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Does Oshkosh Corporation's (NYSE:OSK) 23% Earnings Growth Make It An Outperformer?

Simply Wall St
·3 min read

For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine Oshkosh Corporation's (NYSE:OSK) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers.

Check out our latest analysis for Oshkosh

Were OSK's earnings stronger than its past performances and the industry?

OSK's trailing twelve-month earnings (from 30 September 2019) of US$579m has jumped 23% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 20%, indicating the rate at which OSK is growing has accelerated. What's enabled this growth? Well, let’s take a look at whether it is merely a result of an industry uplift, or if Oshkosh has seen some company-specific growth.

NYSE:OSK Income Statement, January 27th 2020
NYSE:OSK Income Statement, January 27th 2020

In terms of returns from investment, Oshkosh has invested its equity funds well leading to a 22% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 11% exceeds the US Machinery industry of 7.0%, indicating Oshkosh has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Oshkosh’s debt level, has increased over the past 3 years from 12% to 21%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 45% to 32% over the past 5 years.

What does this mean?

Though Oshkosh's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Oshkosh gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Oshkosh to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for OSK’s future growth? Take a look at our free research report of analyst consensus for OSK’s outlook.

  2. Financial Health: Are OSK’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 30 September 2019. This may not be consistent with full year annual report figures.

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.

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. Thank you for reading.