Examining Flanigan’s Enterprises, Inc.’s (NYSEMKT:BDL) 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 BDL’s latest performance announced on 29 September 2018 and weigh these figures against its longer term trend and industry movements.
Did BDL’s recent earnings growth beat the long-term trend and the industry?
BDL’s trailing twelve-month earnings (from 29 September 2018) of US$3.7m has jumped 22% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 7.1%, indicating the rate at which BDL is growing has accelerated. What’s enabled this growth? Let’s take a look at if it is solely because of an industry uplift, or if Flanigan’s Enterprises has seen some company-specific growth.
In terms of returns from investment, Flanigan’s Enterprises has fallen short of achieving a 20% return on equity (ROE), recording 13% instead. Furthermore, its return on assets (ROA) of 6.5% is below the US Hospitality industry of 7.7%, indicating Flanigan’s Enterprises’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Flanigan’s Enterprises’s debt level, has declined over the past 3 years from 17% to 14%.
What does this mean?
Flanigan’s Enterprises’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 Flanigan’s Enterprises to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for BDL’s future growth? Take a look at our free research report of analyst consensus for BDL’s outlook.
- Financial Health: Are BDL’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 29 September 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 firstname.lastname@example.org.