Yahoo Finance Interested In Halma plc (LON:HLMA)? Here's What Its Recent Performance Looks Like
After reading Halma plc's (LON:HLMA) latest earnings update (31 March 2019), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. As a long-term investor I tend to pay attention to earnings trend, rather than a single number at one point in time. I also like to compare against an industry benchmark to understand whether HLMA has outperformed, or whether it is simply riding an industry wave. Below is a brief commentary on my key takeaways.
View our latest analysis for Halma
How Well Did HLMA Perform?
HLMA's trailing twelve-month earnings (from 31 March 2019) of UK£170m has jumped 10% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 11%, indicating the rate at which HLMA is growing has slowed down. What could be happening here? Well, let's examine what's transpiring with margins and whether the rest of the industry is experiencing the hit as well.
In terms of returns from investment, Halma has fallen short of achieving a 20% return on equity (ROE), recording 17% instead. However, its return on assets (ROA) of 11% exceeds the GB Electronic industry of 6.7%, indicating Halma has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Halma’s debt level, has increased over the past 3 years from 13% to 16%.
What does this mean?
Halma'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 suggest you continue to research Halma to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for HLMA’s future growth? Take a look at our free research report of analyst consensus for HLMA’s outlook.
Financial Health: Are HLMA’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 March 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.
