Assessing PCM Inc’s (NASDAQ:PCMI) 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 PCMI’s latest performance announced on 30 September 2018 and evaluate these figures to its historical trend and industry movements.
Were PCMI’s earnings stronger than its past performances and the industry?
PCMI’s trailing twelve-month earnings (from 30 September 2018) of US$14m has jumped 33% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 8.8%, indicating the rate at which PCMI is growing has accelerated. What’s enabled this growth? Well, let’s take a look at whether it is only because of an industry uplift, or if PCM has seen some company-specific growth.
In terms of returns from investment, PCM has fallen short of achieving a 20% return on equity (ROE), recording 9.5% instead. Furthermore, its return on assets (ROA) of 3.3% is below the US Electronic industry of 6.0%, indicating PCM’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for PCM’s debt level, has increased over the past 3 years from 2.5% to 18%.
What does this mean?
PCM’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as PCM gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research PCM to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for PCMI’s future growth? Take a look at our free research report of analyst consensus for PCMI’s outlook.
- Financial Health: Are PCMI’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.
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 email@example.com.