Yahoo Finance Does Anpario plc's (LON:ANP) 34% Earnings Growth Make It An Outperformer?
After looking at Anpario plc's (LON:ANP) latest earnings update (31 December 2018), 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.
See our latest analysis for Anpario
Were ANP's earnings stronger than its past performances and the industry?
ANP's trailing twelve-month earnings (from 31 December 2018) of UK£4.0m has jumped 34% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 4.7%, indicating the rate at which ANP is growing has accelerated. How has it been able to do this? Let's take a look at if it is solely attributable to an industry uplift, or if Anpario has experienced some company-specific growth.
In terms of returns from investment, Anpario has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 10% exceeds the GB Food industry of 5.3%, indicating Anpario has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Anpario’s debt level, has declined over the past 3 years from 13% to 12%.
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 Anpario gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Anpario to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for ANP’s future growth? Take a look at our free research report of analyst consensus for ANP’s outlook.
Financial Health: Are ANP’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 31 December 2018. 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.
