Yahoo Finance How Does Currency Exchange International, Corp.’s (TSE:CXI) Earnings Growth Stack Up Against Industry Performance?
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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 Currency Exchange International, Corp. (TSE:CXI) useful as an attempt to give more color around how Currency Exchange International is currently performing.
See our latest analysis for Currency Exchange International
Did CXI’s recent earnings growth beat the long-term trend and the industry?
CXI’s trailing twelve-month earnings (from 31 October 2018) of US$4.2m has jumped 11% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 5.3%, indicating the rate at which CXI is growing has accelerated. What’s enabled this growth? Let’s take a look at whether it is solely attributable to industry tailwinds, or if Currency Exchange International has seen some company-specific growth.
In terms of returns from investment, Currency Exchange International has fallen short of achieving a 20% return on equity (ROE), recording 6.7% instead. However, its return on assets (ROA) of 6.3% exceeds the CA Consumer Finance industry of 5.3%, indicating Currency Exchange International has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Currency Exchange International’s debt level, has declined over the past 3 years from 12% to 12%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Currency Exchange International has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research Currency Exchange International to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for CXI’s future growth? Take a look at our free research report of analyst consensus for CXI’s outlook.
Financial Health: Are CXI’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 October 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.
