For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Time Watch Investments Limited (SEHK:2033) useful as an attempt to give more color around how Time Watch Investments is currently performing.

See our latest analysis for Time Watch Investments

2033s trailing twelve-month earnings (from 30 June 2019) of HK$305m has increased by 4.8% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -3.9%, indicating the rate at which 2033 is growing has accelerated. How has it been able to do this? Well, lets take a look at whether it is solely because of industry tailwinds, or if Time Watch Investments has experienced some company-specific growth.

In terms of returns from investment, Time Watch Investments has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 10.0% exceeds the HK Luxury industry of 5.3%, indicating Time Watch Investments has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Time Watch Investmentss debt level, has declined over the past 3 years from 18% to 14%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 2.4% to 9.5% over the past 5 years.

Though Time Watch Investmentss past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Time Watch Investments gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Time Watch Investments to get a better picture of the stock by looking at:

NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2019. This may not be consistent with full year annual report figures.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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. Thank you for reading.

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Does Time Watch Investments Limiteds (HKG:2033) Past Performance Indicate A Stronger Future? - Simply Wall St