Yahoo Finance Where Cranswick plc's (LON:CWK) Earnings Growth Stands Against Its Industry
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Understanding Cranswick plc's (LON:CWK) performance as a company requires examining more than earnings from one point in time. Today I will take you through a basic sense check to gain perspective on how Cranswick is doing by evaluating its latest earnings with its longer term trend as well as its industry peers' performance over the same period.
See our latest analysis for Cranswick
How Well Did CWK Perform?
CWK's trailing twelve-month earnings (from 31 March 2019) of UK£70m has declined by -0.6% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 13%, indicating the rate at which CWK is growing has slowed down. What could be happening here? Well, let’s take a look at what’s going on with margins and whether the entire industry is feeling the heat.
In terms of returns from investment, Cranswick has fallen short of achieving a 20% return on equity (ROE), recording 13% instead. However, its return on assets (ROA) of 9.7% exceeds the GB Food industry of 5.6%, indicating Cranswick has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Cranswick’s debt level, has declined over the past 3 years from 17% to 16%.
What does this mean?
Cranswick's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors affecting its business. I recommend you continue to research Cranswick to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for CWK’s future growth? Take a look at our free research report of analyst consensus for CWK’s outlook.
Financial Health: Are CWK’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.
