Yahoo Finance Does Ultra Electronics Holdings plc's (LON:ULE) Past Performance Indicate A Stronger Future?
Understanding how Ultra Electronics Holdings plc (LSE:ULE) is performing as a company requires looking at more than just a years' earnings. Today I will run you through a basic sense check to gain perspective on how Ultra Electronics Holdings is doing by comparing its latest earnings with its long-term trend as well as the performance of its aerospace & defense industry peers.
Check out our latest analysis for Ultra Electronics Holdings
Did ULE beat its long-term earnings growth trend and its industry?
ULE's trailing twelve-month earnings (from 30 June 2019) of UK£48m has jumped 27% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 15%, indicating the rate at which ULE is growing has accelerated. How has it been able to do this? Well, let’s take a look at if it is only owing to an industry uplift, or if Ultra Electronics Holdings has seen some company-specific growth.
In terms of returns from investment, Ultra Electronics Holdings has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 5.6% exceeds the GB Aerospace & Defense industry of 5.5%, indicating Ultra Electronics Holdings has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Ultra Electronics Holdings’s debt level, has increased over the past 3 years from 10% to 12%.
What does this mean?
Ultra Electronics Holdings's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Ultra Electronics Holdings to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for ULE’s future growth? Take a look at our free research report of analyst consensus for ULE’s outlook.
Financial Health: Are ULE’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.
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.
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. Thank you for reading.
