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Does Carr's Group plc's (LON:CARR) Recent Track Record Look Strong?

Simply Wall St

Assessing Carr's Group plc's (LON:CARR) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess CARR's latest performance announced on 02 March 2019 and evaluate these figures to its historical trend and industry movements.

Check out our latest analysis for Carr's Group

How Did CARR's Recent Performance Stack Up Against Its Past?

CARR's trailing twelve-month earnings (from 02 March 2019) of UK£11m has jumped 21% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -1.8%, indicating the rate at which CARR is growing has accelerated. What's the driver of this growth? Well, let’s take a look at if it is merely owing to an industry uplift, or if Carr's Group has seen some company-specific growth.

LSE:CARR Income Statement, August 23rd 2019

In terms of returns from investment, Carr's Group has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. Furthermore, its return on assets (ROA) of 5.0% is below the GB Food industry of 5.6%, indicating Carr's Group's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Carr's Group’s debt level, has increased over the past 3 years from 7.2% to 8.9%.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Carr's Group gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Carr's Group to get a more holistic view of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for CARR’s future growth? Take a look at our free research report of analyst consensus for CARR’s outlook.
  2. Financial Health: Are CARR’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.
  3. 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 02 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.