Does Creightons Plc’s (LON:CRL) Past Performance Indicate A Stronger Future?
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Examining Creightons Plc’s (LON:CRL) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess CRL’s latest performance announced on 30 September 2018 and weigh these figures against its longer term trend and industry movements.
View our latest analysis for Creightons
How Did CRL’s Recent Performance Stack Up Against Its Past?
CRL’s trailing twelve-month earnings (from 30 September 2018) of UK£1.7m has jumped 31% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 22%, indicating the rate at which CRL is growing has accelerated. What’s enabled this growth? Let’s take a look at whether it is solely owing to industry tailwinds, or if Creightons has seen some company-specific growth.
In terms of returns from investment, Creightons has fallen short of achieving a 20% return on equity (ROE), recording 16% instead. However, its return on assets (ROA) of 8.6% exceeds the GB Personal Products industry of 8.1%, indicating Creightons has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Creightons’s debt level, has increased over the past 3 years from 7.1% to 19%.
What does this mean?
Creightons’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. 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 Creightons to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for CRL’s future growth? Take a look at our free research report of analyst consensus for CRL’s outlook.
Financial Health: Are CRL’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 September 2018. 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.
