CA Construction industry of 4.5%, indicating Boyuan Construction Group has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Boyuan Construction Group’s debt level, has increased over the past 3 years from 1.9% to 12%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 87% to 75% over the past 5 years.
What does this mean?
Boyuan Construction Group's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While Boyuan Construction Group has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. You should continue to research Boyuan Construction Group to get a better picture of the stock by looking at:
Financial Health: Are BOY’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 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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