Examining Haverty Furniture Companies, Inc.'s (NYSE:HVT) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess HVT's latest performance announced on 30 June 2019 and weight these figures against its longer term trend and industry movements.
Did HVT's recent earnings growth beat the long-term trend and the industry?
HVT's trailing twelve-month earnings (from 30 June 2019) of US$27m has jumped 28% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 8.4%, indicating the rate at which HVT is growing has accelerated. What's the driver of this growth? Well, let’s take a look at whether it is only a result of an industry uplift, or if Haverty Furniture Companies has seen some company-specific growth.
In terms of returns from investment, Haverty Furniture Companies has fallen short of achieving a 20% return on equity (ROE), recording 10% instead. Furthermore, its return on assets (ROA) of 4.9% is below the US Specialty Retail industry of 5.5%, indicating Haverty Furniture Companies's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Haverty Furniture Companies’s debt level, has declined over the past 3 years from 12% to 8.2%.
What does this mean?
Haverty Furniture Companies's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? You should continue to research Haverty Furniture Companies to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for HVT’s future growth? Take a look at our free research report of analyst consensus for HVT’s outlook.
Financial Health: Are HVT’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 2019. This may not be consistent with full year annual report figures.
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