Want To Invest In Huon Aquaculture Group Limited (ASX:HUO)? Here's How It Performed Lately

In this article, I will take a look at Huon Aquaculture Group Limited's (ASX:HUO) most recent earnings update (31 December 2017) and compare these latest figures against its performance over the past few years, along with how the rest of HUO's industry performed. As a long-term investor, I find it useful to analyze the company's trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time. Check out our latest analysis for Huon Aquaculture Group

Were HUO's earnings stronger than its past performances and the industry?

I look at data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This allows me to analyze different companies in a uniform manner using the latest information. For Huon Aquaculture Group, its most recent bottom-line (trailing twelve month) is AU$38.29M, which, in comparison to the prior year's figure, has risen by a fairly unexciting 5.77%. Given that these values are somewhat short-term, I’ve created an annualized five-year figure for Huon Aquaculture Group's net income, which stands at AU$21.26M This shows that, generally, Huon Aquaculture Group has been able to steadily raise its earnings over the last few years as well.

What's enabled this growth? Well, let’s take a look at if it is merely because of industry tailwinds, or if Huon Aquaculture Group has seen some company-specific growth. In the last couple of years, Huon Aquaculture Group grew its bottom line faster than revenue by successfully controlling its costs. This brought about a margin expansion and profitability over time. Viewing growth from a sector-level, the Australian food industry has been enduring some headwinds in the previous year, leading to an average earnings drop of -2.04%. This is a momentous change, given that the industry has constantly been delivering a a solid growth of 18.63% in the last five years. This suggests that any near-term headwind the industry is enduring, Huon Aquaculture Group is less exposed compared to its peers.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Huon Aquaculture Group gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Huon Aquaculture Group to get a better picture of the stock by looking at:

• 1. Future Outlook: What are well-informed industry analysts predicting for HUO’s future growth? Take a look at our free research report of analyst consensus for HUO’s outlook.
• 2. Financial Health: Is HUO’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.
• 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 trailing twelve months from 31 December 2017. This may not be consistent with full year annual report figures.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.