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Assessing Taylor Devices, Inc.'s (NASDAQ:TAYD) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess TAYD's recent performance announced on 28 February 2019 and evaluate these figures to its longer term trend and industry movements.
Commentary On TAYD's Past Performance
TAYD's trailing twelve-month earnings (from 28 February 2019) of US$1.7m has jumped 43% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -5.0%, indicating the rate at which TAYD is growing has accelerated. What's enabled this growth? Let's take a look at whether it is merely owing to an industry uplift, or if Taylor Devices has seen some company-specific growth.
In terms of returns from investment, Taylor Devices has fallen short of achieving a 20% return on equity (ROE), recording 4.8% instead. Furthermore, its return on assets (ROA) of 4.1% is below the US Machinery industry of 7.6%, indicating Taylor Devices's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Taylor Devices’s debt level, has declined over the past 3 years from 20% to 5.5%.
What does this mean?
Though Taylor Devices's past data is helpful, it is only one aspect of my investment thesis. Recent positive growth doesn’t necessarily mean it’s onwards and upwards for the company. There could be factors that are affecting the industry as a whole, hence the high industry growth rate over the same time period. You should continue to research Taylor Devices to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for TAYD’s future growth? Take a look at our free research report of analyst consensus for TAYD’s outlook.
- Financial Health: Are TAYD’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 28 February 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 firstname.lastname@example.org. 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.