Was Canaccord Genuity Group Inc’s (TSE:CF) Earnings Growth Better Than The Industry’s?
Today I will take a look at Canaccord Genuity Group Inc’s (TSE:CF) most recent earnings update (30 June 2018) and compare these latest figures against its performance over the past few years, as well as how the rest of the capital markets industry performed. As an investor, I find it beneficial to assess CF’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time.
See our latest analysis for Canaccord Genuity Group
How Well Did CF Perform?
CF recently turned a profit of CA$23m (most recent trailing twelve-months) compared to its average loss of -CA$54.9m over the past five years.
In terms of returns from investment, Canaccord Genuity Group has fallen short of achieving a 20% return on equity (ROE), recording 4.6% instead. Furthermore, its return on assets (ROA) of 0.6% is below the CA Capital Markets industry of 5.8%, indicating Canaccord Genuity Group’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for Canaccord Genuity Group’s debt level, has increased over the past 3 years from 2.2% to 7.2%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Canaccord Genuity Group has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Canaccord Genuity Group to get a better picture of the stock by looking at:
Financial Health: Are CF’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 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
