Yahoo Finance Has Curtiss-Wright Corporation (NYSE:CW) Improved Earnings Growth In Recent Times?
After looking at Curtiss-Wright Corporation's (NYSE:CW) latest earnings update (30 June 2019), I found it helpful to revisit the company's performance in the past couple of years and compare this against the latest numbers. As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. Also, comparing it against an industry benchmark to understand whether it outperformed, or is simply riding an industry wave, is an important aspect. In this article I briefly touch on my key findings.
Check out our latest analysis for Curtiss-Wright
How Did CW's Recent Performance Stack Up Against Its Past?
CW's trailing twelve-month earnings (from 30 June 2019) of US$293m has jumped 17% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 12%, indicating the rate at which CW is growing has accelerated. What's the driver of this growth? Well, let’s take a look at whether it is only due to an industry uplift, or if Curtiss-Wright has seen some company-specific growth.
In terms of returns from investment, Curtiss-Wright has fallen short of achieving a 20% return on equity (ROE), recording 18% instead. However, its return on assets (ROA) of 9.5% exceeds the US Aerospace & Defense industry of 6.6%, indicating Curtiss-Wright has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Curtiss-Wright’s debt level, has increased over the past 3 years from 12% to 14%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 59% to 46% over the past 5 years.
What does this mean?
Though Curtiss-Wright's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Curtiss-Wright gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Curtiss-Wright to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for CW’s future growth? Take a look at our free research report of analyst consensus for CW’s outlook.
Financial Health: Are CW’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 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.
