Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at The Hain Celestial Group Inc’s (NASDAQ:HAIN) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.
Commentary On HAIN’s Past Performance
HAIN’s trailing twelve-month earnings (from 30 June 2018) of US$82m has jumped 26% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -18%, indicating the rate at which HAIN is growing has accelerated. How has it been able to do this? Let’s see if it is solely attributable to an industry uplift, or if Hain Celestial Group has experienced some company-specific growth.
In terms of returns from investment, Hain Celestial Group has fallen short of achieving a 20% return on equity (ROE), recording 4.7% instead. Furthermore, its return on assets (ROA) of 3.6% is below the US Food industry of 8.7%, indicating Hain Celestial Group’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Hain Celestial Group’s debt level, has declined over the past 3 years from 8.1% to 5.3%.
What does this mean?
Though Hain Celestial Group’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 variables that are affecting the entire industry hence the high industry growth rate over the same time period. You should continue to research Hain Celestial Group to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for HAIN’s future growth? Take a look at our free research report of analyst consensus for HAIN’s outlook.
- Financial Health: Are HAIN’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 June 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.