Advertisement
UK markets closed

  • NIKKEI 225

    37,552.16
    +113.55 (+0.30%)
     

  • HANG SENG

    16,828.93
    +317.24 (+1.92%)
     

  • CRUDE OIL

    83.40
    +1.50 (+1.83%)
     

  • GOLD FUTURES

    2,335.70
    -10.70 (-0.46%)
     

  • DOW

    38,503.69
    +263.71 (+0.69%)
     

  • Bitcoin GBP

    53,266.82
    -124.82 (-0.23%)
     

  • CMC Crypto 200

    1,426.91
    +12.15 (+0.86%)
     

  • NASDAQ Composite

    15,696.64
    +245.33 (+1.59%)
     

  • UK FTSE All Share

    4,378.75
    +16.15 (+0.37%)
     
Money:

What is the true cost of the UK state pension?

To get a sense of the true value of the state pension, you can look at how much you would need to save to match it yourself

Want To Invest In JD Sports Fashion plc (LON:JD.)? Here's How It Performed Lately

Simply Wall St

Understanding how JD Sports Fashion plc (LSE:JD.) 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 JD Sports Fashion is doing by comparing its latest earnings with its long-term trend as well as the performance of its specialty retail industry peers.

View our latest analysis for JD Sports Fashion

Did JD. beat its long-term earnings growth trend and its industry?

JD.'s trailing twelve-month earnings (from 03 August 2019) of UK£258m has increased by 2.9% 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 28%, indicating the rate at which JD. is growing has slowed down. To understand what's happening, let’s take a look at what’s going on with margins and whether the rest of the industry is facing the same headwind.

LSE:JD. Income Statement, October 1st 2019
LSE:JD. Income Statement, October 1st 2019

In terms of returns from investment, JD Sports Fashion has invested its equity funds well leading to a 22% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 6.4% exceeds the GB Specialty Retail industry of 3.7%, indicating JD Sports Fashion has used its assets more efficiently. However, its return on capital (ROC), which also accounts for JD Sports Fashion’s debt level, has declined over the past 3 years from 38% to 14%.

What does this mean?

While past data is useful, it doesn’t tell the whole story. While JD Sports Fashion has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. You should continue to research JD Sports Fashion to get a more holistic view of the stock by looking at:

ADVERTISEMENT

  1. Future Outlook: What are well-informed industry analysts predicting for JD.’s future growth? Take a look at our free research report of analyst consensus for JD.’s outlook.

  2. Financial Health: Are JD.’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.

  3. 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 03 August 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.