Interested In Hokkaido Chuo Bus Co., Ltd. (SPSE:9085)? Here's What Its Recent Performance Looks Like

Improvement in profitability and outperformance against the industry can be important characteristics in a stock for some investors. Below, I will assess Hokkaido Chuo Bus Co., Ltd.'s (SPSE:9085) 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.

See our latest analysis for Hokkaido Chuo Bus

How Well Did 9085 Perform?

9085's trailing twelve-month earnings (from 31 March 2020) of JP¥220m has jumped 38% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -22%, indicating the rate at which 9085 is growing has accelerated. How has it been able to do this? Well, let’s take a look at if it is only attributable to an industry uplift, or if Hokkaido Chuo Bus has seen some company-specific growth.

In terms of returns from investment, Hokkaido Chuo Bus has fallen short of achieving a 20% return on equity (ROE), recording 0.8% instead. Furthermore, its return on assets (ROA) of 0.3% is below the JP Transportation industry of 2.7%, indicating Hokkaido Chuo Bus's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Hokkaido Chuo Bus’s debt level, has declined over the past 3 years from 5.4% to 3.0%.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Recent positive growth isn't always indicative of a continued optimistic outlook. I recommend you continue to research Hokkaido Chuo Bus to get a better picture of the stock by looking at:

1. Financial Health: Are 9085’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.
2. Valuation: What is 9085 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 9085 is currently mispriced by the market.
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 March 2020. This may not be consistent with full year annual report figures.

Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email 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. 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. Simply Wall St has no position in any stocks mentioned. Thank you for reading.