Yahoo Finance How Has James Halstead plc’s (LON:JHD) Earnings Fared Against The Long Term Trend
Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at James Halstead plc’s (LON:JHD) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.
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Have JHD’s earnings improved against past performances and the industry?
JHD’s trailing twelve-month earnings (from 30 June 2018) of UK£37m has increased by 0.5% 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 4.6%, indicating the rate at which JHD is growing has slowed down. To understand what’s happening, let’s look at what’s going on with margins and if the whole industry is feeling the heat.
In terms of returns from investment, James Halstead has invested its equity funds well leading to a 28% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 19% exceeds the GB Building industry of 6.0%, indicating James Halstead has used its assets more efficiently. However, its return on capital (ROC), which also accounts for James Halstead’s debt level, has declined over the past 3 years from 35% to 32%.
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 James Halstead gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research James Halstead to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for JHD’s future growth? Take a look at our free research report of analyst consensus for JHD’s outlook.
Financial Health: Are JHD’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 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
