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When Cambria Automobiles plc's (LON:CAMB) announced its latest earnings (28 February 2019), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were Cambria Automobiles's average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not CAMB actually performed well. Below is a quick commentary on how I see CAMB has performed.
How Did CAMB's Recent Performance Stack Up Against Its Past?
CAMB's trailing twelve-month earnings (from 28 February 2019) of UK£8.4m has declined by -1.0% 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 CAMB is growing has slowed down. What could be happening here? Well, let's look at what's transpiring with margins and whether the rest of the industry is feeling the heat.
In terms of returns from investment, Cambria Automobiles has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. Furthermore, its return on assets (ROA) of 3.7% is below the GB Specialty Retail industry of 6.1%, indicating Cambria Automobiles's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Cambria Automobiles’s debt level, has declined over the past 3 years from 19% to 13%.
What does this mean?
Though Cambria Automobiles's past data is helpful, it is only one aspect of my investment thesis. Companies that are profitable, but have capricious earnings, can have many factors impacting its business. I recommend you continue to research Cambria Automobiles to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for CAMB’s future growth? Take a look at our free research report of analyst consensus for CAMB’s outlook.
- Financial Health: Are CAMB’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 28 February 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.