Was ATS Automation Tooling Systems Inc.'s (TSE:ATA) Earnings Growth Better Than The Industry's?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Measuring ATS Automation Tooling Systems Inc.'s (TSE:ATA) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess ATA's recent performance announced on 31 March 2019 and compare these figures to its historical trend and industry movements.
Check out our latest analysis for ATS Automation Tooling Systems
How Did ATA's Recent Performance Stack Up Against Its Past?
ATA's trailing twelve-month earnings (from 31 March 2019) of CA$71m has jumped 50% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 5.3%, indicating the rate at which ATA is growing has accelerated. What's the driver of this growth? Let's take a look at whether it is solely because of industry tailwinds, or if ATS Automation Tooling Systems has seen some company-specific growth.
In terms of returns from investment, ATS Automation Tooling Systems has fallen short of achieving a 20% return on equity (ROE), recording 9.0% instead. However, its return on assets (ROA) of 5.4% exceeds the CA Machinery industry of 5.3%, indicating ATS Automation Tooling Systems has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for ATS Automation Tooling Systems’s debt level, has increased over the past 3 years from 9.0% to 9.7%.
What does this mean?
Though ATS Automation Tooling Systems's past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research ATS Automation Tooling Systems to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for ATA’s future growth? Take a look at our free research report of analyst consensus for ATA’s outlook.
Financial Health: Are ATA’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.
