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Assessing Expeditors International of Washington, Inc.'s (NASDAQ:EXPD) performance as a company requires looking at more than just a years' earnings data. Below, I will run you through a simple sense check to build perspective on how Expeditors International of Washington is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its logistics industry peers.
How EXPD fared against its long-term earnings performance and its industry
EXPD's trailing twelve-month earnings (from 31 March 2019) of US$622m has jumped 17% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 11%, indicating the rate at which EXPD is growing has accelerated. What's enabled this growth? Let's take a look at if it is only because of industry tailwinds, or if Expeditors International of Washington has seen some company-specific growth.
In terms of returns from investment, Expeditors International of Washington has invested its equity funds well leading to a 29% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 17% exceeds the US Logistics industry of 5.9%, indicating Expeditors International of Washington has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Expeditors International of Washington’s debt level, has declined over the past 3 years from 39% to 33%.
What does this mean?
Though Expeditors International of Washington's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Expeditors International of Washington gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Expeditors International of Washington to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for EXPD’s future growth? Take a look at our free research report of analyst consensus for EXPD’s outlook.
- Financial Health: Are EXPD’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 31 March 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 email@example.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.