Yahoo Finance Record plc (LON:REC): Has Recent Earnings Growth Beaten Long-Term Trend?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Examining how Record plc (LON:REC) is performing as a company requires looking at more than just a years' earnings. Below, I will run you through a simple sense check to build perspective on how Record is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its capital markets industry peers.
See our latest analysis for Record
How REC fared against its long-term earnings performance and its industry
REC's trailing twelve-month earnings (from 31 March 2019) of UK£6.4m has increased by 4.6% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 3.3%, indicating the rate at which REC is growing has accelerated. What's enabled this growth? Let's take a look at whether it is only because of industry tailwinds, or if Record has experienced some company-specific growth.
In terms of returns from investment, Record has invested its equity funds well leading to a 23% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 19% exceeds the GB Capital Markets industry of 4.9%, indicating Record has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Record’s debt level, has increased over the past 3 years from 18% to 29%.
What does this mean?
Record's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While Record has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research Record to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for REC’s future growth? Take a look at our free research report of analyst consensus for REC’s outlook.
Financial Health: Are REC’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.
