Yahoo Finance Universe Group plc (LON:UNG): Has Recent Earnings Growth Beaten Long-Term Trend?
For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine Universe Group plc's (LON:UNG) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers.
View our latest analysis for Universe Group
How Did UNG's Recent Performance Stack Up Against Its Past?
UNG's trailing twelve-month earnings (from 31 December 2018) of UK£805k has jumped 27% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -8.1%, indicating the rate at which UNG is growing has accelerated. How has it been able to do this? Well, let’s take a look at whether it is only a result of an industry uplift, or if Universe Group has seen some company-specific growth.
In terms of returns from investment, Universe Group has fallen short of achieving a 20% return on equity (ROE), recording 3.4% instead. Furthermore, its return on assets (ROA) of 2.9% is below the GB IT industry of 6.6%, indicating Universe Group's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Universe Group’s debt level, has declined over the past 3 years from 9.5% to 3.7%.
What does this mean?
Universe Group's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Recent positive growth doesn’t necessarily mean it’s onwards and upwards for the company. There could be variables that are influencing the entire industry hence the high industry growth rate over the same period of time. I suggest you continue to research Universe Group to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for UNG’s future growth? Take a look at our free research report of analyst consensus for UNG’s outlook.
Financial Health: Are UNG’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 December 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.
