Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Assessing Addus HomeCare Corporation's (NASDAQ:ADUS) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess ADUS's recent performance announced on 31 March 2019 and evaluate these figures to its long-term trend and industry movements.
How Well Did ADUS Perform?
ADUS's trailing twelve-month earnings (from 31 March 2019) of US$17m has jumped 23% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 10%, indicating the rate at which ADUS is growing has accelerated. What's enabled this growth? Let's take a look at if it is only attributable to an industry uplift, or if Addus HomeCare has seen some company-specific growth.
In terms of returns from investment, Addus HomeCare has fallen short of achieving a 20% return on equity (ROE), recording 6.2% instead. However, its return on assets (ROA) of 5.7% exceeds the US Healthcare industry of 5.4%, indicating Addus HomeCare has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Addus HomeCare’s debt level, has increased over the past 3 years from 9.8% to 10%.
What does this mean?
Addus HomeCare's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as Addus HomeCare gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Addus HomeCare to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for ADUS’s future growth? Take a look at our free research report of analyst consensus for ADUS’s outlook.
- Financial Health: Are ADUS’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 email@example.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.