Want To Invest In China Ceramics Co Ltd. (NASDAQ:CCCL)? Here's How It Performed Lately

For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine China Ceramics Co Ltd.'s (NASDAQ:CCCL) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers. View our latest analysis for China Ceramics

Was CCCL's recent earnings decline worse than the long-term trend and the industry?

To account for any quarterly or half-yearly updates, I use 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 technique allows me to examine different stocks on a more comparable basis, using the latest information. For China Ceramics, its latest trailing-twelve-month earnings is -CN¥357.13M, which, against last year’s figure, has become more negative. Since these values are relatively myopic, I’ve created an annualized five-year figure for CCCL's earnings, which stands at -CN¥194.40K. This doesn't look much better, as earnings seem to have consistently been getting more and more negative over time.

We can further analyze China Ceramics's loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years China Ceramics has seen an annual decline in revenue of -9.61%, on average. This adverse movement is a driver of the company's inability to reach breakeven. Has the entire industry experienced this headwind? Eyeballing growth from a sector-level, the US building industry has been growing its average earnings by double-digit 17.21% in the previous twelve months, and 17.40% over the past five years. This means whatever uplift the industry is enjoying, China Ceramics has not been able to realize the gains unlike its average peer.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always hard to predict what will happen in the future and when. The most insightful step is to assess company-specific issues China Ceramics may be facing and whether management guidance has dependably been met in the past. You should continue to research China Ceramics to get a more holistic view of the stock by looking at the areas below. Just a heads up - to access some parts of the Simply Wall St research tool you might be asked to create a free account, but it takes just one click and the information they provide is definitely worth it in my opinion.

• 1. Financial Health: Is CCCL’s operations financially sustainable? Balance sheets can be hard to analyze, which is why Simply Wall St does it for you. Check out important financial health checks here.
• 2. Valuation: What is CCCL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in this free research report helps visualize whether CCCL is currently mispriced by the market.
• 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore a free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 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.